CH 3 - INSURANCE & TAKAFUL

What is the main difference between Takaful and conventional insurance?

• Takaful is based on mutual cooperation

• Insurance is based on charity

• Takaful does not involve any contributions

• Insurance is only for life policies

What does the term 'Tabarru' refer to in Takaful?

• A risk-sharing agreement

• A fixed premium payment

• A donation or gift

• A type of insurance policy

Which of the following is a type of insurance that is not related to life policies?

• Takaful

• Reinsurance

• General Insurance

• Life Insurance

What is the primary purpose of the Takaful fund?

• To invest in high-risk ventures

• To cover administrative costs

• To pay for Takaful benefits

• To generate profits for the company

What is a key characteristic of the insurance contract that is considered 'Haram'?

• It is Sharia-compliant

• It is based on mutual assistance

• It promotes charity

• It involves excessive gharar

Which of the following is NOT a prohibited element in insurance practices?

• Riba

• Maysir

• Tabarru

• Gharar

What does 'Gharar' refer to in the context of insurance?

• A type of donation

• Uncertainty or ambiguity

• Interest on loans

• A fixed premium

What is the role of the Takaful Operator?

• To assume all risks

• To sell insurance policies

• To manage the Takaful business

• To provide loans to participants

Which of the following best describes 'Reinsurance'?

• Insurance that is Sharia-compliant

• Insurance shared among multiple companies

• Insurance for property damage

• Insurance for life policies

What is the Takaful Act 1984 significant for?

• It established the first Takaful company in Malaysia

• It defines the role of insurance agents

• It prohibits all forms of insurance

• It regulates conventional insurance