IFMP Bancatakaful Certification (BTC), Pakistan flashcards
IFMP Bancatakaful Certification (BTC), Pakistan · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Tabarru'
- An irrevocable donation or contribution made by a takaful participant into the pooled fund, intended to provide mutual help to fellow participants who suffer a covered loss.
- Riba
- Any predetermined increase or advantage charged on a loan of money, or an unjust exchange in trade; prohibited in Islamic finance, so takaful uses donation and profit-sharing instead of interest.
- Gharar
- Excessive uncertainty or ambiguity in the essential terms of a contract. Takaful reduces gharar through clear policy wording, disclosed contribution amounts and defined surplus-sharing ratios.
- Ta'awun
- Mutual assistance and solidarity among members of a group. Along with tabarru', it forms the ethical basis of takaful, where participants share risk rather than transfer it for profit.
- Family takaful
- Takaful class covering death, disability and survival risks of individuals, often combining protection with long-term savings or investment elements, with benefits paid from the participant fund.
- General takaful
- Takaful class covering short-term, usually annual, non-life risks such as motor, fire, marine, health and travel, with contributions pooled to meet that year's claims.
- Wakala model
- A takaful arrangement where the operator acts as the participants' agent for a fixed fee, usually a percentage of contributions, sometimes with a performance fee, bearing its own management expenses.
- Mudarabah model
- A profit-sharing arrangement in which the operator acts as mudarib and shares investment profit with participants at a pre-agreed ratio; financial loss falls on participants unless the operator is negligent.
- Hybrid wakala-mudarabah
- A combined model where the operator charges an agency fee for underwriting and management and separately earns a mudarabah share of the investment profit generated by the participant fund.
- Qard hasan in takaful
- An interest-free loan given by the takaful operator to the participant fund when claims and expenses exceed contributions; it is repaid from future surplus of the fund.
- Participant fund surplus
- The excess of contributions and investment income over claims, expenses and reserves in the participant fund, distributed to eligible participants or retained as approved by the Shariah advisor.
- Retakaful
- Shariah-compliant reinsurance under which a takaful operator transfers part of its risk to another takaful or retakaful operator, protecting solvency and stabilising claim outcomes.
- Bancatakaful
- Distribution of Shariah-compliant takaful products to a bank's customers through its branch network or digital channels, with the bank acting as agent or introducer.
- Credit takaful
- Family takaful covering a borrower's outstanding financing balance on death or disability, so the bank is repaid and the family's liability is cleared; cover reduces as principal is repaid.
- Corporate agency model
- A bancatakaful arrangement where the bank, as a registered corporate agent of the takaful operator, sells and services products, earning commission and carrying defined responsibilities.
- Referral distribution model
- A model where the bank only introduces customers to the takaful operator or its staff for a referral fee, without advising, selling or handling contributions itself.
- Group family takaful
- A single master takaful contract covering a defined group, such as all borrowers of a bank, with each member receiving cover under an individual group certificate.
- Takaful Rules 2012
- SECP-issued rules in Pakistan governing takaful operators, covering licensing, capital, participant fund segregation, surplus distribution, Shariah advisory arrangements and financial reporting requirements.
- Shariah Advisor
- An individual scholar appointed by a takaful operator, whose appointment is approved by SECP, to rule on the Shariah compliance of products, investments and operations.
- SBP Shariah Governance Framework
- The State Bank of Pakistan framework requiring Islamic banking institutions to maintain a Shariah Board, a Shariah compliance department, Shariah audit and an annual Shariah compliance report.
- Banking Mohtasib
- A statutory grievance redressal forum in Pakistan for bank customers, hearing complaints against banks after the bank's own complaint handling has failed to resolve the matter.
- Shariah audit
- An independent review testing whether a takaful or Islamic banking operation complies with Shariah rulings, including product structures, income allocation and segregation of non-compliant earnings.
- Need-based selling
- A sales approach that identifies the customer's actual protection or savings gap before recommending a product, rather than pushing products to meet sales targets.
- Suitability assessment
- The documented evaluation of a customer's income, obligations, risk appetite and needs, used to confirm that a recommended takaful product is appropriate for that customer.
- Product illustration disclosure
- Presentation to the customer of contribution amounts, coverage, exclusions, waiting periods, charges and surplus-sharing basis, plus a clear statement that illustrated investment returns are not guaranteed.
- Persistency
- The proportion of takaful policies or certificates still in force and paid-up at a given time, used to measure sales quality and customer satisfaction.
- Mis-selling
- Selling a product by misrepresenting its features, hiding exclusions or charges, or recommending cover that does not fit the customer's needs or circumstances.
- Financial Monitoring Unit
- Pakistan's financial intelligence unit, established under the Anti-Money Laundering Act 2010, which receives and analyses suspicious transaction and currency transaction reports from financial institutions.
- Suspicious Transaction Report
- A confidential report filed with the Financial Monitoring Unit when a transaction appears unusual, inconsistent with the customer's profile, or linked to possible money laundering or terrorist financing.
- Currency Transaction Report
- A report filed with the Financial Monitoring Unit for cash transactions at or above the prescribed threshold, currently two million Pakistani rupees, regardless of suspicion.
- Politically exposed person
- A person entrusted with prominent public office, plus close family members and associates, who is treated as higher risk and requires enhanced due diligence and senior management approval.
- Tipping-off
- Disclosing to a customer or a third party that a suspicious transaction report has been or will be filed, which is prohibited under anti-money-laundering law.