Takaful operators shall charge fees either based on a Model (Wakala fees as a percentage of total subscriptions and Mudaraba fees as a percentage of investment income) or only a Wakala Model (Fees charged as a percentage of surplus income from underwriting and investment Takaful).
The model and the limits defined by each Takaful operator and any subsequent changes in the model to be adopted by a Takaful operator shall be approved by the Shari’a Committee of the Takaful operator and the Authority.
Wakala and Mudaraba fees that are charged to the participants account are determined as follows:
a) A percentage not exceeding (35%) of gross written contributions and participants investments revenues accrued during the financial year. The shareholders account should bear all operational, administrative and general expenses for Takaful insurance business. The participants account shouldn’t bear any expenses other than the percentage mentioned in this paragraph.
b) The Authority shall determine the percentage for the saving family Takaful as per the actuarial rules and basis.
c) All Takaful insurance Companies should align its operations according to the provisions mentioned in subparagraphs (a) and (b) of this paragraph from the next year of the year in which of these regulations were published.
The Company may use up to 10% of the annual Insurance or Underwriting Surplus for participants’ funds after approval of the Shari’a Committee and the Authority.
In exceptional circumstances, the Company may use up to 20% of the annual Insurance or Underwriting Surplus for participants’ funds if there is actuarial justification for a percentage higher than 10%, as noted in paragraph (4), and after approval of the Shari’a Committee and the Authority.
Disclosure shall be made in the financial statements of the party that manages investment of participants’ funds and the shareholders’ funds and the remuneration it receives