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CHAPTER 5 : TAKAFUL - Coggle Diagram
CHAPTER 5 : TAKAFUL
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Takaful Stakeholder
Participant
Conditions
Age, medical fitness, legally qualified, free and authorized
Beneficiaries
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An artificial entity or unborn child is disqualified as beneficiary
because it has no capacity of a takaful benefits
Takaful Operator
One who undertakes the operation on behalf of all participants
~ Must have contractual capacity
~ Must be registered before the commencement of the operation
~ An operator must able to show that it is at all times to
maintain surplus of asset over liabilities
~ Has to make a deposit before obtaining a license: Kept as security
Nominees
The nominee act as a trustee who holds the takaful benefits as a trust and distributes the benefits when the beneficiaries have attained full capacity to receive such benefits
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Concept of Insurance
~ It is a tool to reduce uncertainty: Transfer of risk against
unexpected future losses
~ The uncertainty is reduced because losses are shared by or distributed among exposure units
Types of Risk:
- Pure Risk
- Speculative Risk
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