1. Takaful Insurance Company, Insurance Company, or Reinsurance Company that carries on Takaful Insurance business shall establish a fund that has an independent legal personality and financial liability distinct from it. This fund referred to as ‘Takaful Insurance Fund’ shall be registered with the Central Bank and falls under its supervision. 2. Contributions (Premiums) which are based on the concept of ‘Tabaru’, as per the Higher Shari`ah Authority’s standards, shall be deposited in the Takaful Insurance Fund which is liable for any compensation or benefits under the provisions of Takaful Insurance Policies. 3. The companies referred to in item (1) of this article shall set articles of association for the Takaful Insurance Fund as per Central Bank and the Higher Shari`ah Authority standards. Such articles of association shall be separate from the Insurance Company’s articles of association. 4. The Takaful Insurance Fund shall have an independent financial position that is disclosed in the concerned company’s financial statements. 5. The Board of Directors shall issue the controls and procedures related to the establishment and the operations of the Takaful Insurance Fund.
Interpretation and application must be checked against the official text and current version.