Takaful Operator / Window Takaful Operator ( Window Takaful Operator means a conventional insurer offering Takaful services through Window Operations as per Takaful Rules 2012 issued by Securities and Exchange Commission of Pakistan) is an organization which manages Takaful Fund and takes up the responsibility of determining contribution amount, collection of contributions and paying claims to eligible Participants. In this role the Takaful Operator charges ‘Wakalah’ fee for its services.

Following are a set of controlling documents for Takaful:

• Insurance Ordinance 2000
• Insurance Rules 2002
• Takaful Rules 2012

Securities and Exchange Commission of Pakistan is the regulator for all insurance and Takaful companies in Pakistan

Contribution means the amount payable by the participant to an operator under a Takaful contract.

The term ‘Wakalah’ (Agency) is derived from the word ‘Wakeel’ (Agent). It is the fee incurred by a Takaful Operator from the Participants Takaful Fund to manage the Takaful Fund.

Participant means a person who participates in a Takaful scheme and to whom a Takaful Contract is issued.

The contributions are invested in Shari’ah compliant mutual funds. The investments have the approval of the Shari’ah Advisor of IGI Life Insurance – Window Takaful Operations.

Differences between Conventional Insurance and Takaful
a) The fundamental difference between conventional insurance and Takaful is the “Change of nature of contract” from Aqd-e-Muawaza to Aqd-e-Taburru. This has eliminated Riba; and Rendered Gharar and Qimar/Maysir Ineffective.
b) A contribution goes into the Waqf Fund & Waqf Fund belongs to Allah (SWT).
c) The Waqf Fund pays the claims.
d) Contributions are invested only in Shari’ah Compliant business avenues.
e) An independent Shari’ah Board/ Shari’ah Advisorsupervise business activities for Shari’ah compliance.