Acknowledgment of the Global Landscape of Islamic Mutual Assistance

A.   Licensed Takaful Operators Worldwide

Globally, over 130 licensed takaful operators are predominantly concentrated in Gulf Cooperation Council (GCC) countries such as Saudi Arabia, UAE, Bahrain, Qatar, Oman, and Kuwait, along with countries like Malaysia, Indonesia, Pakistan, Sudan, and certain parts of Africa. These organizations generally operate under a Tabarru’ model, which is a donation-based risk pool that forms the foundation of Takaful Funds, Risk Funds, or Mutual Assistance Funds. This cooperative system allows community members to contribute to a collective fund aimed at assisting those in need, embodying the principles of solidarity and mutual aid inherent in Islamic finance.

B.   Informal Community-Based Tabarru’ Funds

Alongside structured takaful operators, numerous informal, community-based Tabarru’ pools operate through local mosques, Islamic NGOs, burial societies, community mutual aid groups, and Islamic cooperatives. Examples include:

• Malaysia: “Khairat kematian” funds provide community-based funeral aid, alleviating financial burdens during times of loss.
• Indonesia: Baitul Mal wa Tamwil (BMT) cooperatives serve as microfinance institutions, facilitating financial support based on Islamic principles.
• Pakistan and Nigeria: Community mutual aid efforts often manifest as burial societies and informal assistance networks, crucial in supporting families in need.
• Somalia and the United Kingdom: Similar structures allow community members to pool resources for emergency relief and welfare support.

These community-managed schemes typically operate within a non-profit framework, emphasizing cooperative mutual aid without profit-driven motives.

ESTABLISHMENT AND OBJECTIVES OF THE “MY COMMUNITY FUND”

The “My Community Fund,” formally recognized as the “Community-Based Tabarru’ Mutual Assistance Fund,” signifies a critical initiative by the Cambodian Amanah Takaful Association (CATA) to nurture ta‘āwun (mutual assistance) and foster collective responsibility within the Muslim community in Cambodia. It is essential to clarify that this scheme does not function as conventional insurance and therefore does not guarantee contractual profit or return.

By conceptualizing the “My Community Fund,” CATA aims to:

• Promote Solidarity: Encourage members of the Muslim community in Cambodia to contribute to a collective fund dedicated to assisting those facing unforeseen hardships.
• Foster Community Engagement: Enable individuals to participate actively in local welfare initiatives, thereby strengthening communal ties and collective responsibility.
• Adapt Best Practices: Learn from the successes of existing mutual assistance models both locally and globally, tailoring them to fit the unique cultural and social landscape of Cambodia’s Muslim community.

Vision for the Future

The future vision for the “My Community Fund” includes expanding its reach and efficacy through educational programs, community training sessions, and partnerships with local NGOs and international organizations engaged in humanitarian and development efforts. By intertwining solidarity and responsibility throughout the community, CATA seeks to ensure that the Fund is sustainable, inclusive, and reflective of the altruistic values inherent within the Muslim faith.

DEFINITIONS

• Association: Refers to the Cambodian Amanah Takaful Association (CATA).
• Member: Any registered participant in the “My Community Fund” Scheme.
• Tabarru’ Fund (Risk Fund): A collective donation pool utilized for assisting members.
• Wakalah Fee: An administrative fee collected by CATA.
• Takaful Committee: The governing committee responsible for overseeing the Scheme.
• Qard Hasan: An interest-free loan extended to the Risk Fund when necessary.

NATURE OF CONTRIBUTION

Annual Contribution

Each member shall contribute an annual fee of KHR120,000 or (USD 30.00)

Allocation of Funds

• KHR100,000 or (USD 25.00) goes to the Tabarru’ (Risk Fund).
• KHR20,000 or (USD 5.00) covers the Wakalah Fee (administration costs).

Characteristics of Contributions

• The Tabarru’ portion is an irrevocable donation.
• Contributions are not classified as savings, investment deposits, or refundable premiums.

ELIGIBILITY

Entry Age

Members must be aged between 01 to 65 years.

Membership Requirements

Completion of a membership form and declaration is mandatory, with full payment of the annual fee required before membership activation.