Takaful and Conventional Terminology

The terminology used for Takaful and Conventional are difference. We have to use the correct terminology because it will reflect either it is a Takaful Certificate or an Insurance Policy.

There is few basics terminology which being used in daily insurance business:

No	Conventional	Takaful
1	Policy	Certificate
2	Policy Contract	Takaful Certificate
3	Policy Information Page	Takaful Schedule
4	Premium	Contribution
5	Single Premium	Single Contribution
6	Life Insured	Participant
7	Policy Owner	Certificate Owner
8	Insurance Charges	Wakalah/ Mudharabah Fee*
9	Insurance Risk Premium	Tabarru’ Amount
10	Sum Insured	Sum Covered
11	Investment Account	Participant Account
12	Risk Fund	Tabarru’ Fund
13	Cooling Off Period	Khiyyar
14	Insurance Agent	Wakil Takaful

This terminology must be correctly for Takaful and Insurance.

·         It depends on the insurance company either practising Wakalah or Mudharabah Fee concept