Important terms in Takaful
Takaful portfolio is a fund that contains contributions of the participants/contributors that they donate, from which eligible Takaful participants’ benefits are deducted after deducting related fees and expenses
Subscriber/contributor is a real or legal personality, who donates to Takaful portfolio in return of gaining access to the Takaful insurance coverage of the portfolio.
Subscription/contribution fee is the amount of money paid by the contributor to the Takaful portfolio as a fee to join the Takaful program in accordance with the provisions and terms of Takaful document throughout the Takaful coverage period
Agency fee is the amount of money owed to the company in return of its management of Takaful operations on their behalf. At the start, it is deducted from the subscription fee.
Speculation is a partnership between the money owner and worker (speculator), who handles trading the money entrusted to him on the condition that the profit between them is determined according to their mutual agreement, while loss is on the capital.
Deductible is the amount to be borne by the participant/contributor out of the coverage amount of any/every approved claim in accordance with what is specified in document table.
Surplus is the sum of the remainder in Takaful portfolio out of the total amount of subscription fees paid by participants plus profits after the company's fulfillment of its receivables as an agent on their behalf, in managing of insurance operations, its share of realized investment profits, payment of due coverage amounts to the participants, payment of Takaful returning amounts and sparing Takaful portfolio reserve.
Coverage amount is the amount that the Takaful portfolio commits to pay to the document holder at the time of incident/event, as specified by the document table.
Document is the contract between the contributor/subscriber and Takaful portfolio which is represented in this contract by the company, which specifies Takaful program terms and provisions, and the commitment of both the Takaful portfolio and contributor/subscriber.
Loan is to give money to those who benefit from it as a form of benevolence, on the condition that they repay the same amount.