This research addresses a number of issues related to surplus distribution in takāful . The first section is devoted to revisiting the main financial concepts related to the surplus such as underwriting surplus and profit. Modes of distribution such as pro-rata and offsetting will also be discussed in the light of equity principle advocated by the Sharīʿah. The second section deals with the major juristic views and doctrines delineated against and in favour of surplus distribution. Legal doctrines such as ownership or otherwise surplus after donation will be meticulously discussed and reviewed in light of the current practices of takāful operators. The last section deals with a general outline of Sharīʿah parameters in relation to equitable surplus distribution, followed by scrutiny of surplus distribution practices of a number of takāful operators both in Malaysia and the Gulf States. This article argues that, while it is strongly recommended to redistribute the surplus to the participants only, there are exceptional reasons supported by Sharīʿah evidence allowing takāful operators to share in the surplus.
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Younes Soualhi (2016) studied this question.