WorksheetsINS200 C8 Takaful Insurance Quiz
Total questions: 15
Worksheet time: 8mins
What is the nature of takaful?
Members compete against each other for insurance coverage
Members contribute money into a pool system to guarantee each other against loss or damage
Members receive free insurance without contributing any money
Members invest their money in a high-risk stock market
What are the three elements prohibited in takaful?
Interest, investment, security
Interest, lottery, risk
Interest, speculation, certainty
Interest, gambling, uncertainty
According to Islamic law, what is the primary source of Islamic law?
Quran and Sunnah
Hadith and Ijma
Qiyas and Ijma
Ijma and Hadith
What is the concept of tabarru' in takaful?
Participants make a donation to a risk fund to help and assist each other in the event of loss or damage
Participants receive free insurance without contributing any money
Participants compete to earn the highest returns on their contributions
Participants invest their money in a high-risk stock market
What is the basis of a takaful contract?
Affordability and spiritual satisfaction
Risk transfer
Profit maximization
Risk sharing
In takaful, how are the operating expenses handled?
Operating expenses are covered by the insurance company's profits
Operating expenses are charged to the participants without any choice
Operating expenses can either be borne by the shareholders’ fund (under mudharabah model) or be charged to the participants as fixed upfront charges (under wakalah model)
Operating expenses are covered by the government
What is the concept of ta'awun in takaful?
Mutual help among the group of participants to provide financial assistance to fellow participants who have suffered loss
Competition among participants to earn the highest returns on their contributions
Participants invest their money in a high-risk stock market
Participants receive free insurance without contributing any money
What is the origin of takaful according to the text?
Takaful was introduced by the Prophet Muhammad SAW
Takaful originated from Western insurance practices
Takaful was introduced by modern Islamic scholars
The foundation of shared responsibility or Takaful was laid down in the system of ‘Aaqilah’
What is the concept of donation, gifts, or contribution in takaful?
The participants invest their money in a high-risk stock market
The participants receive free insurance without contributing any money
The participants compete to earn the highest returns on their contributions
The participants of a takaful plan make an agreement to deposit a certain proportion of takaful contributions into a risk fund
What is the concept of mutual cooperation in takaful?
The participants invest their money in a high-risk stock market
The participants receive free insurance without contributing any money
The participants compete to earn the highest returns on their contributions
The contributions from the takaful participants in the tabarru’ fund allow them to provide financial assistance to fellow participants who have suffered loss
What is the concept of risk transfer in takaful?
Affordability and spiritual satisfaction
Risk sharing
Risk transfer
Profit maximization
What is the concept of risk sharing in takaful?
Risk transfer
Affordability and spiritual satisfaction
Risk sharing
Profit maximization
What is the concept of mutual benefit for participants in takaful?
Investment of fund
Mutual benefit for participants
Profit for shareholders
Operating expenses
How are the assets of the takaful funds invested?
In Shariah compliant instruments
In high-risk stock market
In conventional interest-based instruments
In government bonds
What is the form of contract in takaful?
Islamic contracts of Wakala or Mudarbah with Tabar’ru (contributions)
Contract of Sale
Interest-based contract
Conventional insurance contract
