Takaful and Mutuality by Mohd. Masua Billah

Top 20 FREQUENT WORDS

takaful 84 insurance 31 fund 24 participants 21 policy 17 contract 16 investment 15 participant 15 retakaful 14 surplus 13 conventional 12 document 12 islamic 12 contribution 11 pakistan 11 operator 10 profit 10 risk 9 shariah 9 fee 8 income 8 insured 8 limited 8 model 8

DOCUMENT KEY POINTS

jamil akhtar khan acii mcit master mariner chief executive officer takaful pakistan limited
al huda cibe takaful an emerging niche market by capt

i R operationally takaful refers to participants mutually contributing to a common fund with the purpose of having mutual indemnity in the case of peril or loss
meaning of takaful i R takaful comes from the arabic root word a kafala a guarantee

reference a al quran i R help ta awan one another in furthering virtue birr and allah consciousness taqwa and do not help one another in furthering evil and enmity
i R takaful is a form of mutual help ta awun in furthering good virtue by helping others who are in need in hardship

reference a hadith i R tie the camel first then submit tawakkal to the will of allah the hadith implied a strategy to mitigate reduce risk
i R takaful provides a strategy of risk mitigation reduction by virtue of collective risk taking that distributes risks and losses to a large number of participants

a c the alternative takaful contract which conforms to the principles of islamic dealings is halaal being the contract of cooperative insurance which is founded on the basis of charitable donation and shariah compliant dealings
fiqh academy resolution a c islamic fiqh science of shariah academy emanating from the organization of islamic conference meeting in its second session in jeddah ksa from to rabi ulthani a

i R payments made with the intention of tabarru contribution i R eliminates the elements of gharrar maisir and riba
i R takaful contract pertains to tabarru at as against mu awadat in case of conventional insurance

insurance defined i R definition of an insurance contract i R an agreement whereby one party the insurer in return for a consideration the premium undertakes to pay to the other party the insured a sum of money or its equivalent in kind on the happening of a specified event which is contrary to the insured s financial interest i R subject matter of an insurance contract i R a what is it that is insured in a fire policy not the bricks and materials used in building the house but the financial interest ie money of the insured in the subject matter of insurance a lord justice brett in castellian v
preston a

i R elements of a c uncertainty a gharrar a c gambling a maisir a c interest a riba a c uw investment profit belongs to the company i R note that the scholars do not object to insurance per se but only to certain weaknesses in the insurance contract
objections to conventional insurance i R scholars view the insurance contract as an exchange contract a money is being exchanged for money over time

i R gharrar in insurance contracts pertains to deliverability of subject matter ie uncertainty as to i R whether the insured will get the compensation promised i R how much the insured will get i R when will the compensation be paid i R thus it involves an element of uncertainty in the subject matter of the insurance sales contract which renders it void under the islamic law
uncertainty a gharrar i R conventional insurance contract is basically a contract of exchange mu awadat ie buying and selling whereby policy indemnity is sold as goods with the premium as the price or consideration

good faith forbids either party from concealing what he privately knows to draw the other into a bargain from his ignorance of that fact and his believing to the contrary lord mansfield in carter v
i R the insured loses the money paid for the premium when the insured event does not occur

i R insurance funds are invested in financial instruments which contain the element of riba
allah has permitted trading and forbidden riba al baqarah

i R the first takaful company was set up in sudan in almost simultaneously followed by another one set up in bahrain
i R it evolved and continued in one form or the other throughout the abbaside period and even later during the ottoman empire

i R the total insurance premium of oic countries for was usd billion of this takaful contribution accounts for ie usd
i R nona muslims increasingly opting for takaful products for commercial benefits

generally these risk sharing arrangements allow the takaful operator to share in the underwriting results from operations as well as the favourable performance returns on invested premiu miss
mudaraba model i R the surplus is shared between the participants with a takaful operator

expenses investment profit by from company investments company s share from surplus takaful general general operational contribution surplus participant takaful takaful cost of paid by takaful profit fund fund participant participant s share from surplus
profits attributable mudaraba model to shareholders company s admin

wakala model i R cooperative risk sharing occurs among participants where a takaful operator earns a fee for services as a wakeel or agent and does not participate or share in any underwriting results as these belong to participants as surplus or deficit
under the alwakala model the operator may also charge a fund management fee and performance incentive fee

i R the contributions received would also be a part of this fund and the combined amount will be used for investment and the profits earned would again be deposited into the same fund which also eliminates the issue of gharar

holder mudarib s management wakalah investmen share of ptf s expense of profit loss fee t investment the income income company takaful operator investment by the company waqf operational claims cost of takaful investment reserves surplus retakaful income balance p a r t i c i p a n t s t a k a f u l f u n d p
wakala waqf model share share h o l d e r s f u n d s

it is normally divided into following classes i R property takaful i R marine takaful i R motor takaful i R miscellaneous takaful
general takaful types i R general takaful a offers all kinds of nonlife risk coverage

subject to the participant continuing as a member of the fund and complying with his her undertaking under his her declaration made in the proposal form he she is indemnified by the fund as one of its beneficiaries against the perils events described in the manner and to the extent as stated hereunder

takaful policy document participants membership document i R duration i R normally policies are issued for the duration of twelve months
however the benefits under this document except surplus if any shall cease on the arrival of goods at destination

this policy my also be terminated at any time at the request of the participant in which case the participant will be paid an amount equivalent to the actual contribution made initially by him her less the amount worked as per the following scale applicable to the period during which the policy has been in force
takaful policy document participants membership document i R cancellation clause i R this policy may at any time be terminated at the option of the company on days notice to that effect being given to the participant at his last known address

i R investment management share i R the company shall act as a mudarib for the purpose of managing the investment of the participant s contribution
takaful policy document participants membership document i R takaful operator s fee i R the company shall deduct takaful operator s fee out of the contribution received under this policy

takaful policy document participants membership document i R surplus distribution i R if at the end of the period of policy stated in the schedule there is a surplus in the general takaful fund the same shall be distributed among the participants
provided that in case the participant has made any claim or received any benefits under this policy that claimed amount shall be deducted from the net amount worked out as due to the participant

bancatakaful i R background i R range of products i R savings a personal accident homeowners comprehensive credit cards etc
i R financing smes a trade credit takaful business office equipment assets

advantages of bancatakaful i R facilitation desk equipment
i R one stop shop for clients

i R swissre has formed a separate retakaful pool i R munichre to form a separate retakaful pool i R provision in takaful rules a
retakaful i R currently few retakaful companies worldwide offering a relatively small capacity i R sudan national reinsurance

i R personal lines insurance business leasing health medicare growing at a higher rate than other conventional classes
i R islamic banking on sound footing with support of the govt

takaful target market i R people who do not insure due to religious reasons
i R people who currently do not insure at all

takaful pakistan limited i R takaful pakistan is a joint venture of prestigious local foreign institutions including i R house building finance corporation
i R large initial paid up capital

i R we intend to be the trend setter for excellent clients servicing operational bench marks and prudent underwriting practices
i R retakaful arrangements with a consortium of internationally reputed retakaful operators

i R takaful models i R takaful types i R bancatakaful i R retakaful i R takaful pakistan limited
i R comparison with conventional insurance

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

50

Published Date

2016-09-17 01:19:30

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Takaful and Mutuality by Mohd. Masua Billah

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Top 20 FREQUENT WORDS

DOCUMENT KEY POINTS

DOCUMENT WORD ANALYSIS

Main Category

KeyWords

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