Fatwa is providing a ruling (opinion) on a point of Islamic Shari'ah issued by an expert in religious law (mufti), pertaining to a specific issue, usually at the request of an individual.
The religious opinions (fatawa) published here express the fiqh (Islamic jurisprudence) self understanding and the personal opinion of the Shari’ah adviser. These understandings benefit from all schools of fiqh (Islamic jurisprudence). Therefore, the answer of a specific question may vary from one adviser to another. The fact of having more than one view and opinion is a mercy.
These religious opinions (fatawa) do not reflect the opinion of the Shari’ah Board of Minhaj unless it specifies so.
Dow Jones has a prominent Shari’ah Scholars. They put standards for all their Islamic Indices. You have the option to follow their standards or any other Shari’ah board standards.
Generally speaking, all Islamic banks in Saudi Arabia have Shari’ah board and the revise the banks’ operations. They have their own fatwas and we respect all their ijtihad (self exertion).
We have two terms to accept Islamic window in insurance company:
1- To have separate financial accounts and this is technically possible. And
2- To have Shari’ah board to control the window operation.
All other terms and conditions are not in contradictions.
The person who received the Arbun should pay Zakat on this amount because this amount will be his property in any case. Meanwhile the person who paid the Arbun will lose the Arbun amount in all cases.
Takaful – Islamic insurance – is founded on the cooperative principle and on the principle of separation between the funds and operations of shareholders, thus passing the ownership of the Takaful (Insurance) fund and operations to the policyholders.
The premiums collected from the policyholders are considered as donations and they constitute the Takaful fund from which all claims are reimbursed.
At the end of each financial year, after deduction of expenses, any remaining cash surplus will not be retained by the company or its shareholders, but returned to the policyholders in the form of cash dividends or distributions.
In this respect, Takaful business is different from the conventional insurance in which the policyholders, rather than the shareholders, solely benefit from the profits generated from the Takaful and Investment assets.
The Investment assets representing the Takaful fund that accumulate over the retained reserves, surpluses and provisions are invested by the shareholders who manage the company on behalf of the policyholders. The shareholders are rewarded with a percentage of the profit on these investments.