‘Aqd (plural ‘uqud)
Group of family members from paternal side (or the parties) who are liable to mutually share the cost of blood-money in case of unintentional killing.
The Holy Book of Muslims consisting of verbal revelations of God (Allah) to Prophet Muhammad (peace be upon him) via angel Gabriel (Jibril). The Quran lays down the fundamentals of Islam which includes beliefs, moral values and laws that cover all aspects of life.
Reliability, trustworthiness and honesty. An important value of Islamic society in mutual dealings. It also refers to deposits in trust, where a person may hold property in trust for another.
Sale contract followed by repurchase by the seller at a different price.
Bai’ Bithaman Ajil
Sale contract based on deferred payment at certain price (normally marked up).
Sale of debt.
Sale contract based on order of certain asset with certain specifications. Full payment is made in cash at the time of conclusion of the contract whereas the delivery of the asset is deferred to a specified time.
An evidence of a contract between a participant and a Takaful operator on behalf of the Tabarru’ fund which sets out the terms and conditions of the particular certificate.
Notification to a Takaful operator that payment of an amount is due under the terms of the certificate.
Monetary contribution provided once or periodically by a participant to a Takaful operator as ‘wakeel’ (agent) for the purpose of investment and Tabarru’.
The ratio of total expenses for the year (including commissions, salaries, etc.) to the sum of total contribution income other than single contribution and consideration for annuities.
Faqih (plural Fuqaha)
The knowledge or rules om estate distribution according to Islamic principles.
Islamic law of inheritance and estate distribution.
Defective or invalid. This is a legal value for a contract which has irregularities.
Religious decree or an authoritative legal opinion based on Islamic law (Shariah).
The knowledge of Shariah rulings (Islamic jurisprudence) which are derived from specific evidence in contrast with conventional law, fiqh covers all aspects of life, religious, political, social, commercial, economic and other human beings' activities. The whole corpus of fiqh is based primarily on interpretation of the Quran and the Sunnah and secondarily on ijma’ (consensus) and ijtihad (individual judgement).
A description of knowledge that discusses the rules relating to human affairs.
Element of uncertainty.
A minor/slight gharar that is tolerable and will not invalidate a contract.
Group Family Takaful
Family Takaful (usually without medical examination) on a group of people under a master certificate. It is typically issued to an employer for the benefit of employees, or to members of an association.
All that is narrated from the Prophet (peace be upon him) which include his acts, sayings, approvals, intentions, physical appearance and manners.
Haq Maliy are rights on the financial assets. Examples of such rights are haq dayn (debt rights) and haq tamalluk (ownership rights).
An act of transferring of ownership of an asset to the beneficiary without any consideration.
Hukum (plural Ahkam)
Shariah rulings having general applicability.
Rebate/waiver of partial or total claim against certain right or debt.
Lease or service contract that involves benefit or usufruct of certain asset or work for an agreed payment or commission within an agreed period.
A consensus of Muslim jurists after the demise of Prophet Muhammad (peace be upon him) on a particular Shariah issue. Ijma’ is one of the sources of Islamic Law.
Reasoning by qualified Shariah scholars to obtain Shariah rulings from the sources of Shariah.
Individual Family Takaful
A contract that provides Takaful benefits payable to an individual upon death/total permanent disability or periodic income to participant upon retirement.
A contract where the certificate benefits at any time vary according to the value of the Takaful underlying assets at the time.
Juristic preferences, disregarding a ruling backed by a dalil (proof) and resorting to another ruling which is also backed by other dalil that is sounder.
Objectives of Shariah of a legal rule which is meant to enjoin benefits for the mankind.
Maslahah (plural masalih)
Consideration of public interest
Medical and Health Takaful
A contract that provides specified medical treatment benefits such as the cost of hospitalization, Takaful surgical and physician consultation fees against risks of a person being diagnosed with certain illnesses or suffering injury as the result of an accident.
A profit -sharing contract.
An entrepreneur in a mudharabah.
Settlement of debt by offsetting.
Sale contract with a disclosure of the asset cost price and profit margin to the buyer.
Partnership, joint venture, profit and loss sharing.
Participants’ Investment Fund (PIF)
An account to credit a portion of contributions from the participant for the purpose of investment/savings.
Participants’ Risk Fund (PRF)
An account to credit a portion of contributions from the participant for the purpose of Tabarru’.
Pledge or collateral.
Means takaful cover arranged by a takaful operator with a second takaful operator on the risks of the takaful fund it administers, wholly or partly, and includes any similar arrangement by a branch of the takaful operator in Malaysia with its branch outside Malaysia (the head office of the takaful operator being, for this purpose, treated as a branch).
Interest or usury.
An attachment to a basic certificate that provide additional benefits.
Sukuk (plural of Sokk)
Islamic securities or bond.
Voluntary contribution or donation.
Means an arrangement based on mutual assistance under which takaful participants agree to contribute to a common fund providing for mutual financial benefits payable to the takaful participants or their beneficiaries on the occurrence of pre-agreed events.
A contract that provides a stream of periodic income upon retirement for a term dependent upon human/life.
Means the business relating to the administration, management and operation of a takaful fund for its takaful participants which may involve elements of investment and savings and includes retakaful business and a reference to carrying on takaful business may include all or any of the activities set out under Section 5 (4) (a) of the Islamic Financial Services Act 2013.
An arrangement that involves a purchase of an asset based on musawamah or murabahah and a subsequent sale of the same asset to a third party in order to obtain cash money.
Waqf (plural awqaf)
An endowment or a charitable trust set up for Islamic purposes (usually for education, mosques or for the poor). It involves tying up a property in perpetuity so that it cannot be sold, inherited or donated.