F.A.Q.

Takaful is the Shari’a-compliant alternative to conventional insurance. Participants donate their Contributions to the Participants’ Takaful Fund, which is used to pay for any loss or damage that any of the Participants may suffer from. This means that the Participants share the risks.

t’azur’s role as Wakeel (Agent) is limited to managing the Takaful operations and investing the assets of the Participants’ Takaful Fund in compliance with Shari’a rules and principles.

There are several differences between Takaful and conventional insurance. The main differences are that in Takaful, the Participants donate to a shared Takaful Fund to provide protection for each other against risks, whereas in conventional insurance the premium is paid to the insurance company which bears all of the risk.

In addition, any surplus in the Takaful Fund is distributed among Participants and shareholders on the basis of Mudaraba and Wakala models, whereas all profits in conventional insurance belong to the shareholders of the insurance company only. As such, Takaful is based on mutual cooperation whereas conventional insurance is based more on commercial factors.

The third major difference is that Takaful companies adopt strict Shari’a principles in all aspects of their operations, avoiding prohibited concepts such as Riba (interest), Al-Gharar (uncertainty) and Al-Maisir (gambling), supervised by an external Shari’a Supervisory Board

Shari’a is an Islamic code of law based on the Holy Quran and Sunnah, and covers aspects of day-to-day life.

t'azur has a meticulous process for reviewing all of its products and making sure they are Shari’a compliant. This is done through its internal Shari’a Compliance Department and its external Shari’a Supervisory Board, which is lead by prominent Shari’a scholars.

Takaful can be employed using different models, for example; the Wakala Model, the Mudaraba Model, the Hybrid Model (combination of both Wakala and Mudaraba), the Waqf Model, the co-operative model (as practiced in Saudi Arabia).

t’azur adopts the Hybrid model in line with the standards set out by the Central Bank of Bahrain (CBB) and the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

A Wakala is a contract that appoints someone to be the Participant’s Wakeel (Agent) for a certain fee.

Wakala fees are paid for the services provided by the Wakeel, which include customer service, administration and claim handling. All Wakala fees are regularly reviewed and confirmed by the Shari’a Supervisory Board.

Mudaraba is a Takaful model based on profit-sharing. The Participant and the Takaful Company, as the Mudarib (investment manager), share any surplus/profits from investments with each other in accordance with a pre agreed ratio.

t'azur invests all of your Contributions in Shari’a compliant investments and funds with leading fund managers.

Yes, of course! All our Takaful plans are designed for everyone. What is important is that the Participant should abide by the terms and conditions of the plan, which are based on the rules of Shari’a.