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  • IFR 8.2 IFR 8.2 Specific Disclosure for Takaful Insurance

    • IFR 8.2.1 IFR 8.2.1

      Where an Insurer or an Insurance Intermediary conducts Takaful Insurance with a Retail Client, the disclosure for the purposes of COB section 7.7 must include:

      (a) the nature of the contracts between the Takaful fund and the operator;
      (b) the method of calculation of any fees or share of profits paid from the Takaful fund to the operator;
      (c) the basis on which any surpluses in the Takaful fund will be shared; and
      (d) any circumstances in which additional contributions to the Takaful fund may be required.
      Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]

      • IFR 8.2.1 Guidance

        1. Firms conducting Insurance Business comprising Takaful must comply with the requirements in PIN. Takaful related prudential requirements are not included in this module because of the closely integrated nature of such requirements with the requirements that apply to conventional insurance.
        2. Note that structures of Takaful Insurers (including reinsurers) vary, as do the Islamic contracts governing their business. As the DFSA has not as yet thought it appropriate to limit the permissible structures and contracts, the DFSA is willing to consider modifications to its Rules to apply the most appropriate prudential regime to a Takaful entity. For many Takaful companies, this is likely to involve capital tests at the level of the Takaful participants' fund or funds, and for the firm as a whole.
        Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]