Wakalah -Mubarah business model(profit based)

Wakalah _Mubarabah model (profit based)
The key features of the modified Wakalah business model may be summed as below:
1. Participants may pay their contributions into a common pool (the participants takaful fund)
2. The takaful pay their assumes a dual role the role: one as an agent or wakeel of the participants and receives pre-defined fees to cover the expenses for managing the business (underwriting operation)and the other as mudarib(manager) for investment of participants’ fund
3. The share holder of the takaful the shareholders of the takaful operator separately also contribute to a fund shareholders fund that is maintained separately from the participants takaful fund: the share holders are entitled to receive all the income from the investment of their fund
4. The takaful operator as an agent or wakeel manages the underwriting operations of the takaful business and invests the participant takaful funds in Sharaih –compliant assets and securities.
5. For the underwriting operations the takaful operator receives a predetermined fee as remuneration that may be an absolute amount or a percentage of the gross contributions received from the takaful participants.
6. For the investment operation receives an agreed share of the investment income. The takaful operator receives an agreed share of the investment income. The takaful operator may also be paid a performance fee separately.
7. Benefits are paid out to the participants against valid claims.
8. The income generated from investment of the participants, takaful funds is paid into participant takaful fund.
9. The takaful operator, as agent, does not share in either the risk borne by the takaful participants fund or any surplus/deficit of the fund resulting from the underwriting operations. this surplus is distributes fully to the participants required by the Shari’ah
10. Risks and losses are borne by the participants. At the periodic intervals, the surplus from the underwriting operations is computed; the net surplus may be the distributes among the participants; in case of deficit the participants are required to make additional contributions.
11. The takaful operator will provide a temporary interest-fee loan (qard-hasan) to cover any moss or deficit in the participants takaful fund; the fund; the loan is repaid from future surplus.