SpicyTricks

When you participate in motor takaful, you contribute a sum of money to a general takaful fund in the form of participative contribution (tabarru'). You undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants suffer a loss because of an accident involving his vehicle. At maturity, you are entitled to a share of the surplus in the general takaful fund, if you did not make any claim during the period of takaful. The surplus will be shared between you and the takaful operator under the concept of surplus-sharing according to a pre-agreed ratio. Example: A takaful operator has a total surplus (S) of RM4 million and total general contribution (GC) of RM10 million. Your contribution (C) for the year is RM1,000 and the surplus will be shared between you and the takaful operator at a pre-agreed sharing ratio (PSR) of 50:50. The share of surplus that you will receive is calculated as follows: