Participation Policy

• Whereas the Company carries Takaful Insurance activities, according to the principles and rulings of Islamic Shari’a), that is based on a cooperation-based arrangement among the Participants to compensate for any damage suffered by one of them, due to the occurrence of perils that are covered under the Takaful policy held by the Participant. Such a compensation will be within the insurance amount agreed between the participant and the Company and will be donated by the participants in the form of the amounts of participation, that are paid by the Participants as lump sum, or in instalments, as well as the investment returns of such contributions.
• Whereas the Participant has agreed to deal with the Company pursuant to this form of Takaful Insurance and participate with the other Participants in the Takaful Insurance Account on cooperation basis through donating out of his Takaful contribution and its investment returns by an amount sufficient to cover the compensations or benefits, extended by the Company, on behalf of the Participants, from the Takaful Insurance Account to any of them who suffers damages resulting from any of the perils covered under this Takaful policy .
• Whereas the Participant has agreed to appoint the Company as his agent for a known fee (i.e., management agency fee) to manage the Takaful insurance operations carried out by the Company in favour of the Participants. Furthermore, the Participant has agreed that the available funds in the Takaful Insurance Account be invested by the Company in its capacity as Mudarib, and the Participants in their capacity as Rab al-Mal for a common share in the profits of Shari’a compliant investments based on unrestricted Mudaraba wherein the Mudarib is allowed to commingle the capital of Mudaraba with the Company’s equity. The Company shall, in all its activities and investments, abide by Shari’a rulings and principles, and the resolutions and the resolutions of the Shari’a Supervisory Committee
• Whereas the Participant has agreed that the amount of management agency fee, which was deducted from the Takaful contribution paid by the Participant, and the common share of the Company (in its capacity as Mudarib) in the investment profits have been determined, as clearly disclosed in publicized statement available at the head office of the Company and its branches (to be approved by the Shari’a Supervisory Committee, before the start of each financial year and to be applied to all the Takaful polices concluded during such year).
• Notwithstanding that the compensations or benefits given to the Participant, or the beneficiary, as identified by the Participant, or to the affected third party, are paid by the Company from the Takaful Insurance Account, pursuant to the Takaful insurance policy, for the avoidance of doubt all liabilities pertaining to such payments are exclusively of the Takaful Insurance Account even if the payment is attributed to the Company in any form or manner.
• The Participant has agreed to delegate the Shari’a Supervisory Committee to adopt a mechanism that regulates the distribution of the Surplus in the Takaful Insurance Account realized in any financial year, (after the deduction of all the necessary provisions, expenses, and reserves), the mechanism being ratified by the Company’s Board of Directors. Similarly the Participant has also consented to thesettlement of any (Qard Hasan) that may have been given by the Company to cover deficits in the Takaful Insurance Account, from Surpluses in the latter account in subsequent financial years.
• Whereas the Participant has agreed to delegate the Company in all matters related to the operations of primary Takaful Insurance, the Participant has also agreed that the Company may enter into Retakaful/Reinsurance agreements with other relevant parties (Companies).
• Further, the Participant has agreed that upon the liquidation of the Company, all of the allocations related to the Takaful Insurance Account and the accumulated surpluses will be disbursed for the charitable causes post settling all rights and obligations due on the Takaful Insurance Account.

Now, therefore the intent of the Company and the Participant has converged with the offer and acceptance exchanged in this Shari’a Preamble that constitutes an integral part of the Takaful insurance policy/ policies, which are contracted for (or any previous or subsequent agreement and understanding between them) and complementary thereto and to enter this Takaful insurance policy/ policies under the terms and exclusions therein. With an interpretation of the concepts, terms and others contained therein, according to what was stated in this Shari’a Preamble.