For Short-Term Products, Wakala or Mudaraba fees (as appropriate), to which the Participants’ Fund shall be charged, shall be determined at a maximum of 35% of the gross written takaful contributions and the revenue of participants’ investments, earned during the fiscal year. The Shareholders’ Fund shall bear all operating, general and administrative expenses of the takaful insurance operations, without charging the Participants’ Fund any expenses other than the percentage mentioned in this paragraph. The maximum Wakala fee of 35% shall include the total Commissions.
For Long-Term Products, the Company shall determine Wakala fees in line with their expense requirement analysis prepared by the Actuary. The Actuary shall have a clear role in ensuring that ‘Policyholder Reasonable Expectations’ are considered when determining the Wakala fees and that the charges of Wakala fees are not against the client’s interest.