Operational Flow of Short-term General Takaful Products
- Participants pays contribution.
- Contribution will be devided into:
- Wakalah Fee (applicable for wakalah model); and
- Group/General Takaful Fund.
The allocation between WF and GTF is based on the pre-agreed ratio between participant and takaful operator as specified in the contract and depending on the type of product.
- WF that consist of commission and management expenses will be paid to shareholders' fund.
- Excess in GTF [ after deducting operating expenses (applicable for mudharabah model) ] will be invested and invesment income will be ploughed back to the fund. Takaful operator will receive an agreed portion of the invesment income as performance fee.
- Surplus at the end of the year (afterdeducting claims, retakaful and reserves) will be distributed to the takaful operator and participants based on the pre-agreed ratio as stipulated in the contract.
- Shareholders will use the WF and invesment profit (for mudharabah model) to pay for the operating expenses.
