(a) Tabarru’ means donation from the portion of the contribution that will be allocated to the Participants' Risk Fund (PRF), which will be used for mutual aid and assistance among the fellow participants.
(b) Iltizam Bi Al-Tabarru’ means the commitment to make Tabarru'.
(c) Wakalah means essentially an agent-principal relationship, where the Takaful Operator act as an agent on behalf of the participants to manage the PRF and the Takaful Operator earns Wakalah Fee for services rendered.
(d) Ju’alah means an agreement in which the participant agrees to reward the Takaful Operator for its achievement or good performance in managing the PRF that leads to Surplus of the fund.
(e) Qardh means an interest-free loan provided by the Takaful Operator in the event of a deficit in the PRF.
(f) Mudharabah means a contract between Participant and Takaful Operator whereby Participant provides the contribution to be managed by Takaful Operator for investment purpose. Any investment profit from the PA investment is to be shared between Participant and Takaful Operator in the ratio of 90:10. In the event of investment loss, the loss will be borne by the Participant provided that such losses are not due to the Takaful Operator’s misconduct (ta`addi), negligence (taqsir) or breach of specified terms (mukhalafah al-shurut).