---
title: "What is Wakalah fee (takaful operator)? | IslamicOpenFinance™"
description: "The fee a takaful operator charges, usually from contributions, for managing the participants' risk fund."
url: https://islamicopenfinance.com/glossary/takaful-wakalah-fee/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Takaful](https://islamicopenfinance.com/glossary/#takaful)

Takaful

# Wakalah fee (takaful operator)

The fee a takaful operator charges, usually from contributions, for managing the participants' risk fund.

The wakalah fee is the remuneration a takaful operator receives as agent for managing the participants' risk fund. The IFSB's conduct of business standard describes contributions as comprising a service component, the wakalah fee for the operator's management and marketing services credited to the shareholders' funds, and a protection component, the tabarru, channelled to the risk fund. AAOIFI's takaful standard says the operator is not entitled to any share of the underwriting surplus, so its income must come from disclosed fees and, where it manages investments as mudarib, from a share of investment profit.

## Sources

- [IFSB-29 Conduct of Business Supervision for Takaful Undertakings, 2023: contributions, wakalah fee and tabarru components](https://www.ifsb.org/wp-content/uploads/2023/12/IFSB-29-Conduct-of-Business-Supervision-for-Takaful-Undertakings.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Wakalah model (takaful)** The takaful model in which participants appoint the operator as agent to run underwriting and investment for a known fee.](https://islamicopenfinance.com/glossary/wakalah-model/) [**Takaful operator** The entity that manages a takaful business on behalf of participants, usually for a fee, a profit share or both.](https://islamicopenfinance.com/glossary/takaful-operator/) [**Tabarru** The donation portion of a takaful contribution, paid into the risk fund to meet claims as mutual help.](https://islamicopenfinance.com/glossary/tabarru/) [**Participants' risk fund** The pool of donated contributions from which takaful claims are paid, owned collectively by participants and managed by the operator.](https://islamicopenfinance.com/glossary/participants-risk-fund/) [**Paid agency (wakalah bil ujrah)** An agency in which the agent is paid a fee; the fee must be known, and the arrangement follows the rules of ijarah.](https://islamicopenfinance.com/glossary/paid-agency/)

**Takaful**

1. [Takaful](https://islamicopenfinance.com/glossary/takaful/)
2. [Tabarru](https://islamicopenfinance.com/glossary/tabarru/)
3. [Participants' risk fund](https://islamicopenfinance.com/glossary/participants-risk-fund/)
4. [Participants' investment fund](https://islamicopenfinance.com/glossary/participants-investment-fund/)
5. [Shareholders' fund (takaful)](https://islamicopenfinance.com/glossary/shareholders-fund/)
6. [Takaful operator](https://islamicopenfinance.com/glossary/takaful-operator/)
7. [Wakalah model (takaful)](https://islamicopenfinance.com/glossary/wakalah-model/)
8. [Takaful participant](https://islamicopenfinance.com/glossary/takaful-participant/)

[All 221 terms](https://islamicopenfinance.com/glossary/)