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Article (9) Takaful Insurance Participation Policy

  1. The company shall develop this policy to offer it to those who wish to participate in the participants’ account for any type or class of Takaful Insurance. The policy must be signed by both parties and a copy should be given to the participant. The following shall be taken in consideration when preparing the policy:
     
    1. This policy shall be separate from the Takaful Insurance policy, which must be consistent with the principles included in the participation policy;
       
    2. The policy shall address the bases and rules governing the Takaful relationship between the participant and the company, including the legal nature of this relationship;
       
    3. The policy shall elaborate that payments made by the participant are made as donation (Tabarru’) obligation;
       
    4. The policy shall name the account in which the participant will participate;
       
    5. The policy shall disclose the company’s commitment to provide goodwill loan (Qardh Hasan) where the participants’ account assets are insufficient to repay the obligations incurred on such account;
       
    6. The amount of Wakalah fees due to company and the method of its calculation, as well as the share of the company from the Mudaraba proceeds or Wakalah fees for investing the participants’ account and the method of calculating such proceeds or fees; and
       
    7. Information on the company's policy for investing the portions allocated for investment from the contributions provided such policy is consistent with the Islamic Shariah provisions.

     
  2. The policy mentioned in the previous clause shall be submitted to the Company's Shariah Supervision Committee for approval before offering it to those concerned.
     
  3. The said policy shall then be presented to the Insurance Authority for approval. After soliciting the opinion of the Supreme Fatwa and Shariah Supervion Committee, the Insurance Authority may object to the policy contents if incorporating any provisions in contrary to legal provisions or Islamic Shariah provisions, or if containing an explicit prejudice to the interests of the participants.
     
  4. The company must maintain a record of Takaful Insurance participation policies. Such record shall be subject to inspection and auditing by the Shariah Supervision Commitee and the Insurance Authority.