 In this module, we would further go towards an alternative to insurance company from an Islamic viewpoint. Takaful is presented as an alternative to conventional insurance. Takaful is an Arabic word, the origin of which is kafala, but not the kafala as a contract I explained in the previous module, kafala as an Arabic word, which means to offer some kind of guarantee, to offer some kind of protection, to offer some kind of help. And takaful is basically mutual protection, protecting each other. So that is takaful, the word takaful. Takaful business, which has now been developed in many parts of the Muslim world, including in Pakistan, makes sure that there are no elements of Reba, Ghurr and Mysar i.e. gambling or Jua in its operation. These three elements were identified as objectionable in the case of conventional insurance. So this takaful business ensures that these three prohibited items are not there, or these three prohibited elements are not there in an Islamic alternative to insurance. The basic or fundamental contract which is used in takaful business is called tabarro. Tabarro, which is an Arabic word, which means donation. So donation is actually the main contract which is used in takaful, or it is a contract on which the whole takaful business has been developed. This tabarro or donation ensures that there is no Ghurr, Mysar or Reba in the case of Islamic insurance, if we may call takaful as such. Of course, there are other contracts also involved in the structure and operations of takaful. We may have contracts like Wakala, Mudarba, in some cases Kafala as well, and Wakf. So there are different models depending on which contract is being used by a party which is called takaful operator. Takaful as an Islamic insurance business involves two main entities. There could be so many other entities. However, I am talking about main entities. There is a takaful operator and there is a takaful fund. What is a takaful operator? Of course, it is a company. It is an independent company mandated to set up a takaful fund and manage it in light of the rules of Sharia. So it is a manager. It is a management company, a takaful management company which sets up the takaful fund as a fund or as a company depending on the preference of the stakeholders or depending on the insurance regulations in a particular country. The takaful fund may or may not be a company as I said, but must have segregated business from the takaful operator. So these are two independent entities. The takaful operator, which could be a company, in most cases it is required to be a company, but the takaful fund could be an entity. It may not be a company, it may be a legally recognized entity. The takaful operator receives remuneration for the services it provides to the takaful fund because the takaful operator is the manager of the takaful fund. Of course, it would like to receive some compensation for its services. The takaful policyholders, we do not call them the takaful policyholders, but I am using this for simplicity. They are known as participants. So participants technically own the takaful fund, but of course they do not have direct control on it individually. Of course, as the collective body, they can exercise control on the takaful fund. So there is a takaful operator, the takaful management company, there is a takaful fund and then I have identified the participants. Like insurance policyholders, we have participants in case of the takaful. Now the participants, they are actually named beneficiaries of the proceeds from the takaful fund. So they are the main beneficiaries. Let us look at the generic model of the takaful business. Now the upper part, this is the conventional story. We have this someone paying premiums to an insurance company and receiving some defined benefits up to a limit during a certain time period. In case of the takaful, we have this someone who contributes donations. We do not call the contributions of this guy as premium, rather we say these are donations and they are actually donations. And these donations, they go to this takaful fund, which is independent of the takaful operator. The takaful operator only manages this takaful fund and receives a fee for that one. Now donations are contributed to this one with the expectations that this person would be receiving some defined benefits up to a limit during certain time period. So although there are similarities between conventional insurance and the takaful business, however, of course there are some differences. The major difference is the establishment of this takaful fund. Now at the end, I would like to summarize that there are three main parties. First one is the takaful operator, the takaful management company, the takaful fund and we have participants. If we go into further details, there would be so many other parties as well. There could be an investment separate independent investment manager, there could be marketing company, I'm not going into all those details. I am looking into the nucleus of the takaful business to their three main parties. Similarly, when it comes to different takaful models, there could be a model based on Wakala and we would look into it, Mudarbha or Wakf. So depending on which underlying contract is being used, we would call a particular model of the takaful as such. So there would be Wakala based takaful model, there would be Mudarbha based takaful model, there would be Wakf based takaful model and all these models we shall cover in next modules.