Takaful - Tabarru’ as a Unilateral Commitment and Compensation as a Conditional Obligation
Takaful - Tabarru’ as a Unilateral Commitment and Compensation as a Conditional Obligation The concept of iltizam bi al-tabarru’ helps explain why Takaful is not simply regarded as a bilateral exchange...
Takaful - Obligatory Nature of Tabarru’ (Iltizam bi al-Tabarru’)
Takaful - Obligatory Nature of Tabarru’ (Iltizam bi al-Tabarru’) An important Shari’ah discussion in Takaful concerns the obligatory nature of tabarru’. The main question is: If a participant makes...
Takaful - Is Takaful Similar to a Lucky Draw?
Takaful - Is Takaful Similar to a Lucky Draw? Takaful may appear superficially similar to a participant-funded lucky draw because many people contribute money into a common pool while only some eventually...
Takaful - Existence of Gharar in Takaful
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Takaful - Distribution of Underwriting Surplus Is Not Allowed
Takaful - Distribution of Underwriting Surplus Is Not Allowed Another approach to the treatment of underwriting surplus is that the surplus should not be distributed at all. Under this approach, neither...
Takaful - Distribution of Underwriting Surplus Only to Participants
Takaful - Distribution of Underwriting Surplus Only to Participants Another approach to the treatment of underwriting surplus is that the surplus may be distributed to the participants only, rather than...
Takaful - Distribution of Underwriting Surplus to Participants and the Takaful Operator
Takaful - Distribution of Underwriting Surplus to Participants and the Takaful Operator An important issue in Takaful is determining who is entitled to receive the underwriting surplus that arises in...
Takaful - Role of an Actuary in Takaful
Takaful - Role of an Actuary in Takaful An actuary plays an important role in ensuring that a Takaful operation is financially sound, properly priced, adequately provided for, and fair to participants....
Takaful - Role of an Actuary in Pricing
Takaful - Role of an Actuary in Pricing Pricing is an important part of Takaful because participants normally pay their contributions in advance, at the beginning of the coverage period, before anyone...
Takaful - Collective Pricing and Risk-Weighted Pricing of Tabarru’
Takaful - Collective Pricing and Risk-Weighted Pricing of Tabarru’ The amount of tabarru’ collected from participants is important because it provides the financial resources for the Participants’ Risk...