Islamic finance in Europe (32)

Continuation

The author writes:

The takaful company acts as the manager of the fund.

 There is an agency contract.

A remuneration is seen as a share in any surplus.

This being the difference between the takaful fund and any payments made.

Funds are usually invested on the basis of Shari’ah-compliant contracts.

Particularly, those featuring mudarabah.

Prohibitions under the Quran also include haram (forbidden) activities, which are primarily related to:

-      tobacco;

-      pornography;

-      arms;

-      alcohol;

-      pork;

-      and gambling.

From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)