Presented by:

M Vaqaruddin
CEO
Pak-Qatar General Takaful Ltd.
Karachi
 Mudharabah-Based Takaful
In this model, a clear distinction is made between
the business of takaful or insurance and the
business of investing funds mobilized from
policyholders and/or the shareholders.
The takaful operator seeks no returns from
managing the takaful business in line with the spirit
of takaful. It seeks returns from the business of
investing the takaful funds under a mudaraba
agreement with the policyholders for managing their
funds.
The policyholders assume the role of fund provider
or rabb-al-maal. As a mudarib the takaful company
receives its share of profits generated on
investments.

Data taken from the presentation of M Vaqaruddin CEO Pak-Qatar General Takaful Ltd
You can take pic of this slide from your phone with the permission of teacher as this data is not available in your study material
.
 Mudharabah Model
PROFITS
ATTRIBUTABLE TO
SHAREHOLDERS

COMPANY
COMPANY'S
ADMINISTRATION &
MANAGEMENT
EXPENSES

TAKAFUL CONTRACT PROFITS

INVESTMENT BY
BASED ON PRINCIPLE OF FROM
COMPANY
AL-MUDHARABAH INVESTMENT

OPERATIONAL SHARE OF
COST OF SURPLUS FOR
TAKAFUL THE COMPANY
TAKAFUL
PARTICIPANT PARTCIPANT 40% (Example Only)
PARTICIPANT CONTRIBUTI OPERATIONAL SURPLUS
TAKAFUL TAKAFUL
ON PAID BY COST OF TAKAFUL (PROFIT)
FUND FUND 60% (Example Only)
PARTICIPANT
OPERATIONAL SHARE OF
COST OF SURPLUS FOR THE
TAKAFUL PARTICIPANT

Data taken from the presentation of M Vaqaruddin CEO Pak-Qatar General Takaful Ltd
You can take pic of this slide from your phone with the permission of teacher as this data is not available in your study material
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 Wakala-Based Takaful
In the wakala-based model, the takaful
operator acts as the wakil or agent of the
policyholders. As such it is entitled to a
known remuneration. It incurs all the
operational expenses on behalf of its
principal.

Data taken from the presentation of M Vaqaruddin CEO Pak-Qatar General Takaful Ltd
You can take pic of this slide from your phone with the permission of teacher as this data is not available in your study material
.
 Wakala Model
COMPANY MANAGEMENT PROFIT / LOSS
TAKAFUL ADMIN & MARKETING SHARE OF PROFIT
EXPENSES OF ATTRIBUTABLE TO
EXPENSES 25% TO 35% FOR THE COMPANY
COMPANY SHAREHOLDERS

40%
TAKAFUL
CONTRACT BASED INVESTMENT PROFITS FROM
ON PRINCIPLE OF BY FUND INVESTMENT
AL-WAKALAH
60%

OPERATIONAL
COST OF TAKAFUL /
RETAKAFUL
TAKAFUL PARTICIPANT SHARE OF
PARTICIPANT PARTCIPANT
CONTRIBUTI TAKAFUL OPERATIONAL SURPLUS SURPLUS FOR
TAKAFUL
ON PAID BY FUND COST OF TAKAFUL (PROFIT) THE
FUND
PARTICIPANT 65% TO 75% PARTICIPANT
OPERATIONAL
100%
COST OF TAKAFUL

Data taken from the presentation of M Vaqaruddin CEO Pak-Qatar General Takaful Ltd
You can take pic of this slide from your phone with the permission of teacher as this data is not available in your study material
.
 ul
Waqf:
Charity, religious endowment testamentary bequest of
real estate.
Waqf can be made for Property, Money or any other
asset.
Waqif should be Sain, Adult, Owner, Free.
It is not necessary for the Waqif to be a muslim.
The Waqif can put conditions at the time of Waqf.

Data taken from the presentation of M Vaqaruddin CEO Pak-Qatar General Takaful Ltd
You can take pic of this slide from your phone with the permission of teacher as this data is not available in your study material
.
 Wakala-WAQF Based Takaful
Some of the Shariah scholars have critically analyzed the Wakala
system and have suggested to incorporate the concept of Waqf into
the Wakala model.
Under this revised model, the operator would initially make a
donation to establish a benevolent fund called the Waqf Fund.
When this Waqf is created, the shareholders will lose their
ownership rights on the waqf. However, this fund will be
administered by the operator. The donations received from the
participants, seeking takaful protection, will also be deposited into
this fund and the combined amount will be used for investment.
Profits earned will be deposited into the same fund. Participants will
be given benefit from this Waqf fund. The Waqf fund would be
allowed to form contingency reserve fund apart from usual technical
reserves.
The Waqf fund rules would define the basis for compensation and
financial help, and rules for sharing surplus between the members
and operators.
This model is adopted in Pakistan by Takaful Operators

Data taken from the presentation of M Vaqaruddin CEO Pak-Qatar General Takaful Ltd
You can take pic of this slide from your phone with the permission of teacher as this data is not available in your study material
.
 Wakala Waqf Model
COMPANY TAKAFUL OPERATOR FEES FOR MANAGEMENT PROFIT / LOSS
SHARE OF PROFIT
ADMIN & MARKETING EXPENSES EXPENSES OF ATTRIBUTABLE TO
FOR THE COMPANY
25% TO 35% COMPANY SHAREHOLDERS

40%

PROFIT SHARING ON
INITIAL DONATION BY MUDARABHA BASES
SHAREHOLDERS TO
CREATE WAQF FUND

Waqf Waqf INVESTMENT PROFITS FROM

BY FUND INVESTMENT

60%

OPERATIONAL COST OF
TAKAFUL /RETAKAFUL
TAKAFUL SHARE OF
PARTICIPANT CONTRIBUTION WAQF FUND SURPLUS SURPLUS FOR
WAQF FUND OPERATIONAL COST OF
PAID BY 65% TO 75% TAKAFUL (PROFIT) THE
PARTICIPANT PARTICIPANT
OPERATIONAL COST OF
TAKAFUL 100%

Data taken from the presentation of M Vaqaruddin CEO Pak-Qatar General Takaful Ltd
You can take pic of this slide from your phone with the permission of teacher as this data is not available in your study material .