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  • Internal Shari’ah Supervision Committee

    • Article (12) Formation of the Internal Shari’ah Supervision Committee

      12.1The Company must form a committee to be called the Internal Shari’ah Supervision Committee (“ISSC”). The ISSC must consist of at least three members nominated and appointed as follows:
      1. The ISSC members must be nominated by the Company’s board of directors.
      2. The candidates' names and qualifications must be presented to the HSA at the Central Bank for approval at least forty-five days prior to the meeting of the Company's general assembly. In case the approval request is declined, the Company must nominate a substitute to the disapproved candidate.
      3. The candidates' names must be presented to the Company's general assembly to approve their appointment as ISSC members and must inform the Central Bank of the names of those appointed as ISSC members within ten days after the general assembly meeting.
      4. The ISSC membership term must be three years, which can be renewable.
      5. The ISSC members must elect a chairman and vice-chairman from amongst them. The chairman shall represent the ISSC before the Company’s board of directors, its general assembly, the Central Bank, and the HSA.
      12.2In case a ISSC membership seat becomes vacant, the Company's board of directors must appoint a member to fill in the vacant membership to complete the duration stated in the Article (12.1/d), after presenting the nominee’s name and qualification to the HSA for approval. Such appointment must be presented to the general assembly of the Company in its first subsequent meeting for approval.

    • Article (13) Fit and Proper Criteria

      A candidate to be a member in the ISSC must meet the conditions and criteria adopted by the HSA and issued by the Central Bank under this Regulation. Previous provisions in this regard must apply until the relevant standards are issued by the HSA.

    • Article (14) Responsibilities of the Internal Shari’ah Supervision Committee

      14.1The ISSC must undertake the following:
      1. Set the basic Shari’ah principles for the Company’s operations.
      2. Review all the Company's transactions, the Takaful insurance products, policies, contracts, and documents which the Company uses in order to ensure compliance with the Islamic Shari’ah Provisions; and approve the same before placing them into practical use.
      3. Review the Takaful insurance transactions and the investments conducted by the Company, and show to what extent they are compliant with the Islamic Shari’ah Provisions.
      4. Approve any activity carried out by the Company or reject it, if such activity is not compliant with the Islamic Shari’ah Provisions.
      5. Issue Fatwas, resolutions, and providing opinions in relation to Company’s activities presented to the ISSC. Insurance broker, surveyor, adjustor and consultant, and actuary - associated with a specific Takaful Insurance operation in a Takaful Insurance Company - may seek the opinion of the ISSC of the Company regarding the Islamic Shari’ah Provision for the operation they are involved in, and do that through the Company. The ISSC must provide them with its opinion through the Company.
      14.2The ISSC may undertake other responsibilities that may be required by the HSA and issued by the Central Bank under this Regulation.

    • Article (15) Authorities of the Internal Shari’ah Supervision Committee

      The ISSC resolutions are binding on the Company. The ISSC must have the right to access, at any time, all Company's records, contracts, and documents. The ISSC may require clarifications as it deems necessary to perform its tasks and the Company's senior management must provide such clarifications. In case the ISSC was not enabled to perform its functions, it must state that in a report to the board of directors. If the board of directors fails to meet the ISSC’s request, it must notify the HSA, whose resolution must be binding on the Company.

    • Article (16) The Charter of the Internal Shari’ah Supervision Committee

      The Company must set, by a resolution of its board of directors, the charter for the ISSC. The charter must be in accordance with the format set by the HSA, and a copy thereof must be sent to the Central Bank for approval.

    • Article (17) Annual Shari’ah Report

      17.1The ISSC must prepare an Annual Shari’ah Report to the Company's general assembly, and it must be in accordance with the format set by the HSA, indicating the compliance of the Company with the provisions of Islamic Shari’ah in all its businesses and activities.
      17.2The ISSC must provide the HSA with a copy of the Annual Shari’ah Report no later than one month prior to the date of the general assembly of the Company, in order to make any comments.