question 3

You just graduated from Zayed university and received a car as a graduation gift from your parents. In order to register this car in your name, the car dealer offered your parents two insurance options. The first option entails insurance from Zarco insurance, a leading conventional insurance company. The second option entails insurance from Marco Takaful company, a leading takaful company. Your parents always strive to make sure that all their dealings are shariah compliant. However, they are not familiar with the financial technicalities of the insurance industry and ask you to help them understand the differences between the options in terms of shariah compliance. Based on your knowledge of Islamic finance, which factors will you consider in advising your parents for shariah compliance solution for your car. Please elaborate in detail t y discussing the factors that lead to shariah compliance or non-compliance of Zarco insurance and Marco Takaful company.