Why does the Board of Directors of SABB Takaful Company need to approve the Takaful surplus if the money belongs to the participants?
As the business does include some uncertainty in respect of claims or losses, which is not under the control of SABB Takaful, the Board may decide to distribute only a portion of the surplus in any year and reserve some to be distributed at a later time or in a year when a surplus could not be attained. This way, surplus distributions are more balanced and constant over a period of time. The Takaful surplus is also subject to the Insurance Regulations.
