TAKAFUL is the halal way to mitigate the risk and is alternate to insurance in Islamic way. By most of the research, the scholars become able to introduce that system in which there should not include the Riba (interest), Qimar (gambling) and Gharar (uncertainty) and people can continue the assurance in halal way. Riba (interest) is include by most of life insurance companies and being a Muslim nation. Its compulsory to earn halal, eat halal and utilise our money in halal way. There was no option before a specific time for those people who want to contribute their money in such a halal way and want to take benefits same like this in the limitations of Islam. Word Takaful is derived from Arabic word Kafala and Kafala means mutual guarantee. Takaful is not only a tool to mitigate the risk, its also a platform of making halal profits through Takaful. It is an ideology which promotes the joint guarantee, community well being and community pooling system. There were serious efforts of scholars to introduce an Islamic alternative of conventional insurance. 1970s, they able to fulfil their dream and the 1st fatwa issued by the Council of Saudi Arabia in favour of Islamic insurance model. Moreover, first Takaful company was set up in Sudan in 1979 that followed by another one in Bahrain. With the short time of span, there was huge development in the working of Takaful and they opened different offices in different countries. In 2005, rules and regulations for Takaful defined by Securities and Exchange Commission of Pakistan. After that, different companies started their set up in Pakistan with the name of Takaful Pakistan Limited, Pak Kuwait Takafui Ltd. in General Takaful segment later on in life Takaful, first Takaful Operator started their business with the name of Pak Qatar Family Takaful Ltd, Dawood Family Takaful Ltd etc. In Takaful, there is a Supervisory Shariah Board which implements their advices from Takaful, while Conventional Insurance dont have any Shariah implementation. Three points will prove that Takaful is halal, Firstly, In Takaful, there is a contract of Aqde Taburru, which means that there is contract in which customer is paying some amount and sharing his/her risk. While in conventional insurance, the client is paying some amount but with this purpose that he is selling his/her risk and company is buying his/her risk Secondly, now, the Takaful companies put some of the contribution amount in the Waqf-pool; a pool, in which all the participants put their amount in that pool for any emergency. In case of any claim in Takaful, the claims will be paid by the Waqf-pool. In conventional Insurance, there is just an imaginary pool arid in case the claims will be paid by the company by self. Lastly, Takaful companies invest all the contributions into the halal investment which are supervised by the Shariah Supervisory Board and their profits will be also halal. In Conventional Insurance companies, the investment is doing in all the sectors while they are halal or riot because in these companies, there is a just Shariah Advisory Board which can just advice to the companies. In result the profits will be interest based. In view of above, Takaful is going to grow as Islamic Insurance. Its Shari ah compliant nature allows Takaful to face any problem to Conventional Insurance. The Takaful is trying to be the first choice of people against Conventional Insurance. Its an alternative of Conventional Insurance. As business professional, this is our responsibility to tell what is good and Takaful is that product, for which, there is dire need to develop the awareness among the people. (Umar Saleem & Maryam Saeed, University of Central Punjab LHR)