Takaful Model Premiums are voluntary contributions (Tabarru) to collectively insure the participants Policyholders (Participants) collectively own the Takaful Fund/Risk pool (TF) to cover losses. The Company (Watania) manages the pool according to Wakala model and receive fees Payment of Premiums to Risk Pool are voluntary for mutual assistance without individual monetary gain Investments are directed towards acceptable businesses/ industries and returns are Riba free Policyholders are owners of the Risk Pool and entitled to its profits Committed to channeling funds to industries, businesses and activities that are good for society and environment The Participant pays contribution An upfront fee is deducted from contribution and paid to the Shareholders Fund (SF) under the Wakala contract The balance of the contribution is paid into the TF TF pays for claims, retakaful, acquisition cost, change in reserves while it earns investment profit on the balance amount SF is responsible for meeting operating expenses of TF Some portion of the investment profits of TF goes to SF as fee under the Mudaraba contract If there is a deficiency in the TF, the SF will give a Qard Al Hasan (interest free loan) to the TF to cover deficit After setting aside reserve for stabilizing future surplus and paying for performance fee to SF, TF will pay surplus back to participants A pool of money representing contributions donated by all participants out of which claims are paid. It also accounts for investment gains and losses less any contributions paid for retakaful. Watania reserves the right to reinsure the whole fund which case TF will be nil and all claims and benefits will be paid under our retakaful program. Surplus or loss arises in TF depending on the number and amount of claims paid on collective basis and on investment performance of assets where in TF is invested. Watania may put aside part of this surplus as reserve to strengthen the claim paying ability of TF. Any surplus after company charges arising on pro rata basis related to contributions paid, accrues to the policy and payable at expiry of the term Any claim paid under the policy is taken into account. The surplus may not be payable if the claim paid under that policy exceeds the Contribution made. If there is overall loss in TF, Watania finances such loss on interest free basis until TF turns into surplus and its loan is paid back as top priority. Watania is entitled to receive a share in underwriting surplus as performance fee provided some minimum level is earmarked for participants first. As Watania is acting as Manager of TF it must receive a defined amount as its fee/charges. This is expressed as: a percentage of Gross Contribution as upfront Wakala Fee a percentage of policyholders investment income a percentage of underwriting surplus as performance fee after accruing minimum percentage of (1) as above Watania Fee shall not exceed maximum limits as agreed with its Shariahh Committee beginning of every year.