Policy Perspectives 2016: Volume 13, No. 2

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Questions and Answers

What is the primary role of Mudarib in relation to Qarz-e-Hasan?

To recover loans by providing additional support

To manage investments for profit generation

To act as a guarantor for the Takāful fund

To arrange loans from shareholders without any responsibility (correct)

Why is sharing of underwriting surplus considered problematic within Takāful?

It transforms Takāful into a commercial business venture (correct)

It leads to higher risks for the shareholders

It complicates the donation processes

It eliminates the mutual protection concept

What does the term 'Urf' signify in Islamic finance?

A financial strategy for maximizing profits

A legal basis derived from customary practices (correct)

An investment risk assessment technique

A contractual obligation among shareholders

What triggers the maturation of the donation contract under the model discussed?

Only if a loss is incurred by participants Signup and view all the answers

In the context of General Takāful, when is the actual tabarru determined?

Only when a loss occurs Signup and view all the answers

How is profit defined within the General Business framework discussed?

Only as underwriting surplus, akin to traditional models Signup and view all the answers

What is the main purpose of the guidance provided by Bank Negara Malaysia?

To provide Shari’ah resolutions for Islamic finance Signup and view all the answers

What does 'Hiba bis-Sawab' refer to in this context?

A conditional act of giving a gift with mutual expectation Signup and view all the answers

What is the primary purpose of the Takāful contributions made by participants?

To create a defined asset for mutual benefit Signup and view all the answers

In a Takāful arrangement, what happens to the investment returns generated by the Takāful company?

They are pooled back into the General Takāful Fund Signup and view all the answers

What happens if there is a surplus in the General Takāful Fund after deducting operational costs and no claims are incurred?

The surplus is shared between participants and the Takāful operator Signup and view all the answers

What is a key criticism made by scholars regarding the use of the Muḍārabah model in Takāful?

It links tabarru with profit-sharing which is deemed inappropriate Signup and view all the answers

Which of the following is NOT true regarding operational costs in a General Takāful business?

They are reimbursed from the surplus of participants Signup and view all the answers

What income sources contribute to the earnings of the Takāful company?

Investment income and a share from surplus Signup and view all the answers

What is a major objection related to commercial insurance mentioned in the context of Takāful?

Presence of gharar in commercial contracts Signup and view all the answers

When are profits attributed to Takāful participants usually distributed?

Upon expiry of their respective General Takāful Schemes Signup and view all the answers

What is the primary principle of the Muḍārabah model?

Profit and loss sharing between capital provider and manager. Signup and view all the answers

In the context of the Muḍārabah model, who is referred to as Rab-ul-Māl?

The entity providing initial capital. Signup and view all the answers

Which region primarily utilizes the Muḍārabah model of Takāful?

South-East Asia Signup and view all the answers

What distinguishes the Muḍārabah model from other Takāful models?

It features a profit-sharing contract between participants and operators. Signup and view all the answers

What role does the Mudarib play in the Muḍārabah model?

They are responsible for managing the business. Signup and view all the answers

How are profits distributed in the Muḍārabah model?

According to a mutually agreed-upon contract between the parties. Signup and view all the answers

What is a common misconception about the Muḍārabah model?

It guarantees profit for the capital provider. Signup and view all the answers

What aspect of the Muḍārabah model requires careful attention from a Shariʻah perspective?

The clarity of profit-sharing arrangements. Signup and view all the answers

Study Notes

Policy Perspectives Volume 13, Number 2, 2016

The publication is Policy Perspectives, Volume 13, Number 2, published in 2016 by the Institute of Policy Studies, Islamabad.
It contains articles on various topics, including the Sustainable Development Goals (SDGs), Islamic insurance, Middle East refugee crisis, European approaches, Pan-Arabism, US-Israel aid relationship, Pakistan, Afghanistan, Gwadar, nuclear energy security, and power sector review.
The publication includes an "Editor's Note," and a section with "Contents."
Specific articles include "Realizing Sustainable Development Goals (SDGs): Need for an Indigenous Approach," "Islamic Insurance: Evolution, Models and Issues," "Middle East Refugees' Crisis," "Pan-Arabism," "U.S.-Israel Special Aid Relationship," "Afghanistan: Finding Peace Amidst Chaos," "Gwadar: A Historical Kaleidoscope," "Nuclear Energy Security," and "Review of Government's Performance in Power Sector (2013-2016)."
Detailed information is provided on the "Evolution of Takaful" including timelines of key events between 1976 and 2010.
The articles cover various aspects, including theoretical debates, models, and practical implementations of Islamic insurance (Takaful), and the development of Takāful companies over time including experiences with early Islamic Insurance Companies from different countries.
Analysis of different approaches to Takaful, particularly the Mudarabah, Wakalah, and Waqf-Wakalah models, is provided.
The papers examine the historical context and contemporary issues related to the respective topics.
The publication also contains a summary of dialogues at the Institute of Policy Studies.

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Description

Explore the diverse themes covered in Volume 13, Number 2 of Policy Perspectives, published in 2016. This publication discusses critical issues such as the Sustainable Development Goals, Islamic insurance, and the Middle East refugee crisis among others. Gain insights into the dynamics of U.S.-Israel relations and the challenges facing Pakistan and Afghanistan.