Takaful Intermediaries Overview

An individual representing a Takaful Operator, promoting products and services to customers.

A Takaful Agent's primary duty is to promote Takaful products and services.

Takaful Agents provide advice and support to customers regarding Takaful products.

A Takaful Agent submits proposals to the Takaful Operator on behalf of the customer.

Takaful Agents raise awareness and provide information about Takaful products and services.

Maintaining a good relationship with existing and potential clients.

The agreement between a Takaful Agent and the Takaful Operator outlining their responsibilities and remuneration.

The contract between a Takaful Agent and the Takaful Operator can be written or verbal.

The ending of an agency agreement can occur when the agent gives notice to the principal, the transaction for which the authority was given is completed, or the contractually defined period expires.

An agency agreement can also end due to various events such as death, lunacy, or bankruptcy of either the principal or the agent, or when any law renders the agent's contract illegal.

Retakaful is a form of reinsurance in the Takaful industry, where takaful operators share risks among themselves to ensure claims can be paid.

Retakaful acts as a safety net for Takaful operators, allowing them to pay out large claims by pooling their risks.

The principles of indemnity, permissible Takaful interest, and utmost good faith (like in traditional insurance) also apply to Retakaful contracts.

A Takaful Agent must disclose their role as an agent and the specific Takaful Operator they represent to potential customers.

Individuals or entities not licensed as Takaful Operators cannot market or promote Takaful products.

The right to be compensated for services provided, usually in the form of a commission.

An agent is entitled to reimbursement for expenses incurred with their principal's permission within acceptable limits.

The right to perform their duties in a manner they deem appropriate and to reject any attempt by their principal to overcontrol their work.

Obligation of the principal to financially compensate the agent for services rendered as per agreement, custom, or what is considered reasonable.

The principal must protect the agent from any legal consequences of actions lawfully performed within their authority on behalf of the principal.

A contract between two takaful operators where one operator covers the risks of the other's takaful fund. It's essentially a form of risk sharing.

A type of Islamic contract where donations are pooled together to cover a shared risk or liability.

A contract where one party (the wakil) acts on behalf of another party (the muwakil) to perform a specific task. In retakaful, this means one takaful operator acts as an agent for its participants to cover risk.

A contract where one takaful operator agrees to cover the risks of another operator, using the assets of the retakaful provider. This helps to ensure the solvency of the takaful operator and its participants.

The fund created by takaful operators to cover the risks of retakaful agreements. This fund is used to pay out claims and maintain financial stability.

A person who connects potential customers with Takaful operators, primarily promoting Takaful plans offered by the operator.

An independent professional who assists customers in acquiring and renewing Takaful coverage from different Takaful operators. They act as a go-between and are not affiliated with any specific company.

An unbiased professional who provides financial advice, including recommendations for Takaful products. They analyze the financial needs of individuals and suggest suitable Takaful plans from a variety of providers.

These professionals solicit and obtain proposals for Takaful certificates on behalf of a Takaful operator.

The act of assisting clients in obtaining and renewing Takaful coverage from a Takaful operator.

Analyzing a person's financial planning needs related to a Takaful product and recommending an appropriate plan.

An independent contractor who carries out Takaful and/or Retakaful broking business. They are not affiliated with any specific Takaful operator.

A type of reinsurance where a standing agreement between retakaful companies ensures that risks within the agreement are automatically accepted.

A type of reinsurance where each case is considered individually and both the takaful and retakaful operators decide on a case-by-case basis if they want to enter into the agreement.

A type of reinsurance where individual policyholders of takaful products do not directly participate in the retakaful contracts, but their contributions are used to fund the retakaful.

In case of a retakaful fund deficit due to unforeseen claims, retakaful operators provide a loan to cover the liability. This loan is repaid in subsequent years.

Retakaful operations can be based on either al-mudharabah, al-wakalah, or a hybrid model combining both.

A retakaful model based on the Islamic principle of al-mudharabah, where the retakaful operator acts as the entrepreneur (mudharib) and the participants (sahibul mal) contribute to the risk fund.

A retakaful model based on the Islamic principle of al-wakalah, where the retakaful operator acts as a representative (wakil) managing the retakaful contributions of the participants.

A retakaful model that combines the elements of both al-mudharabah and al-wakalah, blending entrepreneurial management with representative responsibilities.