Distribution of underwriting surplus and investment profit from tabarru' fund: Shariah contracts applied and current market practice

• Main Authors: Ibrahim, Ahmad Basri, Mohd Ali, Ahmad Fadhil Hamdi, Elias, Mohd Hafizal, Wan Ahmad Lotfi, Wan Ahmad Najib
• Format: Article
• Language: English
• Published: Australasian Journal of Islamic Finance and Business (AJIFB) 2015
• Subjects: HG8011 Insurance
• Online Access: http://irep.iium.edu.my/45532/1/45532.pdf; http://irep.iium.edu.my/45532/; http://acrd.net.au/ajifb/files/Paper%205.pdf
• Institution: Universiti Islam Antarabangsa Malaysia

Takaful is a contract whereby the participants commit to contribute an amount on regular basis or in one lump sum in a specified fund to mutually guarantee each other and appoint a body to act as the fund manager. In this contract, Takaful participants have the opportunity to mitigate the possible f...