NAMA: AHMAD SHAZZREN BIN AHMAD RIZALL

NO MATRIKS: I21205643

1. Indemnity
Answer:
The Takaful contract is a contract to pay the actual loss sustained by the participant
or a contract of indemnity. It is a mechanism by which the takaful operator provides
financial compensation in an attempt to place the participant in the same pecuniary
position he enjoyed right before the loss.

The takaful scheme in indemnifying the participant, is entitled to recover from third
party whose liable for the loss. In this case, participants receive compensation from
the third party through the takaful operator.

2. Insurance Interest
Answer:
Takaful is a type of Islamic insurance wherein members contribute money into a pool
system to guarantee each other against loss or damage. Takaful-branded insurance
is based on shariah or Islamic religious law, which explains how individuals are
responsible to cooperate and protect one another.

A person has an insurable interest in something when a loss or damage would cause
that person to specifically suffer a financial loss or certain other kinds of loss.

3. Utmost good Faith

Answer:
When deciding which risk to be covered, the takaful operator must ensure that the
specific exception to the risk to be covered should be revealed to the participants
and the participants in return should disclose any aspect related to the risk
associated with them, which needs to be underwritten, example his full health
conditions should be disclosed in the case of a medical cover.