8.1. Application

(1) Paragraphs 8.2 to 8.4 apply to General Takaful Business.

(2) The calculation of Outstanding Claims Risk Component of the Takaful risk requirement is applicable only to every Takaful Funds and it does not apply to the Takaful Operator’s own balance sheet.

8.2. Outstanding Claims Risk Component

(1) The Outstanding Claims Risk Component is calculated for each of the Takaful Funds, as the sum of the amounts obtained by multiplying the Takaful Fund’s net liability for outstanding claims that falls within each Category of Takaful Business by the percentage applicable to that liability under table D. Table D Percentage factor— Outstanding Claims Risk Component

(2) In this rule: net liability for outstanding claims means the liability in respect of future claims referred in TRR 8.3.2 (Treatment of value of future claims payments), less any expected retakaful and non-retakaful recoveries in respect of that liability as at the Solvency Reference Date.

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8.3. AIFC-Incorporated Takaful Operator may apply for different percentages

(1) The AFSA may, by written notice, allow the AIFC-Incorporated Takaful Operator to use percentages other than those in table D if the AFSA is satisfied that:

• (a) adequate mortality and morbidity information exists in respect of that business; and
• (b) the information provides a reasonable basis for reliance on actuarial principles.

(2) The percentages that may be used must be those stated in the notice but may not be lower than 8%.

8.4. Certain contracts not included

(1) Family Takaful Contracts written to cover risks in General Takaful Categories 1 and 2 need not be included in the calculation of Outstanding Claims Risk Component for the Takaful Funds to which they are attributed.

(2) Family Takaful Contracts written to cover risks in General Takaful Cateogries 1 and 2, must be included in the calculation of the Family Takaful Risk Component.