Micro-Takaful as stimulus for financial inclusion: A key component towards sustainable development

Abstract

Islamic microfinance establishments and micro takaful industry exist not exclusively to lighten poverty yet in addition to enable low-income individuals in finding an exit from neediness, and give them a genuine any desire for being financially self-continuing. They have an arrangement of giving financial services and backup plan to defenseless and independently employed individuals. Financial inclusion is viewed as a part of social inclusion driver and social inclusion is a driver for practical development, at that point, we can infer that financial inclusion is a driver for sustainable development. The financial inclusion advances sustainable development through of microfinance experts which are upheld by micro-takaful insurance to advance development for avoided groups of individuals or foreign communities. To clarify the above actualities, the present paper comprises of five areas: the initial segment of the paper dedicated to clarify the ideas of micro- insurance, micro- takaful, financial inclusion and practical development. The subsequent part clarifies the connection between poverty, insurance and sustainable development. The third part will clarify contrasts between regular micro insurance, and Islamic micro- takaful insurance as far as securing poor and powerless. The fourth segment gives a short performance of small scale micro-takaful in reality. At long last, the last part introduces the difficulties remain and finishing up comments.