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Article (1) Terminology Definitions

  1. The following words and expressions wherever used herein shall have the meanings ascribed thereto, unless the context requires otherwise:
    Law
         		The Federal Law No. (6) of 2007 concerning the establishment of the Insurance Authority and the regulation of the insurance business.
     
    Implementing regulations
         		The Implementing regulations for the Federal Law No. (6) of 2007 issued under the resolution of the Insurance Authority’s Board of Directors No. (2) of 2009.
     
    Authority or IA
         		The Insurance Authority established under the provisions of the Law.
     
    Board
         		The Insurance Authority’s Board of Directors.
     
    Chairman
         		The Chairman of the Insurance Authority’s Board of Directors.
     
    Director General
         		The Director General of the Insurance Authority.
     
    Company
         		The Takaful Insurance company which is incorporated and practicing its business in accordance with the provisions of the Law, the Implementing Regulations and these Regulations, and whose all operations are compatible with the Islamic Shariah provisions.
     
    Takaful Insurance
     

    A collective contractual arrangement aiming at achieving cooperation among a group of participants against certain risks whereby each participant pays certain subscription fees to form an account called the participants' account through which entitled compensations are paid to the member in respect of whom the risk has realized. The Takaful Insurance company shall manage this account and invest the funds collected therein against certain remuneration.

    All transactions of the Takaful Insurance company should be compatible with the Islamic Shariah provisions.

    Shariah Supervision Committee
         		The committee formed within the company to provide opinion on the transactions of the company and their conformity with the Islamic Shariah provisions.
     
    Shariah Controller
         		A company employee appointed by the company's board of directors based on the recommendation of the Shariah Supervision Committee to audit the extent and manner in which the company's different functions implement the Shariah Supervision Committee’s resolutions and opinions.
     
    Supreme Fatwa and Shariah Supervision Committee
         		A Committee formed within the Insurance Authority and exercises the authorities and powers provided for herein and in the resolutions issued thereunder by the Authority.
     
    Participant
         		An individual holding a participation membership policy and a Takaful Insurance contract, who undertakes to regularly pay the subscription fees, and who, and his legal heirs or assignees, where assignment is allowable, shall have the right to receive compensations or benefits provided by the participants account within the company.
     
    Contribution
         		The consideration which the participant undertakes to pay on basis of the donation (Tabarru’) commitment for his participation in Takaful Insurance account with the company to compensate the damages or pay the benefits to the eligible beneficiary.
     
    Participation Membership Policy
         		The policy containing key fundamentals and principles of Takaful Insurance applied by the company in its relation with the participants and which should be accepted by the participant upon participation.
     
    Takaful Insurance Policy
         		The policy concluded between the company and the participant and containing the contract terms and conditions, the rights and obligations of both parties or the beneficiaries of the Takaful Insurance as well as any endorsement to this policy.
     
  2. Save as provided for in item (1) above, the words and expressions included herein shall have the same meaning assigned thereto under Article (1) of the Law.