International Science Community Association Research Journal of Recent Sciences 2277 - 2502 3 10 2014 October 2 Poverty, Conventional Insurance and Takaful: A Journalistic Review 108 112 EN A. Kiran 1 Department of Management Sciences, Shaheed Zulfikar Ali Bhutto Institute of Science andTechnology, (SZABIST) Islamabad Campus, PAKISTAN Khan M.A. 2 Hemmatipour Mohammad 1 Islamic Azad University, Germi branch, Ardabil, IRAN Javidzade HamidReza 2 Germi Branch, Ardabil, IRAN Fani Reza 3 Khosrotabar Azadeh 1 Shiraz University, IRAN Fakhrahmad SeyedMostafa 2 S. Fazelian 1 Health Care Center, Kermanshah University of Medical Sciences, Kermanshah, IRAN N. Namazi 2 Research Committee, Faculty of Nutrition, Tabriz University of Medical Science, Tabriz, IRAN J. Heshmati 3 Jafari Hamed 1 Master of Physical Education and Sports Science, Islamshahr Branch, Islamic Azad University, Tehran, IRAN Hadavi SeyedehFarideh 2 Islamshahr Branch, Islamic Azad University, Tehran, IRAN Vashmehsaraei MehrshadNasiri 1 Master of Executive Management, Alborz, IRAN Vahedi Elham 2 Department of Executive Master of Business Administration, Alborz, IRAN Shirian Abbas 3 Department of Management and Global Economy, Instroct Scientific Applied Training Center, Tehran, IRAN Jaganathan GaneshK. 1 Institute of Biothermal Technology, University of Shanghai for Science and Technology, Shanghai 200093, CHINA Baolin Liu 2 Laleh Lajevardi 1 Department of Occupational Therapy, School of Rehabilitation Sciences, Iran University of Medical Sciences, Tehran, IRAN Afsoon HassaniMehraban 2 Dept. of Occupational Therapy, School of Rehabilitation Sciences, Rehabilitation Research Center, Iran Uni. of Medical Sciences, Tehran, IRAN RassafianiMehdi 3 Dept. of Occupational Therapy, Pediatric Neuro Rehabilitation Research Center, Uni. of Social Welfare and Rehabilitation Sci., Tehran, IRAN Kamali Mohammad 4 Department of Rehabilitation Management, School of Rehabilitation Sciences, Iran University of Medical Sciences, Tehran, IRAN G O'Toole 5 University of Newcastle, AUSTRALIA Roman Michalovic 1 Faculty of Special Engineering, Mikomix, Družinská 897, Rosina, SLOVAKIA Khan WafaQaiser 1 Computer and Software Engineering Department, Bahria University, Karachi Campus, PAKISTAN Khan ReemaQaiser 2 Department of Computer Science, Federal Urdu University of Arts, Sciences and Technology, Karachi, PAKISTAN Sarim Muhammad 3 Shaikh AbdulBasit 4 Sheikh KashifRaffat 5 N.Y. Bakar 1 Advanced Materials Research Group, School of Fundamental Sciences, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu, MALAYSIA M.I.N. Isa 2 Center of Corporate Communication and Image Development, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu, MALAYSIA Ansari Bahareh 1 Dept. of Agricultural Development, College of Agriculture, Tehran Science and Research Branch, Islamic Azad University, Tehran, IRAN Mirdamadi SeyedMehdi 2 Dept. of Agricultural Extension and Education, College of Agri., Tehran Science and Research Branch, Islamic Azad University, Tehran, IRAN Hosseini SeyedJamalFarajollah 3 Dept. of Renewable Energy and Environmental Engineering, College of New Sciences and Technologies, University of Tehran, Tehran, IRAN Noorollahi Younes 4 Tootak MohammadAli 1 Islamic Azad University Central Tehran Branch, TEHRAN Diba Darab 2 Ahmadi MohamadRamazan 1 Department of Accounting, University of Shahid Chamran Ahvaz Ahvaz IRAN Sedghiani BabakAbedi 2 Jamali Kamran 3 Nafiseh Taherzadeh 1 Master of Architecture, Lecturer Department of architectural, Qazvin Branch,Islamic Azad University,Qazvin,IRAN Naderi SeyedSajjadChopan 1 Department of Art Architecture, Shabestar Branch, Islamic Azad University, Shabestar, IRAN Shafiei AliDashti 2 G. ShahryarShaghaghi 3 MaryT. Amirtha 1 Department of Social Work, Bishop Heber College, INDIA Shalini J.Florence 2 Iqra Abdullah 1 Faculty of Management, University of Technology (UTM), MALAYSIA COMSATS Yahya Rashid 2 Institute of Information Technology, Lahore, PAKISTAN > Review Paper 2013 10 20 2014 October 2 Substantial income is always an issue for poor households. Insurance is an effective mechanism for reducing the vulnerability of the poor from the effects of diseases, theft, disability, and other hazards. Unexpected losses can be protected by conventional insurance. In Muslim world, Shariah scholars prohibit the conventional insurance system because of Gharar (Uncertainty), Maisir (Gambling), and Riba (Interest). Insurance covers risks and risk can be managed by avoiding, mitigation, transfer, combination, or loss prevention activities. Takaful is one of the substitutes of insurance system, which follows the rules and regulations of Islamic Shariah. In Takaful, insurance is like collective endeavor in which a group of people, following a particular scheme, financially support the catastrophic losses that are faced by an individual, who is policy holder of that particular scheme. In the past studies little evidence is found that counter Takaful System Poverty and deprivation among the Muslim societies. Unfortunately, less services available to poor Muslim population due to affordability, lack of knowledge, and insecurities of the products. Few scholars have proposed the solution of these issues in the Micro-Takaful products and in cooperative structure scheme. So, this study is investing whether Takaful has prospectives to lessen poverty or not. More importantly, this study will also attempt to find out the impact of Micro-Takaful products on poverty reduction. Copyright@ International Science Community Association