Waqf Wakala Model Case Study

3.12 Major Takaful Models in the World:-
The first takaful company in the world, with the name of Islamic Insurance Company, Sudan, was established by Faisal Islamic Bank (Sudan) in 1978, while the company started its operation in January 1979.The model was ‘’Mudaraba Model”, which was adopted by other companies in the middle East & East Asian companies at that time too. Later on the ‘’Wakala model” also became popular around the world. In 2003, Islamic Scholars in Pakistan developed the ‘’Waqf-Wakala Model”, which is the formally approved model for Takaful companies in Pakistan.
It is worth noting that the legal structuring of the pool of funds (choice of vehicle), the investment of those funds (investment strategy) as per the agreement with the Takaful operator (usually a partnership/agency

 Like the Wakala Model, the operational expenses that are incurred for providing Takaful services are also met from the same fund`s gross contributions received.
 Specific plans offer level and variable Annuity options, which allow the client to continue getting benefits from PIA investment, after the maturity of the plan.
Wakala/Waqf Model of Takaful & Investment shows that how the participants contribute in the Takaful Company and where the Takaful Company invest that money. 3.13 DFT’s Investment & Protection Funds in its Family Takaful Plans
As discussed that, the Takaful sector in Pakistan follows the “Wakala-Waqf Model” – as per regulations by SECP’s Takaful Rules. DFT’s working model is similarly based on the same model. However, in order to become more competitive, DFT plans contain specific USPs (Unique Selling Propositions), which have unable our workforce to offer greater benefits over other companies in the Pakistan market.

PARTICIPANT CONTRIBUTION

4 CONCLUSION OF THE