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Shariah Resolutions In Islamic Finance

HLMT Takaful Made Easy

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Terms Explanation
Akad istithaq  Contract of guarantee
Akad isytirak  Contract of partnership such as
Akhz al-ajr `ala al-jah Charging fee for someone’s reputation
Akhz al-ju`l `ala ruqyah min al-Quran Charging fee for treatment/ medication using verses of al-Quran
Al-`adah muhakkamah Common practice as basis of the ruling
Al-ajl  Deferment
Al-bai`  Sale contract
Al-bai` wa al-salaf  Sale contract with credit term
Al-ijarah thumma al-bai` Lease contract followed by ownership of asset through a sale contract
Al-muqasah al-ittifaqiyyah Offsetting by mutual agreement by contracting parties
Al-muqasah al-jabariyyah Offsetting by order of the authority
Al-naqd yalid al-naqd Money begets money
Al-wa`d bi al-tamlik  Promise to own or acquire ownership
Terms Explanation
Bai` `inah  Sale contract followed by repurchase by the seller at a different price
Bai` dayn  Sale of debt
Bai` al-dayn bi al-dayn Sale of debt with debt
Bai` sarf  Sale of currency
Bai` al-usul bi al-khasm Sale of asset at discount
Bai` al-kali’ bi al-kali’ Sale of debt with debt
Bai` bithaman ajil  Sale contract based on deferred payment at certain price
Bai` mu’ajjal  Refer bai` bithaman ajil
Bai` muzayadah  Sale contract based on bidding or auction
Bai` salam  Sale contract based on order of certain asset with certain specifications
Bai` wadhi`ah  Sale contract with a price lower than acquisition cost
Bai`atain fi al-bai`ah  Two sales contracts within one sale contract
Terms Explanation
Terms Explanation
Dayn ghair thabitah Debt which is not yet established
Dayn mustaqir  Debt which the liability to pay is established
Dayn thabit  Debt which is fixed
Dhaman Guarantee
Dharar  Harm
Dhawabit Guidelines
Dho` wa ta`ajjal  Reducing the amount of debt when the debtor make early settlement
Terms Explanation
Terms Explanation
Facultative Retakaful agreement executed between a takaful company and another takaful company (including conventional insurance company), and the takaful company which underwrites the risks is having the option to distribute or cede whereas the latter or conventional insurance company has the option to receive or refuse the risks
Faraid  The knowledge or rules on estate distribution according to Islamic principles
Fasakh Termination
Fasid Defective, invalid
Fiqh muamalat  A discipline of knowledge that discusses the rules relating to human affairs
Fuqaha Fiqh scholars
Terms Explanation
Gharamah Fine/penalty
Gharar Uncertainty
Gharar yasir  Minimal uncertainty
Ghasb Confiscation or unlawful seizure of property
Terms Explanation
Hajah Need
Hamish jiddiyyah  Security deposit
Hibah ruqba  A gift during the lifetime of the giver or recipient of hibah with a condition that the death of a party (either the giver or recipient of hibah) is the effective condition for ownership of the property by the surviving party
Hibah umra  A gift during the lifetime of the recipient or giver of hibah on the condition that the property will be returned to the giver in case of death of the recipient
Terms Explanation
Ibra’ Rebate/waiver of partial or total claim against certain right or debt
Ibra’ mu`allaq  which is subject to certain condition and if the condition is satisfied, the ibra’ will be given
Ibra’ muqayyad  which is limited by certain contition
Ijarah Lease or service contract that involves benefit/usufruct of certain asset or work for an agreed payment or commission within an agreed period
Ijarah muntahia bi al-tamlik Lease contract which ends with acquisition of ownership of the asset by the lessee
Ijtihad Rigorous thinking and efforts by scholars who have attained the degree of mujtahid in order to issue certain Shariah ruling definitely in a matter which is not clearly provided in al-Quran or Sunnah
Isqat al-haq  Waive of right
Istiqrar ta`amul  "Smooth running of market
Istisna` muwazi  Parallel
Ittifaqiyyah Mutual agreement
Terms Explanation
Jumhur Majority
Terms Explanation
Kafalah Guarantee
Kafalah bi al-Ujr  Guarantee with fee
Kafil Guarantor
Terms Explanation
Terms Explanation
Makful `anhu  Guaranteed party
Makful lahu  Recipient of guarantee or beneficiary
Mani` Syar`ie  Shariah impediment
Marhun Charged property
Maslahah Public interest
Masnu` Manufactured item
Maysir Gambling
Mu`ayyan bi al-zat  Clearly identifiable and determinable in terms of location, quantity and quality
Mubara’ah Mutual waiving of right
Mudarabah Profit sharing contract
Mudarib Entrepreneur of a mudarabah joint venture
Mulzimah Binding
Muqaradah Refer mudarabah
Muqasah Offsetting
Muqtada al-`aqd  Objective of the contract
Murabahah Sale contract with a disclosure of the of the asset cost price and profit margin to the buyer
Murtahin A party who asks for collateral
Musahamah Mutual contribution
Musawamah Sale contract without the disclosure of the asset cost price and profit margin to the buyer
Musya` A feature of a jointly owned asset that cannot be separated or divided
Musyarakah Profit and loss sharing
mutanaqisah A contract of partnership that allows one (or more) partner(s) to give a right to gradually own his share of the asset to the remaining partners based on agreed terms
Musyarik Partner
Muta`arafan  Becoming common practice
Muwa`adah Binding promise of both parties
Terms Explanation
Nafaqah Cost of liability
Terms Explanation
Terms Explanation
Terms Explanation
Qabd Possession over a particular asset
Qard Loan contract
Qard hasan  Benevolent loan
Qawl al-jadid  New opinion
Qawl al-qadim  Earlier opinion
Qimah ismiyyah  Nominal price
Qimah suqiyyah  Market price
Qiradh Refer mudarabah
Qiyas Analogy
Terms Explanation
Rabbul mal  Capital owner/investor
Rahin Chargor
Rahn Pledge/charge
Rahn al-musya`  Charge on a jointly owned asset
Rahn rasmi  Surrender of charge via formal record in the registry of the authority
Terms Explanation
Sadd zarai`  Shariah approach in blocking the means that may lead to a person’s involvement in forbidden matters
Sighah The pronunciation of offer and acceptance
Siyasah Syar`iyyah  Basis and approach taken by the ruler for the interest of the nation and the people which is in line with Shariah principles
Sukuk Islamic  securities/bonds
Sukuk commodity murabahah Islamic securities based on tawarruq contact
Sukuk ijarah  Islamic securities based on ijarah contact
Syahadah al-dayn  Debt certificate
Syubhah Doubt
Terms Explanation
Ta`awun  Helping each other
Ta`widh  Compensation
Tabarru` Voluntary donation/contribution
Takaful A scheme which is based on the spirit of cooperation and helping each other by providing financial assistance to participants when needed and all participants mutually agree to give contribution for the said purpose
Taklufah Actual cost
Takyif Adaptation
Takyif fiqhi  Fiqh adaptation
Tanazul Waive of the entitlement to claim
Taqyid Limiting
Tasarruf Dealing
Tawarruq / commodity murabahah Purchasing an asset with deferred price, either on the basis of musawamah or murabahah, then selling it to a third party to obtain cash
Tawatu’ Pre-arrangement
Treaty Retakaful agreement between a takaful company and another takaful company (including conventional insurance company) which requires the takaful company to distribute or cede its underwritten risks and the takaful company or conventional insurance company which had concluded the agreement shall undertake the risks
Terms Explanation
Ujr `ala wakalah  Agency fee
Ujrah Commission
Terms Explanation
Terms Explanation
Wa`d  Promise
Wa`d bi al-syira’  Promise to buy
Wa`d mulzim  Binding promise
Wadi`ah  Safe keeping contract in which a party entrusted his property to another party for safe keeping and to be returned upon request
Wakaf  A form of endowment by an owner of a property for public benefit and wellbeing which is allowed by Shariah
Wakalah Agency contract
Wasi A person appointed to execute a will
Terms Explanation
Terms Explanation
Terms Explanation
Zari`ah ila riba  leading to riba
Zan al-ghalib  Presumption that is closer to certainty
Zimmah Liability
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