MANAGEMENT

Detailed explanation-1: -Unlike conventional insurance, which risk is transferred from the insured to the insurer, the Takaful Insurance mutual risk is shared amongst the participants. Takaful operations are based upon the principles of mutuality, whereby each participant makes a donation to a Takaful fund.

Detailed explanation-2: -A takaful company will ensure that a risk management process is established, both discrete and integrated, to continually manage risks. The Risk Management Process will consist of: 1) Risk Identification and Assessment; 2) Risk Measurement; 3) Risk Management; and 4) Risk Monitoring.

Detailed explanation-3: -Risk management is of vital importance in Islam and Takāful provides a way to manage risks in business according to Sharī’ah principles. This research paper attempts to identify various types of risks involved in Takāful business that affect operational and investment functions of Takāful operators across the globe.

Detailed explanation-4: -The core principles of Takaful are: Members cooperate among themselves for their common good. Every member pays a subscription to help those members that might need assistance. Divide losses and liabilities among the members through a pooling system. Not to derive advantage at the cost of others.