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  • Takaful Insurance Accounts

    • Article (21) Participants’ Accounts

      The Companies practicing all types and classes of Takaful Insurance must undertake to adopt complete separation between the personal Takaful Insurance business on the one hand, and the property and liability Takaful Insurance business on the other hand, in terms of technical, financial, and administrative aspects. In particular, there should be two accounts (or more) for the Participants completely separated per the type of insurance practiced by the Company.
      The funds available in each account must be allocated to meet the account’s liabilities and management expenses.

    • Article (22) The Participants’ Accounts for Family Takaful Insurance

      The Contributions in the family Takaful insurance must be divided into two accounts:

      1. Investment Account: to which the portion of Contributions allocated for investment in this type of Takaful Insurance must be transferred.
      2. Risk Coverage Account: to which the portion of Contributions allocated for risk coverage in this type of Takaful Insurance must be transferred.

    • Article (23) Accounts for Other Takaful Insurance Types and Classes

      23.1One or more accounts called (Participants’ Account) must be opened with the Company per the non-family Takaful insurance types and classes. The accrued Contributions must be recorded in such account(s), in addition to the investment revenues realized from investing the funds accumulated in the said account(s).
      23.2Due compensations and benefits must be paid from the Participants' Account in accordance with the terms and conditions of Takaful Insurance Policies.
      23.3Inputs and outputs of such account(s) must be determined in accordance with the applicable accounting rules.
      23.4The assets and liabilities of the Participants’ Account should be completely separate from the Company's assets and liabilities, and should not include the deposit required in accordance with Article (42) of the Law.