94
5. In the case of deficit, it will solely be borne by the shareholders of the insurance
company based on qard hasan (which cannot be claimed back according to the
regulations).
FIGURE 20: T HE FLOW CHART OF THE 3RD C OOPERATIVE INSURANCE MODEL IN S AUDIA RABIA
Source: Letter of Approval from SAMA to Al Rajhi Takaful, and Interview with Sulaiman Mohammed Aljewisser
Description/ illustration of the Model:
presents the third model of the cooperative insurance implemented by Takaful Al
Rajhi company where:
1. Policyholders make contributions to the Takaful fund operated by the TO.
2. The collected funds will be used by the TO to pay the claims and for investment
purposes. The percentages of the operating expenses, the claims and investment are at
the discretion of the insurance company.
3. At the end of the financial year surplus or deficit is computed.
4. If there is any surplus, 10% of it will be distributed to the policyholders, and remaining
90% will be used to cover the wakalah fee, which is 40% for medical Takaful and 30%
for Motor and General Takaful (from the net premiums). If there is any remaining
amount, it will go back to the Takaful fund.
5. In the case of deficit, it will be borne by the shareholders of the insurance company
based on qard hassan (which cannot be claimed according to the regulations).
TPs TO
Surplus
?
Contribution
Yes No
10%
90% *
• Investment Outcome
• Claims
1 2
3
4
5