Glossary
Ta'wīdh تعويض
Compensation agreed upon by the contracting parties as a payment that can be claimed by the creditor when the debtor defaults in the payment of his debt. Shariah Advisory Council of Bank Negara Malaysia decided that the ta'widh may be imposed on the defaulting debtor who fails to meet his obligation to pay the financing based on the following conditions:
i. The amount of ta'widh cannot exceed the actual loss suffered by the financier;
ii. The determination of compensation is made by a third party, which is Bank Negara Malaysia; and
iii. The default or delay of payment is due to negligence on the part of the debtor.
Tabarru’
A portion of participant’s contribution for the purpose of mutual helps and used to pay claims submitted by eligible claimants.
Tadlīs al-'aib تدليس العيب
An act of a seller intentionally hiding the defects of goods, which is clearly prohibited by Sharīah.
Takaful Annuity
A contract that provides a stream of periodic income upon retirement for a term dependent upon human life.
Takāful تكافل
Sharīah compliant insurance i.e. a protection plan based on Sharīah requirements (concept of sharing and protecting of one another via contribution to a pool by taking advantage of a sizeable group). A person becomes a participant by undertaking a contract of tabarru' and paying a participative contribution (tabarru') to a common takāful fund whereby he allows his contributions to be used to help other participants whenever they suffer defined losses. The commercial contracts of mudhārabah and wakālah are incorporated into tabarru' contracts to increase the size of the takāful fund.
Tanājush تناجش
A conspiracy between a seller and a buyer wherein the seller is willing to sell the asset at a price higher than that of the market. This is done so that others will rush to buy the asset at a higher price, resulting in the seller obtaining a huge profit. This act is clearly prohibited by Sharīah.
Tawarruq تورق
It is the purchase of a commodity (i.e the subject matter of tawarruq) on deferred payment basis by way of either bai' musāwamah or bai' murābahah. The commodity is then sold for cash to a party other than the original seller.
Tijari
Commercial or private section
