BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A whole amount of paid contributions.
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The paid contributions and share of profits made out of the cumulated paid premiums.
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The paid contributions, share of profits made out of the cumulated paid contributions and outstanding tabarru’ contribution.
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The share of profits made from the cumulated paid contributions.
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Detailed explanation-1: -Family benefits – if a participant paid life Takaful premiums for a 10-year policy period and died within the policy period, the benefits would be distributed among his beneficiaries. Other benefits include those relating to permanent disabilities and hospital benefits.
Detailed explanation-2: -A takaful contract must be based on principles of co-operation, protection and mutual responsibility and must avoid acts of interest (riba), gambling (al-maisir) and uncertainty (al-gharar).
Detailed explanation-3: -Takaful can be structured in the following forms: MUDARABA (PARTNERSHIP IN PROFIT)-The contractual relationship between Participants and the Takaful Fund Manager is partners in profit.
Detailed explanation-4: -The Underwriting Surplus is the excess in the Tabarru‘ Fund after deducting all claims payable and reserves. On the other hand, there will be no Underwriting Surplus if there is no excess in the fund after deducting all claims payable and reserves.