The following words and expressions wherever used herein shall have the meanings ascribed thereto, unless the context requires otherwise:
Islamic Shari’ah Provisions:
The resolutions, Fatwas, regulations and standards issued by the Higher Shari’ah Authority in relation to activities and businesses of the Company ("HSA’s Resolutions"),
The resolutions and Fatwas issued by the Internal Shari’ah Supervision Committee of the respective Company, in relation to activities and businesses of such Company ("ISSC’s Resolutions"), provided that they do not contradict HSA’s Resolutions.
Contribution: The consideration which the Participant undertakes to pay on basis of the donation (Tabarru’) commitment for his/her subscription in Participants’ Account with the Company in order to compensate the damages or pay the benefits to the eligible beneficiary.
Takaful Insurance: A collective contractual arrangement aiming at achieving mutuality and cooperation among a group of Participants against certain risks, whereby each Participant pays certain Contribution to form an account called the Participants’ Account. This account is used for paying the entitled compensations and/or benefits when risk is realized, in accordance with the terms and conditions. The Company manages this account and invests its funds. All transactions of the Takaful Insurance Company should be in accordance with the Islamic Shari’ah Provisions.
Participants’ Account: An account created by the Company to deposit the Contribution amounts, the returns from its investment, and the revenues from the Takaful Reinsurance (Retakaful). The personal capacity implications should be attributed to this account and it should have financial independency from the Company. This account shall be responsible for compensating Participants, beneficiaries and affected third parties, in accordance with the terms of the Takaful Insurance Policies. The Wakala fees and the amounts of compensation and/or benefits are paid to the Participants from this account, in addition to the relevant allocations or reserves, as determined by the Central Bank. The Company must manage the account on behalf of the Participants by Wakala and it must represent it in all matters related thereto. This account is termed as (Risk Coverage Account) in family Takaful insurance.
Takaful Insurance Accounts: It covers all the Company’s accounts, including Participants’ Accounts and/or Participants’ Accounts for family Takaful insurance, and shareholders’ accounts.
Company/ Companies: The Takaful Insurance Company, which is incorporated and practices its business in accordance with the provisions of the Law, the Executive Regulation and this Regulation, and whose carried out businesses and activities are in accordance with the Islamic Shari’ah Provisions.
Law: The Federal Law No. (6) of 2007 on Organization of Insurance Operations and its amendments.
Executive Regulation: The executive regulation for the Federal Law No. (6) of 2007 issued under the resolution of the Insurance Authority’s Board of Directors No. (2) of 2009.
Internal Shari’ah Supervision Committee: A body appointed by a Company, comprised of scholars specialized in Islamic financial transactions, which independently supervises transactions, activities, and products of the Company and ensure its compliance with Islamic Shari’ah in all its objectives, activities, operations, and code of conduct.
Participant: An individual that holds a Participation Membership Policy and a Takaful Insurance Policy, who undertakes to regularly pay the Contribution, and who, or his/her legal heirs or assignees, where assignment is allowable, shall have the right to receive compensations or benefits provided by the Participants’ Account.
Central Bank: Central Bank of the United Arab Emirates.
Higher Shari’ah Authority: An authority that exercises the mandates and authorities stipulated in this Regulation and the notices issued by the Central Bank.
Participation Membership Policy: The policy containing key bases and principles of Takaful Insurance applied by the Company to govern its relation with the Participants, which should be accepted by the Participant upon subscription.
Takaful Insurance Policy: The policy concluded between the Company and the Participant that contains the contract’s terms and conditions, the rights and obligations of the parties or the beneficiaries of the Takaful Insurance as well as any endorsement to this policy.
4.2
Save as provided for in Article (4.1), the words and expressions included herein shall have the same meaning assigned thereto under Article (1) of the Law.