Islamic Fiqh Academy Resolution 1985 Quiz
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Questions and Answers

In the Islamic framework, property rights can be described as:

  • Incompletely limited to only physical property
  • Subject to infinite acquisition by individuals without any restrictions
  • Belonging only to individuals and firms
  • Bestowed upon all elements of creation by Allah (SWT) (correct)

    • In Islamic business practices, what is the responsibility of an individual regarding property?

  • To ensure it is acquired through lawful means and not used for prohibited purposes (correct)
  • To waste or squander it for personal gain
  • To alter it as needed, even if it harms the neighbour
  • To forfeit ownership rights for personal convenience

    • How are property rights of individuals and firms approached in the Islamic framework?

  • Property earned by the firm is subject to similar rules of sharing and prohibition on wasting as individual property (correct)
  • Individuals have no claim on property rights within a firm
  • The firm accrues property rights separately from individuals
  • Firms can acquire property without any responsibilities attached

    • What is emphasized in Islamic business practices regarding contracts?

    <p>Status and virtue supersede contract terms</p> Signup and view all the answers

    What is the objective of a firm in Islam regarding property rights?

    <p>To maintain a balance between the rights of individuals, society, and the state</p> Signup and view all the answers

    What does Islam promote in terms of human relationships, based on the text?

    <p>Universal brotherhood and welfare for all</p> Signup and view all the answers

    What fundamental human rights does Islam grant to individuals?

    <p>Right to privacy and right to justice</p> Signup and view all the answers

    How does Islam view the treatment of subordinates by those in authority, as per the text?

    <p>Advocates for fair treatment and assistance in their work</p> Signup and view all the answers

    Based on the text, what duty does a person have towards their dependents according to Islamic teachings?

    <p>To be benevolent and put resources to proper use</p> Signup and view all the answers

    In the context of Takaful firms, why is Corporate Social Responsibility (CSR) relevant according to the text?

    <p>To uphold Islamic principles of welfare for all stakeholders</p> Signup and view all the answers

    What is the sacred duty related to contracts and governance in Islamic business practices?

    <p>To fulfill contractual obligations with the community and society</p> Signup and view all the answers

    In Islamic corporate governance, what becomes the fiduciary duty of managers?

    <p>To manage the firm as a trust for all stakeholders, not just owners</p> Signup and view all the answers

    What is the moral, social, and legal foundation for recognizing and enforcing obligations in implicit contracts in Islamic business practices?

    <p>Preserving the property rights of others</p> Signup and view all the answers

    What is the objective of a firm according to Islamic principles?

    <p>To act as a trust for all stakeholders, not just owners</p> Signup and view all the answers

    In Islamic business practices, what role does a shari’ah board play?

    <p>Looking after the interest of all stakeholders, not just shareholders</p> Signup and view all the answers

    Which practice is prohibited according to the Fiqh Academy Resolution 1985?

    <p>Commercial insurance contract</p> Signup and view all the answers

    What is the alternative contract recommended in the Fiqh Academy Resolution for Islamic dealings?

    <p>Takaful contract</p> Signup and view all the answers

    What did the Fiqh Academy Takaful resolution fail to specify?

    <p>The contract of choice for Takaful operations</p> Signup and view all the answers

    In Islamic law, what has resulted in variations of Takaful models throughout the industry?

    <p>Pluralism of Fatwas</p> Signup and view all the answers

    What is the foundation of the cooperative insurance contract (Takaful) according to Islamic principles?

    <p>Charitable donation and Sharia compliant dealings</p> Signup and view all the answers

    What is the main difference between the objective of a firm in Islamic economics compared to conventional economics?

    <p>Contributing positively to society while abiding by ethical values</p> Signup and view all the answers

    What does Corporate Social Responsibility (CSR) entail in Islamic business practices?

    <p>Treating employees fairly and maintaining a positive Islamic image</p> Signup and view all the answers

    According to Shariah principles, what is a core aspect of a firm's fiduciary duty?

    <p>Ensuring fair treatment of stakeholders and maintaining ethical practices</p> Signup and view all the answers

    How does Takaful operate within the Islamic economic system?

    <p>By supporting community projects and solving social problems</p> Signup and view all the answers

    In the context of property rights and governance in an Islamic framework, what is prohibited?

    <p>Oppressing others through business activities</p> Signup and view all the answers

    In the Islamic economic system, a Takaful Company can be viewed as a nexus-of-contracts type with the objective of:

    <p>Minimizing transaction costs to maximize profits</p> Signup and view all the answers

    According to the stakeholders model in Islam, who has the right to participate in corporate decisions that affect them?

    <p>All stakeholders</p> Signup and view all the answers

    What is the fiduciary duty of managers in the stakeholders model in Islamic business practices?

    <p>Serve the interests of all stakeholder groups</p> Signup and view all the answers

    The objective of a firm in Islam, based on the stakeholders model, is primarily focused on:

    <p>Promotion of interests of all stakeholders</p> Signup and view all the answers

    What do Takaful Companies in an Islamic economic system aim to achieve through contracts and interactions with parties, ensuring no violation of property rights?

    <p>Maximizing profits and returns while respecting property rights</p> Signup and view all the answers

    What is emphasized in the literature of sociological economics?

    <p>Creating an environment of social justice</p> Signup and view all the answers

    What do experts believe is critical for well-functioning enterprises, as mentioned in the text?

    <p>Worker's attachment to the organization</p> Signup and view all the answers

    In Islamic business practices, what is the relationship between an entrepreneur/producer and workers, as per the text?

    <p>Trustee-brother</p> Signup and view all the answers

    What is highlighted as enhancing the efficiency of economic agents in the text?

    <p>Loyalty and honesty</p> Signup and view all the answers

    As per Islamic teachings, what reward does a servant get for observing both Allah's right and his master's right?

    <p>Double reward</p> Signup and view all the answers

    What is a servant considered in Islamic business practices according to the text?

    <p>A guardian of his master's property</p> Signup and view all the answers

    What has a high economic cost?

    <p>Corruption</p> Signup and view all the answers

    'Woe to those who are dishonest in weighing and measuring' - What does this statement imply according to the text?

    <p>'Woe' signifies condemnation for dishonesty</p> Signup and view all the answers

    'Those saved from the covetousness of their own souls; they are the ones who achieve prosperity.' What quality is described in this statement from chapter 64:16?

    <p><strong>Honesty</strong></p> Signup and view all the answers

    In the Non-Surplus Sharing Mudarabah Model, what makes it difficult as a stand-alone Family/Individual Life Takaful operation?

    <p>Charging of expenses to participants fund</p> Signup and view all the answers

    What characteristic of the General/Group Takaful- One Year Plans makes it different from other models?

    <p>Fee-driven contract</p> Signup and view all the answers

    How is the Mudarabah Model different when the operator shares in the surplus?

    <p>Operator charges no fees</p> Signup and view all the answers

    What is the main source of potential commercial profit for the Investment Profits in Takaful?

    <p>Build-up of reserves and savings funds</p> Signup and view all the answers

    Which factor is highlighted in the text when discussing Expense Handling in Takaful Models?

    <p>Charging expenses to participants pool</p> Signup and view all the answers

    What type of contract is deemed prohibited according to the Sharia, as per the Fiqh Academy Resolution 1985?

    <p>Commercial insurance contract</p> Signup and view all the answers

    Which model of Takaful operation did the Fiqh Academy Takaful resolution fail to specify?

    <p>Mudarabah model</p> Signup and view all the answers

    In the Islamic framework, which contract is founded on the basis of charitable donation and Sharia compliant dealings, as an alternative to commercial insurance?

    <p>Cooperative insurance contract</p> Signup and view all the answers

    What is the principle underlying the cooperative insurance contract (Takaful) according to Islamic principles?

    <p>Non-surplus sharing principle</p> Signup and view all the answers

    Which element has resulted in variations of Takaful models throughout the industry within Islamic law?

    <p>Pluralism of Fatwas</p> Signup and view all the answers

    What is the primary issue debated by Sharia scholars when considering the application of a Mudarabah contract in Takaful underwriting operations?

    <p>Surplus sharing</p> Signup and view all the answers

    In the context of different Takaful models, how do some models treat expenses?

    <p>Charge participants' funds for all expenses</p> Signup and view all the answers

    What distinguishes surplus from profit in the context of a Mudarabah contract?

    <p>Creation of value in excess of provided capital</p> Signup and view all the answers

    How do Mudarabah surplus sharing models handle investment profits in Takaful?

    <p>Share all investment profits with participants</p> Signup and view all the answers

    What is the key factor that determines whether a Mudarabah contract can be applied to investment profits in Takaful underwriting operations?

    <p>Acceptance by Sharia scholars</p> Signup and view all the answers

    In the Mudarabah Model, who is allowed to share in the original capital provided?

    <p>No one is allowed to share in the original capital</p> Signup and view all the answers

    Which of the following fees are part of Family Takaful - Long Term Plans/Group Takaful?

    <p>Tabar’ru Individual Savings A/C</p> Signup and view all the answers

    Which statement best describes the fee handling in Bank al Jazira Wakala Model?

    <p>Fees are charged only if a product is sold</p> Signup and view all the answers

    What happens in Jordan Islamic Insurance regarding fixed expense fees for one-year contracts?

    <p>Fees are reimbursed if expenses exceed the fixed fee</p> Signup and view all the answers

    How are expenses handled in Takaful models like Bank al Jazira Wakala Model?

    <p>Operator solely bears all expenses</p> Signup and view all the answers

    What is the primary objective of a Takaful company in the Islamic economic system?

    <p>Minimizing transaction costs</p> Signup and view all the answers

    In the stakeholders model in Islam, what is the fiduciary duty of managers?

    <p>Promote the interests of all stakeholders</p> Signup and view all the answers

    What concept does Islam emphasize in terms of investment profits in Takaful?

    <p>Reasonable profit/just profit</p> Signup and view all the answers

    What do Takaful companies aim to achieve through contracts and interactions with parties within the Islamic economic system?

    <p>Minimize transaction costs without violating property rights</p> Signup and view all the answers

    What is the responsibility of a Takaful company in handling expenses within its model?

    <p>Removing hardships related to expenses</p> Signup and view all the answers

    What is the key feature of a Takaful model?

    <p>Cooperative Risk-sharing</p> Signup and view all the answers

    In a Takaful model, what is the role of the operator in surplus sharing?

    <p>Shares surpluses with participants</p> Signup and view all the answers

    What is the primary focus of Investment Profits in Takaful operations?

    <p>Ensuring Sharia compliance</p> Signup and view all the answers

    How are expenses typically handled in Takaful Models?

    <p>Shared equitably among all participants</p> Signup and view all the answers

    What type of plan is commonly seen in General/Group Takaful operations?

    <p>One-year plans that are renewable annually</p> Signup and view all the answers

    What is a key characteristic of the Non-Surplus Sharing Mudarabah Model?

    <p>No shared profits with participants</p> Signup and view all the answers

    What sets the General/Group Takaful- One Year Plans apart from other models?

    <p>Premiums are paid annually</p> Signup and view all the answers

    In the Mudarabah Model, what happens when the operator shares in the surplus?

    <p>Operator's account accumulates surplus</p> Signup and view all the answers

    What is the main source of potential commercial profit for Investment Profits in Takaful?

    <p>Equity and debt investments</p> Signup and view all the answers

    Which factor is crucial when discussing Expense Handling in Takaful Models?

    <p>Efficient management of funds</p> Signup and view all the answers

    What is a characteristic of the Non-Surplus Sharing Mudarabah Model?

    <p>Operators do not contribute to the fund</p> Signup and view all the answers

    What distinguishes the General/Group Takaful- One Year Plans from other models?

    <p>Annual renewal of policies</p> Signup and view all the answers

    What is a key aspect of Investment Profits in Takaful?

    <p>Sharia-compliant equity and debt investments</p> Signup and view all the answers

    When discussing Expense Handling in Takaful Models, what is essential?

    <p>Efficient use of funds for operations</p> Signup and view all the answers

    In the Non-Surplus Sharing Mudarabah Model, what does the operator typically not do?

    <p>Provide set-up capital</p> Signup and view all the answers

    In a Takaful model, how are expenses typically handled?

    <p>Shared between the participants and the operator</p> Signup and view all the answers

    What happens in the Mudarabah Model when the operator shares in the surplus?

    <p>The surplus is shared as per agreed proportions</p> Signup and view all the answers

    What distinguishes General/Group Takaful-One Year Plans from other models?

    <p>They do not involve direct expenses</p> Signup and view all the answers

    In the Non-Surplus Sharing Mudarabah Model, what typically happens to the surplus?

    <p>Shared between capital provider and operator</p> Signup and view all the answers

    How are investment profits usually handled in Takaful underwriting operations?

    <p>Shared between the operator and participants</p> Signup and view all the answers

    What is the primary issue debated by Sharia scholars when considering applying a Mudarabah contract in Takaful underwriting operations?

    <p>The treatment of surplus and profit</p> Signup and view all the answers

    In the Mudarabah model, what is accepted to be shared as part of investment profits?

    <p>Tabar'ru contributions</p> Signup and view all the answers

    Which aspect makes the Non-Surplus Sharing Mudarabah Model difficult as a stand-alone Family/Individual Life Takaful operation?

    <p>Lack of surplus sharing</p> Signup and view all the answers

    What differentiates the General/Group Takaful- One Year Plans from other models in terms of expense handling?

    <p>Direct charge to participants' funds</p> Signup and view all the answers

    How does the Surplus Sharing Model handle surplus in comparison to profit?

    <p>Only surplus is shared after deducting claims and expenses</p> Signup and view all the answers

    What distinguishes the Non-Surplus Sharing Mudarabah Model from other Takaful models?

    <p>Charging expenses to participants' funds</p> Signup and view all the answers

    What is a key characteristic of the General/Group Takaful-One Year Plans in contrast to other models?

    <p>One-year contract duration</p> Signup and view all the answers

    In the context of the Mudarabah Model, what happens if the operator shares in the surplus?

    <p>The model becomes non-compliant with Shariah principles</p> Signup and view all the answers

    What factor is crucial when discussing expense handling in Takaful Models?

    <p>Minimizing operational expenses</p> Signup and view all the answers

    What aspect makes the Non-Surplus Sharing Mudarabah Model difficult as a stand-alone Family/Individual Life Takaful operation?

    <p>Heavy reliance on reserves</p> Signup and view all the answers

    What is the core aspect of expense handling in Takaful models like cooperative insurance?

    <p>Charging expenses to the participants pool</p> Signup and view all the answers

    In Takaful operations, what is the main source of potential economic profit?

    <p>Investment profits</p> Signup and view all the answers

    In the Mudarabah model, who shares in the surplus generated from the investment profits?

    <p>Operators</p> Signup and view all the answers

    What sets the General/Group Takaful- One Year Plans apart from other Takaful models?

    <p>Single year coverage</p> Signup and view all the answers

    In the Non-Surplus Sharing Mudarabah Model, what typically does the operator refrain from doing?

    <p>Sharing surplus with participants pool</p> Signup and view all the answers

    How are expenses typically handled in Takaful models?

    <p>Expenses are taken care of by the policyholders account</p> Signup and view all the answers

    What is a key aspect of Investment Profits in Takaful?

    <p>Investment Profits are Sharia compliant and interest-free</p> Signup and view all the answers

    In the Mudarabah Model, what happens when the operator shares in the surplus?

    <p>The surplus goes to the operator's account</p> Signup and view all the answers

    What sets the General/Group Takaful- One Year Plans apart from other models?

    <p>They operate on a one-year renewable basis</p> Signup and view all the answers

    What is a key characteristic of the Non-Surplus Sharing Mudarabah Model?

    <p>It does not distribute any surplus to participants</p> Signup and view all the answers

    What is a key feature of the General/Group Takaful-One Year Plans?

    <p>No surplus sharing</p> Signup and view all the answers

    In the Non-Surplus Sharing Mudarabah Model, the operator typically does not:

    <p>Share investment profits with participants</p> Signup and view all the answers

    How are expenses typically handled in Takaful Models?

    <p>Expenses are covered by the participants</p> Signup and view all the answers

    What happens in the Mudarabah Model when the operator shares in the surplus?

    <p>The operator receives a significant portion of the surplus</p> Signup and view all the answers

    Regarding Expense Handling in Takaful Models, what is essential?

    <p>Ensuring transparent management of expenses</p> Signup and view all the answers

    What is a key aspect of the Non-Surplus Sharing Mudarabah Model?

    <p>Operators never share in the surplus generated</p> Signup and view all the answers

    In terms of Investment Profits in Takaful, what is the primary focus?

    <p>Generating profits for shareholders</p> Signup and view all the answers

    Which practice is NOT typically associated with the Mudarabah Model when the operator shares in the surplus?

    <p>Receiving fixed salaries</p> Signup and view all the answers

    What makes it challenging for the Non-Surplus Sharing Mudarabah Model to operate as a stand-alone Family/Individual Life Takaful operation?

    <p>Lack of surplus distribution mechanism</p> Signup and view all the answers

    Which type of plan is commonly observed in General/Group Takaful operations?

    <p>'One year' plan</p> Signup and view all the answers

    How are expenses typically handled in the context of different Takaful models?

    <p>Expenses are covered solely by policyholders' contributions</p> Signup and view all the answers

    What is the main determinant of whether a Mudarabah contract can be applied to investment profits in Takaful underwriting operations?

    <p>'Profit-sharing' mechanism</p> Signup and view all the answers

    What is crucial when discussing Expense Handling in Takaful Models?

    <p>'Transparency' in expense disclosures</p> Signup and view all the answers

    What do Takaful companies aim to achieve through contracts and interactions within the Islamic economic system?

    <p>'Ensuring no violation' of property rights</p> Signup and view all the answers

    What do Non-Surplus Sharing Mudarabah Model operators typically avoid?

    <p>Sharing surplus generated.</p> Signup and view all the answers

    In the context of Takaful models, what is a key characteristic of the Non-Surplus Sharing Mudarabah Model?

    <p>Surplus remains with the operator</p> Signup and view all the answers

    What distinguishes the General/Group Takaful- One Year Plans from other models?

    <p>Clear separation between participants and operator</p> Signup and view all the answers

    In the Mudarabah Model, what happens if the operator shares in the surplus?

    <p>Operator retains the surplus entirely</p> Signup and view all the answers

    What is the primary focus when considering Investment Profits in Takaful underwriting operations?

    <p>Applying Mudarabah contracts</p> Signup and view all the answers

    When discussing Expense Handling in Takaful Models, what is a common practice?

    <p>Clear transparency on fee structures</p> Signup and view all the answers

    What sets the Non-Surplus Sharing Mudarabah Model apart from other models in terms of expense handling?

    <p>Not charging expenses to the participants' funds</p> Signup and view all the answers

    In General/Group Takaful-One Year Plans, what is a key characteristic that distinguishes it from other models?

    <p>One-year duration of plans</p> Signup and view all the answers

    How are investment profits typically handled in the Mudarabah Model with Operator Sharing in Surplus?

    <p>Shared equally between operator and participants</p> Signup and view all the answers

    What is a primary concern when discussing Expense Handling in Takaful Models?

    <p>Charging high fees to the participants fund</p> Signup and view all the answers

    What aspect makes Investment Profits in Takaful particularly challenging?

    <p>Ensuring commercial profit without high expenses</p> Signup and view all the answers

    In the context of Takaful operations, what aspect does the Non-Surplus Sharing Mudarabah Model primarily focus on?

    <p>Expense management</p> Signup and view all the answers

    What is the primary concern of Sharia scholars regarding the application of a Mudarabah contract to Takaful underwriting operations?

    <p>The distribution of surplus to participants</p> Signup and view all the answers

    What distinguishes the General/Group Takaful- One Year Plans from other models in terms of expense handling?

    <p>Fixed expense fees</p> Signup and view all the answers

    How do different Takaful models handle expenses differently?

    <p>By charging only the participants' funds</p> Signup and view all the answers

    When the operator shares in the surplus in the Mudarabah Model, what typically happens?

    <p>Investment profits increase</p> Signup and view all the answers

    What differentiates the General/Group Takaful- One Year Plans from other models in terms of expense handling?

    <p>Charging participants' funds for expenses</p> Signup and view all the answers

    What is the primary focus when discussing Investment Profits in Takaful underwriting operations?

    <p>Optimizing returns on investments</p> Signup and view all the answers

    Why is applying a Mudarabah contract to Takaful underwriting operations debated by Sharia scholars?

    <p>Because no profit is generated in underwriting operations</p> Signup and view all the answers

    Regarding Expense Handling in Takaful Models, what is a key factor to consider?

    <p>Balancing fixed expenses</p> Signup and view all the answers

    In the context of a Mudarabah Surplus Sharing Model, what is the main concern addressed before discussing profit?

    <p>Distribution of surplus after claims deduction</p> Signup and view all the answers

    What is a key aspect of the Non-Surplus Sharing Mudarabah Model?

    <p>Avoiding sharing surplus</p> Signup and view all the answers

    What makes the General/Group Takaful-One Year Plans unique compared to other Takaful models?

    <p>They have lower transaction costs</p> Signup and view all the answers

    In the Mudarabah Model, what happens if the operator shares in the surplus?

    <p>Maximizing firm's wealth</p> Signup and view all the answers

    What is the main source of potential commercial profit for Investment Profits in Takaful models?

    <p>Maximization of profit</p> Signup and view all the answers

    What is essential when discussing Expense Handling in Takaful Models?

    <p>Maintaining ethical standards</p> Signup and view all the answers

    What characteristic sets the General/Group Takaful- One Year Plans apart from other Takaful models?

    <p>One-year contract duration</p> Signup and view all the answers

    In the context of the Mudarabah Model, what typically happens to the surplus?

    <p>Shared between participants and operators</p> Signup and view all the answers

    How are investment profits usually handled in Takaful underwriting operations?

    <p>Shared between operators and participants based on a pre-agreed ratio</p> Signup and view all the answers

    What is a key feature of the Non-Surplus Sharing Mudarabah Model?

    <p>Operators retaining all investment profits</p> Signup and view all the answers

    In Takaful operations, what is the main source of potential economic profit?

    <p>Investment profit from funds</p> Signup and view all the answers

    What is a key aspect of the Non-Surplus Sharing Mudarabah Model?

    <p>Operator shares in the surplus</p> Signup and view all the answers

    What distinguishes General/Group Takaful-One Year Plans from other models?

    <p>Payment of performance fee for the operator</p> Signup and view all the answers

    In the Mudarabah Model, what happens when the operator shares in the surplus?

    <p>Operator receives higher profit share</p> Signup and view all the answers

    What is a key aspect of Investment Profits in Takaful?

    <p>Sharia-compliant equities and no interest</p> Signup and view all the answers

    How are expenses typically handled in Takaful Models?

    <p>Covered solely by the operator</p> Signup and view all the answers

    What makes it challenging for the Non-Surplus Sharing Mudarabah Model to operate as a stand-alone Family/Individual Life Takaful operation?

    <p>Difficulty in offsetting fixed expenses</p> Signup and view all the answers

    In terms of Investment Profits in Takaful, what is the primary focus?

    <p>Sharia compliance and no interest</p> Signup and view all the answers

    What role does the operator play in surplus sharing within a Takaful model?

    <p>Sharing surplus with policyholders and participants</p> Signup and view all the answers

    What happens in General/Group Takaful-One Year Plans that sets it apart from other models?

    <p>Participants account receives performance fee for operator.</p> Signup and view all the answers

    What does the Non-Surplus Sharing Mudarabah Model struggle with as a stand-alone Family/Individual Life Takaful operation?

    <p>Offsetting fixed expenses.</p> Signup and view all the answers

    Study Notes

    Property Rights in Islamic Framework

    • In Islamic business practices, an individual has a responsibility to protect and preserve property rights, as well as to use their property in a way that is pleasing to Allah.
    • The objective of a firm in Islam is to maximize the welfare of all stakeholders, not just shareholders, while ensuring the protection of property rights.

    Contracts in Islamic Business Practices

    • Contracts in Islamic business practices are based on the principles of mutual consent, fairness, and transparency.
    • The sacred duty related to contracts and governance is to ensure that all parties fulfill their obligations and respect the rights of others.

    Corporate Governance in Islamic Business Practices

    • In Islamic corporate governance, the fiduciary duty of managers is to act in the best interests of all stakeholders, not just shareholders.
    • The moral, social, and legal foundation for recognizing and enforcing obligations in implicit contracts is based on the principles of Shariah.

    Takaful and Corporate Social Responsibility

    • Takaful companies operate within the Islamic economic system to provide cooperative insurance and ensure that all parties fulfill their obligations.
    • Corporate Social Responsibility (CSR) in Islamic business practices entails fairness, transparency, and respect for the rights of all stakeholders.

    Ownership and Property Rights

    • In Islamic law, ownership is a trust from Allah, and individuals have a responsibility to use their property in a way that is pleasing to Allah.
    • The prohibition of riba (usury) and gharar (uncertainty) in Islamic business practices ensures that property rights are protected and respected.

    Fiqh Academy Resolution

    • The Fiqh Academy Resolution 1985 prohibits contracts that involve riba and gharar.
    • The alternative contract recommended in the Fiqh Academy Resolution is the cooperative insurance contract (Takaful).

    Mudarabah Model

    • In the Mudarabah Model, the operator shares in the surplus generated from the investment profits.
    • The key factor that determines whether a Mudarabah contract can be applied to investment profits in Takaful underwriting operations is the sharing of risks and rewards.

    General/Group Takaful-One Year Plans

    • The General/Group Takaful-One Year Plans are characterized by the sharing of risks and rewards among all participants.
    • The fees in these plans are typically fixed, and the surplus is distributed among all participants.

    Expense Handling in Takaful Models

    • Expenses in Takaful models are typically handled in a transparent and fair manner.
    • The key factor in expense handling is the sharing of costs among all participants.

    Investment Profits in Takaful

    • The primary focus of Investment Profits in Takaful is to generate returns that are Shariah-compliant.
    • The main source of potential commercial profit for Investment Profits in Takaful is the sharing of surplus among all participants.

    Islamic Economic System

    • The Islamic economic system is based on the principles of fairness, transparency, and respect for the rights of all stakeholders.
    • The primary objective of a Takaful company in the Islamic economic system is to provide cooperative insurance and ensure that all parties fulfill their obligations.

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