Shariah Education
Why is Shariah governance important?
Shariah principles are the foundation for the practice of Islamic finance through observance of the tenets, conditions and principles adopted by Shariah. Based on this notion and in accordance with BNM’s Shariah Governance Framework requirements, FWD Takaful operates based on the explicit Shariah rulings, support of robust internal Shariah compliance functions, advice of its Shariah Committee (the “SC”) and ultimately the Shariah Advisory Council (“SAC”) of Bank Negara Malaysia (“BNM”). FWD Takaful believes that comprehensive compliance with Shariah principles would bring confidence to all stakeholders in the credibility of Islamic finance operations.
How does Takaful work in FWD Takaful?
Takaful Model
Shariah Contracts in Takaful
The relationship between participants is governed by Ta’awun concept and Tabarru’ (donation) contract. Ta’awun and Tabarru’ is a mutual assistance scheme based on the spirit of brotherhood and solidarity where participants agree to assist each other financially in case of certain defined needs.
FWD Takaful adopted the Ju’alah contract to share the surplus arising from the PRF with participants and investment profit gained from the PRF.
Qard contract will be applied to grant an interest-free loan from the Takaful Operator’s Fund to the PRF if the PRF is in deficit. The Qard is repaid from the PRF’s future surplus.
If a nominee is named as a beneficiary (under a conditional Hibah) or executor (wasi), the nominee shall be entitled to the Takaful benefits fully according to the share/percentage stated in the nomination form.
