Takaful Insurance is founded on the cooperative concept and on the principle of separation between the funds and the operations of shareholders; thus passing the ownership of the fund to the policyholders. These policyholders are known as ‘contributors’ or ‘participant’ as they are participating in the fund for their mutual benefit. The company manages and operates the Takaful fund on their behalf.
The relationship between members of the fund is that of cooperation for mutual benefit. The individual members contribute to a well-managed fund where the core objective is for the welfare and protection of the entire group. They undertake a contract agreeing to mutually support each other in case of any misfortunes. Thus the essence of the relationship is one of strength and unity.
The contributions collected from the participants are considered as donations and they constitute the Takaful fund from which all claims are reimbursed. At the end of the financial year, after all expenses are deducted, the cash surplus will belong to the policyholders. It may be retained to strengthen policyholders fund or distributed as dividends. The treatment for policyholders’ surplus and basis for distribution is subject to approval from Sharia committee.
London, 11 December 2014 -- Moody's Investors Service ("Moody's") has today upgraded to Ba1 from Ba2 the insurance financial strength rating (IFSR)  of
Al Madina Insurance Company SAOG ("Al Madina"), based in Oman.
The rating carries a positive outlook.
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