Sharia Policy

Since its establishment, Solidarity Saudi Takaful Co. has committed to implementing Sharia in its activities and transactions. In order to achieve this objective, the Company has committed itself to having a Sharia Supervisory Commission independent of all the Company's departments.

The Company also organized all its affairs related to the Sharia aspect in regulations approved by the highest regulatory reference of the Company, called: (Company Sharia Policy and Sharia Supervisory Commission Regulations).

The importance of this regulations stems from the fact that it draws clear lines for all parties related to the Sharia aspects of the Company. This makes commitment to the Sharia rulings unrelated to individuals, but rather a clear law and mechanism to be followed and implemented.

Sharia Affairs Department prepared the draft of this regulations in the first quarter of 2011, and after the adoption of its draft by Sharia Supervisory Commission at its meeting held on 21/04/1431 A.H. corresponding to 26/03/2011 A.D., the draft was approved by the Commission of Directors to be approved by the shareholders first Extraordinary General Assembly held on 06/08/1433 A.H. corresponding to 26/06/2012 A.D. Thus, becoming a part of the Company's applicable laws and regulations.

Sharia Supervisory Commission

• His eminence Dr. Abdul Aziz Bin Fauzan Al-Fauzan (Saudi National).
• His eminence Dr. Yousif Bin Abdullah Al-Shubaily (Saudi National).
• His eminence Sheikh. Nedham Mohammed Saleh Yaqoubi (Bahraini National).

Members of the Commission are renowned for their competence, experience, and specialization in the Islamic economy. They have provided many researches in contemporary financial transactions such as banks and insurance, in addition to their membership in many local, regional, and international Sharia bodies. The Commission ensures the Company's compliance to Sharia rules and regulations in its transactions. Company Sharia Policy stated that the decisions of the Sharia Supervisory Commission are binding on all the Company's departments. The Company does not apply any product or agreement that affects the legality of the insurance performance unless it is submitted to the Sharia Supervisory Commission and approved by it. It also stated that the Commission is directly related to the General Assembly of the Company and is independent of all its departments.

Objectives of Sharia Supervisory Commission

• To indicate Sharia rulings in all the Company’s transactions.
• To ensure the Company's compliance with Sharia Law.
• To contribute in serving the development of the Company’s Sharia performance and preserving its Islamic identity in policies, standards, procedures … etc.
• To enhance the Company's participation in defining cooperative insurance regulated by Sharia rules and contributing to its development.

Functions of Sharia Supervisory Commission

Among the functions of the Commission stipulated in (Company Sharia Policy and Sharia Supervisory Commission Regulations):

• Sharia consideration of all Company’s transactions, including the establishment of subsidiaries and their activities, partnerships with others, and Sharia supervision on Company’s performance whether inside or outside the Kingdom of Saudi Arabia.
• Reviewing of the products provided by the Company to its customers and issuance of necessary statements in regard.
• Reviewing of contracts, agreements, forms, documents … etc., and issuance of necessary statements in regard.
• Setting of Sharia standards and controls related to the Company's various activities.
• Monitoring of the Company's compliance to Sharia Law provisions in all its activities and transactions and ensuring of proper implementation of the Board’s decisions.
• Setting of Sharia controls for the distribution of profits, surplus insurance, and loss loading and ensuring of the distribution in accordance with the Sharia rules approved by the Board.
• Contribution, with the departments concerned, to the development of products in light of Sharia Law provisions.
• Answering of Sharia inquiries of the Company's employees and customers.
• Sharia reviewing of the Company’s financial statements which includes ensuring the calculation of Zakat on according to Sharia Law.
• Issuance of the Company's annual statement of Sharia performance and recitation of it to the General Assembly.

Responsibilities of Company Towards Sharia Supervisory Commission

(Company Sharia Policy and Sharia Supervisory Commission Regulations) stipulated in the context:

• The Commission and Sharia Affairs Department have the full and undeniable right to access all data, information, agreements, and records relating to all operations of the Company, its subsidiaries and consultants. The responsibility for providing such data and information lies with the management of the executive company.
• The Company is obliged to inform the Commission early of any process to be entered in and to present any new documents, forms, or contracts that are planned for future use to be reviewed and approved by the Commission before they are issued.
• Not to use any document, form, or contract that has been put on Sharia notice unless it has been amended or changed and adopted again by the Commission.
• Provision of any clarifications requested by the Commission, especially those that the Commission believes to have occurred in violation of Sharia Law.
• Early presentation to the Commission of all documents, papers, contracts, and agreements presented to the Company from other entities and institutions, even if they have Sharia commissions, in order to enable the Commission to review and adopt them prior to the Company's participation and signature.
• The Company should enable its clients to review the decisions issued by the Commission regarding the Company's dealings with them.

Sharia Affairs Department

Sharia Affairs Department is subordinate to Sharia Supervisory Commission. It is a full-time body which supports the Commission in achieving its objectives and performing its duties. Sharia Affairs Department is administratively and financially a department subordinate to the Company's departments and is treated upon this regard according to the practice of the Company. However, it is technically linked to the Sharia Supervisory Commission, and in this regard, it is independent of all departments of the Company.

Functions of Sharia Affairs Department

Sharia Affairs Department supports Sharia Supervisory Commission in performing the powers and carrying out the tasks entrusted to it in accordance with the policies and procedures prescribed by the Commission, including but not limited to:

• Studying the Company's transactions and activities and preparing them for presentation to the Commission.
• Developing forms, contracts, and products in light of the provisions of Sharia law.
• Monitoring the implementation of the decisions of Sharia Supervisory Commission in all the Company's internal and external processes.
• Answering the inquiries of the Company's customers and employees in light of the decisions.
• Contributing to raising awareness of cooperative insurance regulated by the Sharia controls inside and outside the Company.
• Improving the Company's relationship with the relevant institutions, science centers, and Sharia bodies.
• Preparing, studying, proposing, and participating in the Sharia training programs for the Company's employees.

Due to the fact that Solidarity Takaful complies with Sharia rules according to the jurisprudence of its Sharia Commission in all its products, in accordance with the principles of cooperative insurance, it is committed to the following:

The Company maintains separate accounts for the insurance operations for the accounts related to the shareholders, as stipulated in the Implementation Regulations of the Cooperative Insurance Companies Control Law.

The Company is committed to investing all the money whether in relation to the shareholders or the policyholders in a manner that does not violates the provisions of Sharia Law, and in accordance with the Company’s investment policy approved by the Saudi Arabian Monetary Authority. The policyholders’ share of the investment income will be added to the total surplus of the insurance account or deducted from it after the calculation of the policyholders’ revenues and the deduction of their expenses realized.

The Company shall, in its capacity as Director of Insurance Operations, perform all the insurance activities provided for in this document for the benefit of the policyholders. In the event of a net surplus in the insurance account, it shall be distributed in the following order:

Solidarity Takaful has provided a channel of communication to investors in order to answer their queries, provide a radical analysis of the topics addressed, and help find appropriate solutions to maintain the desired level of investor satisfaction. Solidarity Takaful believes that knowing the expectations of the investor and the level of meeting those expectations is the way to improve and develop their services.

Investors Complaints policy

In compliance with Saudi Arabian Monetary Authority’s (SAMA) implementation regulations concerning the surplus distribution of insurance operations, Solidarity Takaful is committed to announcing the date of the surplus distribution to the beneficiaries in due course.
To know your eligibility, we hope you can use the following link:

https://e-services.solidarity.sa/surplus

• Financial Statements and Auditors' Report
• Report of the Audit Committee for the year ended 31 December 2017
• Report of the Board of Directors