Agent/Wakeel
The representative of the Participant’s Takaful Fund.
Application form
A signed statement of facts made by the applicant for Takaful, on the basis of which the Company carry out an underwriting in full accordance with the terms and conditions of this Plan. The application form becomes part of the contract when the Plan is issued.
Company
Al Madina Company S.A.O.G
Contribution
The amount paid by the Participant to the Participant’s Takaful Fund (PTF) based on a commitment to donate towards risk protection.
Covered Property
Contents specified in the Policy Schedule.
Declaration
Same as Plan Schedule.
Material Fact
Any fact that may affect the judgment of the Underwriter, in deciding whether to accept a risk or not and if it decides to accept, the terms on which it will do so. For an existing contract it affects the Company’s judgement of whether it wishes to continue to cover the risk and if so on what terms.
Mudarib
The manager of an Investment Fund.
Participant &/or Contributor &/or Insured
Any person or entity who has entered into the Takaful Contract.
Participants
Takaful Fund
The Participants’ Takaful Fund is a collective pool established, invested and managed by the Company with the sole purpose of providing Protection Benefits as per the terms of this Plan. All costs, expenses, charges and fees for maintaining and investing the assets of the Takaful Fund and any other expenses related to the Takaful Fund including the Re-Takaful or Reinsurance, claims expenses and strengthening reserves to secure or maintain the claim paying ability, shall be borne by the Takaful Fund. Any investment gains or losses on the assets of the Takaful Fund are credited or charged to the Takaful Fund
Plan
The document evidencing the terms, conditions, benefits and price of the cover applicable to the Participant Member. The Plan constitutes of:
- The Application form(s) duly completed and signed by the Participant on behalf of the Participant Members
- The Plan schedule
- The table of benefits and general exclusions
- The general terms and conditions
- Membership cards
- Endorsements to any of the aforementioned
- Membership guide, for information and guidance
Plan schedule
The Plan schedule is the page of the Plan which lists the Company, its address, name of the participant, starting and ending dates of coverage, and the actual coverage’s given in the contract, including the locations and amounts.
Surplus
The Surplus comprised of residual Contributions of the Participants in addition to the reserves and profits, after deducting all expenses and indemnity amounts. The residual amount thus computed is considered a Surplus, rather than a profit.
Takaful
A kind of cooperative insurance under the management of a specialised company that adheres to the rules and principles of Islamic Shari’a.
Takaful Fund (PTF)
A collective pool (and separate financial entity from the Company) established, invested and managed by the Company with the sole purpose of providing Protection Benefits as per the terms of this Plan. All costs, expenses, charges and fees for maintaining and investing the assets of the Takaful Fund and any other expenses related to the Takaful Fund, including the Re-Takaful or Reinsurance, claims, expenses and reserves to secure or maintain the claim paying ability, shall be borne by the Takaful Fund. Any investment gains or losses on the assets of the Takaful Fund are credited or charged to the Takaful Fund.
Wakala
The contract that appoints someone to be the Participant’s Agent for a certain fee.
Qard Al-Hasan
An interest free loan (benevolent loan).