BASICS CONCEPT OF TAKAFUL

In Etiqa Takaful Berhad there is five concepts which is concern and that are Al-Qasamah, Aqilah, Tabarru’, Al-Wakalah and Al-Mudharabah.

Al-Qasamah

It protects policy holder’s life in the case of Qisas. According to the scholars, 50 persons should be swear if in the case of murder without knowing the suspect and there is no any proof. If there is 50 persons, they have to swear about 50 times. Qasamah is compulsory when there is unclear statement.

'Aqilah

In this system, the member of the society agreed to help another member of the society in case of any member of a society was killed. The heir of the victim would be paid an amount of blood money as compensation by the close relatives of the killer. Those close relatives of the killer called as ‘Aqilah, were supposed to pay the blood money on behalf of the killer.

Tabarru’

It means donation, contribute or give charity to help the needy. In this concept, all participants agreed to help each other in the same intention. In takaful industry, the purpose of tabarru’ is all participants should donate as much as risk that they have been taken. The takaful operator defines the amount of tabarru’ in order to ensure that the fund is stable and give proper consideration to the claims of all concerned. Therefore, if one participant has a high risk, the rate of his/her contribution should be large as much as his/her risk.

Al-Wakalah

It means appoint a person to a job to manage a certain matter. It is known as agent. In this concept, participants will give permission to the agent to invest and manage the fund.

Mudharabah

Technically, it means the commercial profit sharing contract between the provider or providers of fund for a business venture and the entrepreneur. The entrepreneur will accept payment of takaful instalments or takaful contributions from investors or providers of capital or fund.