Legal & Regulatory Framework in Takaful Business by Mortuza
TAKAFUL AS AN ALTERNATE SYSTEM OF
CONVENTIONAL INSURANCE IS BASED ON THE
CONCEPT OF BROTHERHOOD SOLIDARITY &
TRUSTEESHIP.
TAKAFUL
BROTHERHOOD SOLIDARITY TRUSTEESHIP
TAKAFUL IS BASICALLY A CONTRACT OF
COOPERATION BETWEEN AN INDIVIDUAL OR
ORGANIZATION & THE POOL OF PARTICIPANTS.
THERE ARE SEVERAL FORMS OF CONTRACT THAT
GOVERN RELATIONSHIP BETWEEN THE
PARTICIPANTS AND THE OPERATORS.
HOW TAKAFUL SCHEME OPERATES ?
REGULATOR
BOARD S.S.B
OPERATOR
BROTHERHOOD SOLIDARITY FUND TRUSTEESHIP
PARTICIPANTS
RISK SHARING PROGRAMME FOR THE WELL BEING OF
THE COMMUNITY
SHARIAH GUIDELINES MUST BE FOLLOWED IN
TAKAFUL OPERATION
TAKAFUL OPERATORS BE REWARDED FOR THE
SERVICES THEY RENDER
THERE ARE SEVERAL MODELS OF TAKAFUL
OPERATION WITHIN SHARIAH FRAME WORK.
TWO SEPARATE FUNDS NEED TO BE ESTBLISHED
ASSETS NEED TO BE INVESTED AS PER SHARIAH
FRAME WORK
DISTRIBUTION OF SURPLUS NEED TO BE SPECIFIED
CAPITAL ADEQUACY NEED TO BE ASSESSED TO
MEASURE ABILITY FOR PROVIDING INTEREST FREE
LOAN
GUIDELINES BE FRAMED FOR WINDOW OPERATORS
FITNESS AND RESPONSIBILITIES OF SHARIAH
MEMBERS NEED TO BE DEFINED
GUIDE LINES NEED TO BE PROVIDED FOR SHARIAH
AUDIT.
DISCLOSURES TO PARTICIPANTS IS FORMIDABLE
PART OF TAKAFUL CONTRACT. THIS NEEDS SPECIFIC
STANDARD GUIDELINES.
PARAMETERS AND MODUS OPERANDI OF DIFFERENT
MODELS NEED TO BE DETERMINED.
TO ENSURE FAIRNESS AND TRANSPARENCY OF
TAKAFUL OPERATIONS.
TO ENSURE PARTICIPANTS LEGITIMATE INTERESTS.
TO PROTECT OPERATORS FROM MISMANAGEMENT
AND INSOLVENCY.
TO ENSURE THAT PEOPLES CONFIDENCE ON TAKAFUL
IS NOT SHAKEN.
TO ENSURE STABILITY AND ORDERLY GROWTH OF
TAKAFUL MARKET AND THE ECONOMY.
GOVERNMENT ACT & RULES
REGULATOR REGULATIONS
MARKET PLAYERS BALANCED COMPETITION
INTERMEDIARIES LICENSING & TRAINING
PARTICIPANTS CONSUMER PROTICTION
1. WHO SHOULD REGULATE?
2. WHO SHOULD BE PERMITTED TO OPERATE?
3. WHAT APPROACH SHOULD GOVERN SOLVENCY
REGULATION?
4. WHAT STEPS NEED TO BE TAKEN WHEN
OPERATORS ARE IN FINANCIAL DIFFICULTY?
5. WHAT PROTECTIONS TO BE AFFORDED TO
PARTICIPANTS OF INSOLVENT OPERATORS?
1. REGULATE PROMOTE & ENSURE GROWTH.
2. PROMOTE & DEVELOP PROFESSIONARISM .
3. REGULATE INVESTMENT OF FUNDS & FIX
MARGIN OF SOLVENCY.
4. PROTECT INTERSTS OF POLICY HOLDERS AND
OTHER STAKEHOLDERS.
5. MONITOR PERFORMANCE OF RETAKAFUL
OPERATORS.
6. ENSURE STANDARDS OF ACCOUNTING &
TRANSPARENCY OF BALANCE SHEETS.
7. PRESCRIBE CEILING FOR MANAGEMENT
EXPENSES & SALE COST.
8. SET PROCEDURE FOR GRANTING REGISTRATION,
CONVERSION, MERGER ACQUISITION & WINDOW
OPERATORS.
9. ADOPT CAPITAL ADEQUECY PRINCIPLES.
10. DETERMINE ITS ROLE IN RELATION TO
SHARIAH COMPLIANCE.
CORPORATE OFFICE
Raj Bhaban (6th Floor), Dilkusha C/A, Dhaka-1000, Bangladesh.
Tel : 88-02-9554538, 7160074, 9560889. Fax : 88-02-9564390
E-mail : plicl@bdonline.com, Web : www.primeislamilifebd.com