Q1. Discuss in detail the various functions involved in “Transaction Cycle”. (2 Marks)
Q2. Review the information about types of insurance and identify that in each of the following cases, which type of insurance will be applicable for insured: (1 Mark)
Insurance that covers movable property. An example of such kind of property could be a tourist’s personal property.
Insurance that covers the loss that arises due to sickness and by visiting to a doctor.
Insurance covers the risk of insured arises because of an accident when he was driving his car and got damage in the vehicle.
Insurance that covers damage of the house property of policyholder.
Due to short circuit, building owned by insured got a fire and got loss of significant items.
Q3. Differentiate between conventional insurance and takaful system focusing on the three elements that makes the conventional insurance (haram) prohibited under Islam laws. (2 Marks)
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