Article (4) Definitions

N 5877/2024 Effective from 6/12/2024

For the purposes of this Standard, the following words and phrases shall have the meanings stated below.

a.

Senior Management: The individuals or body responsible for managing the Company on a day-to-day basis in accordance with strategies, policies and procedures set out by the Board, generally including, but not limited to, the chief executive officer, chief financial officer, chief risk officer, and heads of functions of compliance, Internal Shari’ah Control, internal audit and Internal Shari’ah Audit.

b.

Internal Shari’ah Control Division (or Section): A technical division (or section) in the Takaful Insurance Company that supports the ISSC in its mandate.

c.

Compliance with Islamic Shari’ah Provisions: It refers to compliance with Islamic Shari’ah in according with:

a.	The provisions stated in Section Six of Book Three of the Commercial Transactions Law,
b.	The provisions contained in the bylaws issued implementing Section Six of Book Three of the Commercial Transactions Law,
c.	The resolutions, Fatwas, regulations and standards issued or adopted by the Higher Shari’ah Authority in relation to businesses and activities of the Company ("HSA’s Resolutions"),
d.	The resolutions and Fatwas issued or approved by the Internal Shari’ah Supervision Committee of the respective Company, in relation to businesses and activities of such Company ("ISSC’s Resolutions"), provided that they do not contradict HSA’s Resolutions.

d.

Exteranal Shari’ah Audit: An independent process to inspect and assess the Company’s compliance with Islamic Shari’ah Provisions, and the level of adequacy and effectiveness of its Shari’ah governance systems for the relevant fiscal year, conducted by an external party.

e.

Internal Shari’ah Audit: The regular process to inspect and assess the Company’s compliance with Islamic Shari’ah Provisions and the level of adequacy and effectiveness of Company’s Shari’ah governance systems conducted by the Internal Shari’ah Audit division or department.

f.

Company/Companies: The Takaful Insurance Company, which is incorporated and practices its business in accordance with the provisions of the Law, the Executive Regulation and the Regulation regarding Takaful Insurance, and whose all businesses and activities are in accordance with the Islamic Shari’ah Provisions.

g.

Commercial Transactions Law: Federal Decree Law No. (50) of 2022 regarding the Commercial Transactions Law.

h.

Internal Shari’ah Supervision Committee (“ISSC”): A body appointed by a Company, comprised of scholars specialized in Islamic financial transactions, which independently supervises transactions, activities, and products of the Company and ensure its compliance with Islamic Shari’ah Provisions in all its objectives, activities, operations, and code of conduct.

i.

Board: Takaful Insurance Company’s board of directors.

j.

Shari’ah Non-Compliance Risks: Probability of financial loss or reputational risk that Takaful Insurance Company might incur for not complying with Islamic Shari’ah Provisions.

k.

External Shari’ah Auditor: The Shari’ah audit firm and the individual audit engagement team members conducting the Shari’ah audit. Where relevant, specific references are made to the external Shari’ah audit firm only in certain paragraphs.

l.

Central Bank: The Central Bank of the United Arab Emirates.

m.

Regulation: Regulation regarding Takaful Insurance issued in 2022.

n.

Higher Shari’ah Authority: An authority that exercises the mandates and authorities stipulated in the Decretal Federal Law No. (48) of 2023 Regarding the Insurance Law.