Takaful World Prospective Middle East & North Africa

Top 20 FREQUENT WORDS

takaful 257 operator 118 ptf 64 business 60 shariah 57 participants 51 fund 39 investment 39 rules 31 commission 30 surplus 27 funds 22 shareholders 21 means 20 ordinance 18 contributions 16 islamic 16 assets 15 expenses 15 insurance 15 pakistan 15

DOCUMENT KEY POINTS

a in exercise of the powers conferred by sub section of section of the insurance ordinance xxxix of read with clause lxiv of section and the second proviso to section thereof the federal government is pleased to make the following rules the same having been previously published as required by subsection of the said section namely

the objective of this being that risks of non permissible classes of takaful business such as which may not be in accordance with the principles of indemnification of losses or insurance of businesses of non permissible items as defined by the shariah board may not be included in the takaful operations

no person other than a registered takaful operator shall without the written consent of the commission use the word takaful or any other word implying similar meaning indicating that such person carries on takaful business in the name description or title under which it carries on business in pakistan or make any representation to such effect in any bill head letter paper notice or advertisement or in any other manner whatsoever
existing life and non life or general insurance companies carrying on conventional business shall not be permitted to underwrite takaful business or launch such products provided that in case an existing non life or general insurer wishes to transform its business into takaful business it shall be given a period of not more than one year from the date it start underwrite takaful products after which it would be required to underwrite takaful products only

the income of the ptf shall consist of the following namely a contributions received from participants other than the portion transferred to the pif under family takaful policies including takaful operator s fees which should be a part of the contributions b claims received from re takaful operators and re insurers c investment profits generated by the investment of funds and other reserves attributable to participants in the ptf d salvages and recoveries e qard e hasna by the shareholders fund to the ptf in case of a deficit f commission received from re takaful operators and reinsurers and g any donation made by the shareholders
investment of funds may be made in consonance with the islamic concept of the mudaraba wakala or a combination of mudaraba and wakala at the option of the takaful operator or its appointed actuary in case of family takaful and the shariah board as clearly spelled out in the participants membership documents

in the case of general takaful operator the income of the shareholders fund shall consist of the following namely a takaful operator s fees which shall not be determined with reference to the surplus in the ptf b profit on the investment of the shf and c proportion of the investment profit generated by the investment of the ptf or the fees for investment as per the ptf rules and the pmd

the ptf as well as pmd for each class of takaful business shall be approved by the shariah board of the takaful operator and after its approval the same shall be filed with the commission and unless objected to in writing within fifteen days of such filling by the commission the same shall assumed to be approved and remain in force and if objected to in writing the objections shall be removed by the takaful operator to the satisfaction of the commission

surplus shall arise from the total contributions paid by the participants to the ptf less the total value of claims paid less claims received from retakaful or reinsurance and recoveries made to hem for the risks covered under the ptf less takaful operator s fees charged related to takaful operations managed by the takaful operator less commission paid to the intermediaries and the change in the technical reserves

the board of directors with the consent of the shariah board of the takaful operator shall initially set out the detailed mechanism for the distribution of such surplus and the frequency of distributions made annually or more frequently after the technical evaluation of assets and liabilities

the appointed actuary of the family takaful operator shall ensure that the products are sound and workable whereas the shariah board of the takaful operator shall ensure that these conform to the islamic principles
the takaful operator shall set the fee structure and the profit sharing ratio on the investment management based on the advice of the shariah board and the appointed actuary if any

in the case of a participants takaful fund established in respect of family takaful business no part of the participants takaful fund shall be allocated by way of takaful benefits to participants except with the approval of the appointed actuary and out of a surplus of assets over liabilities as shown on the last statutory valuation of the participants takaful fund and on the making of any such allocation that surplus shall be treated for purposes of this rule as reduced by the amount allocated
a participants takaful fund established by a takaful operator for any class of business shall notwithstanding that the takaful operator at any time ceases to carry on that class of business in pakistan continue to be maintained by the takaful operator so long as the takaful operator is required under these rules to maintain proper books and records for policies belonging to that class

the takaful operators shall be allowed to invest in immoveable property subject to the following conditions namely i the use and intended use of the property should be in compliance with the islamic principles and ii return on rented property may be in the form of fixed rent but in case of delayed payments penalty may be charged and the penalty amount shall be given to charity
therefore it is not permissible to acquire the shares debentures or certificates of the companies providing financial services like conventional banks or the companies involved in business prohibited by shariah like alcohol production gambling or night club activities etc ii the shariah board of the takaful operator shall take into consideration factors such as the proportion of income of the investee company from

in the event that the capacity provided by a shariah complaint re takaful operator is not sufficient to support the business strategy of the takaful operator the takaful operator under advice of its shariah board may be allowed to enter into re takaful and reinsurance contracts with conventional reinsurance companies till such time that proper re takaful arrangements are available
the takaful operators may invest a portion of their funds in liquid or short notice deposits schemes of islamic banks and their branches or other islamic financial institutions placements in pls saving accounts of islamic banks and placement in current accounts of traditional banks without any return thereon

the commission may by notice in writing require a takaful operator to submit the forms of proposal and policies for the time being in use by the takaful operator and any brochure which is for the time being in use there by the takful operator for describing the terms or conditions of or the benefits to be or likely to be derived from policies and where the whole or part of any such forms or brochure is not in urdu or english there shall be submitted with it a translation in the urdu or english
where the contribution payable under sub rule is received by any person including a takaful agent or a takaful broker on behalf of a takaful operator such receipt shall be deemed to be receipt by the takaful operator for the purposes of that sub rule and the onus of proving that the contribution payable was received by a person including a takaful broker who was not authorized to receive such contribution shall lie on the takaful operator

the central shariah board may hold meetings with the members of the shariah boards of all takaful operators individually or jointly anytime it deems fit to discuss development of takaful business and also may hold such meetings on the request of shariah board of the takaful operators
each takaful operator shall appoint a shariah board sb of not less than three members which shall be responsible for the approval of products documentation as well as approval of all operational practices and investment of funds which shall be filed with the commission

in case of any conflict between these rules and the insurance rules and the securities and exchange commission insurance rules the provisions of these rules shall prevail
the provisions of the ordinance the insurance rules and the securities and exchange commission insurance rules shall also be applicable in addition to these rules

Please note, This is an auto generated summary based on sentances position in the document and other factors

DOCUMENT WORD ANALYSIS

Main Category

AlHuda Material\takaful

KeyWords

taka islam insur malaysia productdeferred shariah countries muslim financial retakaful model growth custom partner developed service mutual bankable provided scheme

DOCUMENT REFERENCES

Number of Pages

16

Published Date

2006-01-03 14:01:14

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Takaful World Prospective Middle East & North Africa

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Top 20 FREQUENT WORDS

DOCUMENT KEY POINTS

DOCUMENT WORD ANALYSIS

Main Category

KeyWords

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DOCUMENT REFERENCES

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