By 2004, the total gross written premium (GWP) for takaful business (life and non-life combined) had grown to just under $1.4 billion.
Takaful Insurance Resources
Understanding Takaful Practice
Takaful originates from Arabic word Kafalah, which means "guaranteeing each other" or "joint guarantee". In principle, the Takaful system is based on mutual co-operation, responsibility, assurance, protection and assistance between groups of participants
Qabul or Acceptance
Acceptance is normally made by the operator either straight based on proposal or offer from the prospective participant, or if the operator does not agree with the proposal, they can alter or add some additional terms and conditions. The later case will be considered as counter offer to the prospective participants. The mode of acceptance of a proposal may be inferred by any of the following conducts of the operator.
- Issuance of Takaful certificate
- Issuance of temporary cover note
- Issuance of an official receipt for the first payment of contribution
- Any kind of acceptance (through fax, telephone, email, computerizes or electronic message) to the proposal of the intended participant
Once the contract is done, both parties are bound to comply with the terms and conditions of the contract. As as reference, in the Appendix are attached two example of complete Takaful contract terms and conditions in the form of Takaful certificates based on Wakalah and Mudharabah.
