Types of Takaful Business

Question 1

TAKAFUL BUSINESS DIVISION

Answer 1

1. Management perspective
   a) Cooperative/Mutual takaful
   b) Takaful Tijari/Commercial Takaful

2, Types of Business

a) Family Takaful
b) General Takaful

Question 2

ISLAMIC CONTRACTS IN TAKAFUL - TAKAFUL OPERATOR

Answer 2

1. Wakalah - Takaful Operator act as an agent to manage the takaful on behalf of Takaful Participants
2. Mudharabah - Takaful Operator act as mudharib that manage and invest the takaful fund
3. Ju’alah - Takaful Operator receives commission based on their performance
4. Wadiah - Takaful Operator safeguard the takaful fund

Question 3

FAMILY TAKAFUL VS GENERAL TAKAFUL

Answer 3

Family Takaful

• Maturity: Long term; more than 1 year
• Renewable: Automatically until maturity
• Account: Participant Account and Participant Special Account

General Takaful

• Maturity: Short term; less than 1 year
• Renewable: Yearly renewable
• Account: General Takaful

Question 4

WHAT ARE THE OBJECTIVES OF FAMILY TAKAFUL?

Answer 4

1. To save regularly over a fixed period of time
2. To earn investment returns in accordance with Islamic principles
3. To obtain coverage in the event of death prior to maturity from a mutual aid scheme