1.0 INTRODUCTION Islamic insurance, also known as takaful, is a product and service that guarantees and provides risk protection to its consumers according to the Islamic principle. Islamic insurance and conventional insurance both use the same concept of collateral. There were also differences between takaful and conventional where takaful is based on compliance with shariah while conventional is based on the principle of risk taking and speculation. Muslim jurists generally accept that the concept of insurance is not contradictory to the principle of sharia and has also been accepted by Islam and the Holy Prophet. According to Islam and Insurance (2007), Islam requires the protection of some fundamental rights which are the right to protect religion, the right to protect life, the right to protect dignity or honor, the right to protect property and the right to protect the mind. Nowadays, the public is more concerned about their safety and security for both themselves and their family. Therefore, the consumer must understand the concept before purchasing insurance and choose the suitable product that benefits him. There were many differences between Islamic insurance and conventional insurance and due to these differences the consumer has his own understanding and opinion towards the insurance product. An insurance agent and the industry play the major role in making the consumer more knowledgeable and understanding of each insurance product. TAKAFUL: A BRIEF OVERVIEW Takaful has existed since 215 BC and has been practiced for over 1400 years. The word takaful comes from the Arabic term which is Kafalah. According to General Tkaful (2008), it means mutual guarantee or joint guarantee between...... middle of paper......Rexhepi (2013, May 8). Jihad, Shariah and their implications for security and geopolitics. Retrieved April 25, 2014, from http://fmso.leavenworth.army.mil/Collaboration/COCOM/EUCOM/Jihad-Shariah.pdfNadiah 'Aqilah, M. A., & Hamid, M. A. (2013). Shariah Compliance of Wakalah Concept in Takaful Operation: A Case Study of a Takaful Operation in Malaysia. Tazkia Islamic Finance and Business Review, 8, 221. Government Document Economic Planning Unit, (2010). Population by Sex, Ethnic Group and Age, Malaysia, 2010. Retrieved March 26, 2014, from http://www.epu.gov.my/epu-theme/pdf/1.2.5.pdf Department of Statistics Malaysia, (2010) . Population distribution by local authority areas and Mukim (Wilayah Persekutuan Kuala Lumpur). Retrieved March 26, 2014, from http://www.statistics.gov.my/portal/download_Population/files/population/05Jadual_M ukim_negeri/Mukim_WPKL.pdf