International Conference on Islamic Banking & Finance in Mauritius

1. CENTER OF ISLAMIC BANKING & ECNOMICS Organized By :

8. Issue Conventional Insurance Takaful Organization Principle Profit for shareholders Mutual Benefit for Participants Basis Risk Transfer Risk sharing Value Proposition Profits maximization Affordability and spiritual satisfaction Laws Regulations Sharia plus regulations Ownership Shareholders are Owners Participants Management status Managed by Company Management Operator Form of Contract Contract of Sale Islamic contracts of Wakala or Mudarbah with Tabar ’ ru (contributions) Investments Interest based Sharia compliant, Riba-free Surplus Profit of Insurance Company. Distribution to Participants on pro rata basis.

18. Participants Pool of Contributions Participants Contribution

19. Participants Participants Contribution Pool of Contributions Investment in Shariah Complaint Avenues Profit from Investment (Part of the profit goes to the Company for acting as mudarib)

20. Participants Participants Contribution Pool of Contributions Wakala Fee Claims Re-Takaful Expense etc. Investment in Shariah Complaint Securities Profit from Investment (Part of the profit goes to the Company for acting as mudarib)

21. Participants Participants Contribution Pool of Contributions Wakala Fee Claims Re-Takaful Expense etc. Investment in Shariah Complaint Securities Profit from Investment (Part of the profit goes to the Company for acting as mudarib)

22. Participants Participants Contribution Pool of Contributions Wakala fee, Claims, Re-Takaful Expenses SURPLUS Investment in Shariah Complaint Securities Profit from Investment (Part of the profit goes to the Company for acting as mudarib )

23. Participants Participants Contribution Pool of Contributions Wakala fee, Claims, Re-Takaful Expenses SURPLUS Investment in Shariah Complaint Securities Profit from Investment (Part of the profit goes to the Company for acting as mudarib)

24. Participants Participants Contribution Pool of Contributions SURPLUS Contingency Reserve Charity Distribute Among Participants Wakala fee, Claims, Re-Takaful Expenses Investment in Shariah Complaint Securities Profit from Investment (Part of the profit goes to the Company for acting as mudarib)

25. Participants Participants Contribution Pool of Contributions Contingency Reserve Charity Distribute Among Participants SURPLUS Wakala fee, Claims, Re-Takaful Expenses Investment in Shariah Complaint Securities Profit from Investment (Part of the profit goes to the Company for acting as mudarib)

26. Participants Participants Contribution Pool of Contributions Contingency Reserve Charity Distribute Among Participants SURPLUS Wakala fee, Claims, Re-Takaful Expenses Investment in Shariah Complaint Securities Profit from Investment (Part of the profit goes to the Company for acting as mudarib)

27. Participants Participants Contribution Pool of Contributions SURPLUS Contingency Reserve Charity Distribute Among Participants Wakala Fee Claims Re-Takaful Expense etc. Investment in Shariah Complaint Securities Profit from Investment (Part of the profit goes to the Company for acting as mudarib) + + - =

28. Investment Income Operational Cost of Takaful / ReTakaful Claims & Reserves Surplus (Balance) P A R T I C I P A N T S’ T A K A F U L F U N D (P.T.F.) Admin Expenses, Employee’s etc. Wakalah Fee Investment Income Management Expense of the Company Profit/Loss S H A R E H O L D E R S’ F U N D (S.H.F.) Participant WAQF Takaful Operator Share Holder Wakala-Waqf Model Investment by the Company

32. CENTER OF ISLAMIC BANKING & ECNOMICS Head Office: 192- Ahmad Block, New Garden Town , Lahore, Pakistan Ph: +92-42-35913096-8, 35858990, 38407850 Fax: +92 -42-35913056 E-mail : [email_address] Web: www.alhudacibe.com