This fatwa acknowledges that the need to return a portion of tabarru' funds has already become prevalent in the insurance industry for those insurance holders who discontinue their policies before the term of their policy ends. The fatwa defines tabarru' funds as fees/bequests in the form of membership funds provided by individual shari'a insurance holders to insurance holders collectively (Tabarru' Pooling Fund). It defines returning tabarru' funds as returning a portion of tabarru' funds to insurance holders individually because they have discontinued their policies prior to the term of their policy ending.
The fatwa precludes shari'a insurance holders from individually requesting the return of tabarru' funds already paid to the insurance company as a representative of the insurance company collectively. Shari'a insurance companies, in their capacity as a representative of insurance holders, are not authorised to return tabarru' funds. However, shari'a insurance holders collectively, as recipients of tabarru' funds, have the authority to draft regulations regarding the utilisation of such funds, including their return to insurance holders individually who opt out of their policies prematurely. These regulations must cover the management of tabarru' funds, including their return to those opting out prematurely.