Professional Documents
Culture Documents
Gharar
Riba
Maysir
Maysir is gambling. Conventional insurance is a
zero-sum game or a game of chance when one
party wins or gains, the other party must lose. It
is as though the insurance premium, which is
normally very low compared to the financial
compensation claim, is paid win the protection
amount.
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Insurance
Takaful
Premium
Contributions
Agency
Commission(paid to
agents)
Reinsurance expenses
ReTakaful contribution
Technical reserves
Technical reserves
No equivalent
No equivalent
No equivalent
Unearned Premium
Reserve
Provision for
outstanding claims and
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Transactions
Dr.
Cr.
Contributions received
Cash
PHRA
PHRA
PHRA
UCR
PHRA
PHRA
P/L
Cash
PHRA
PHRA
P/L
Cash
Claims paid
PHRA
Cash
PHRA
PHRA
PHRA
PHRA
PHRA
P/L
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The following
2008:
data is from the records of ABC Takaful Ltd. for the year ended 31 st December
$000s
1.This amount includes contributions amounting to RM200,000 which relates to the year 2009
2.The operator charges Wakalah fee of RM100,000 a year and also charges operating expenses which
are directly attributable to the Takaful fund.
3.The operator has a Mudaraba contract and shares 40% of the profits for investment of the
participants funds.
4.The operator charges Jualah commission of 10% of the fund surplus of over RM200,000
5.The directors decide to distribute RM300,000 to participants
You are required to prepare a Takaful Participants Revenue Account from the following data and notes,
as well as an extract of Income statement of the Takaful operator
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1500
100
1600
(700)
900
100
200
300
(150)
150
300
100
550
350
(15)
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participants
funds
500
(200)
300
635
(300)
335
100
435
100
200
15
315
250
565
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