This type of arrangement is designed to provide indemnification and short-term (usually one year) protection for actual injuries, including vehicle accidents, fire, liability issues and the breaching of trust.
How It Works
The Takaful Operator assumes the role of a manager of the Takaful Fund, as well as a Mudarib or Wakil (agent) to invest the contributed pool of funds in Shariah-compliant channels. At the end of every year, contribution and renewability rates are subject to negotiation.
Types of Contracts
The Takaful Company will bear the responsibility of indemnifying the policyholder for loss/damage to the said vehicle, accessories and spare parts. Should an accident occur due to the use of the vehicle, the policyholder will be compensated within the limits specified in the policy.
In the case of a fire, all movable and immovable property will be covered.
Contractors will be protected against the exposure to loss, damage or liability caused by internal and external factors in engineering companies.