This paper is intended to assist actuaries who want to do professional service to takaful (sharia insurance) based on International Actuarial Note No. 3, Classification of Contract Under International Financial Report Standards [2005].

Some contracts are often used in Takaful are:

a)      Tabarru Contract

b)      Tijarah Contract

c)       Wakalah Contract

d)      Mudharabah Contract

e)      Musyarakah Contract

f)       Wadi’ah Contract

g)      Amanah Contract

h)      Hibrid Contract

i)        Al-qardh.

This paper describes the definition of takaful contract and relevant information from each of takaful contract. Helping actuaries to determine the classification of sharia contract based IAN 3. This paper also discusses the technical aspects related to the calculation of premium reserve for insurance contracts, including conditions in the event that insufficient liability on tabarru fund.