ABSTRACT Insurance in Islam is essentially a concept of mutual help. Insurance business under conventional system is based on uncertainty, which is prohibited in Islamic society under Islamic principles. So there is need to clear the difference between the conventional insurance and the Islamic insurance. A rich literature also describes such differences but the present article addresses the differences based on conceptual and operational framework. Keywords:Aqilah; Maisir; Mudarabah; Mudarabah Model; Tabarru; Takaful; Wakalah Model; Wakalah Waqf Model.