Professional Documents
Culture Documents
Takaful Companies and Products in Malaysia
Takaful Companies and Products in Malaysia
Malaysia
Overview
Insurance
Takaful
Characteristics of Takaful
Need of Takaful
Products of Takaful
Models of Takaful
Suggested Measures
Conclusion
INSURANCE
Islamic Insurance
Conventional
INSURANCE
Demand
Economic growth
Increase in GDP per capita
Youthful demography
Increasing awareness of Takaful
Greater desire for Sharia
compliant offerings
Increase in asset based, Sharia
compliant financing
Compulsory protection
Licensing and increased competition
Better regulation
Greater role for private sector participation
Increased market-led initiatives
Facilitation
Fragmented landscape
Undercapitalised
Limited reTakaful capacity
Problematic asset
management
Local solution offerings
Local distribution channels
What is Takaful?
Thakaful is
Social scheme
Arabic word
Common good
Contributions
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Background
Takaful has been practiced in various forms for over 1400 years.
Takaful originated within the ancient Arab tribes as a pooled liability that
obliged those who committed offences against members of a different tribe to
pay compensation to the victims or their heirs which is called Diyyah .
This principle later extended to many walks of life, including sea trade, in
which participants contributed to a fund to cover anyone in a group who
suffered mishaps on sea voyages.
Takaful Pioneers
Takaful started some 30 years ago in the Middle East with the launching
of two companies in 1979:
The Islamic Arab Insurance Co. (IAIC) in the UAE and
The Islamic Insurance Co. of Sudan
Other markets such as the Sudan and Iran have Islamic regulatory
environments and became naturally Takaful markets.
Takaful Today
From a handful of operators two decades ago
the Takaful movement has blossomed into a
fast growing phenomenon in many Muslim
countries with very promising prospects in
other countries with a large Muslim
community.
GHARAR-Uncertanity
Gharar is forbidden in Islam because it is
not showing the full knowledge , disclosure
and transparency.
Gharar describe RISK..
Maiser-Gambling
Maisir resembled with Risk taking whereby insured get a huge amount
without any equivalent input.
Insurance include Maisir where insured makes a bet on the happening of
loss and insurer also do it.
Riba-Interest:
Allah has permitted trading and forbidden riba (Al
Baqarah 2 : 275).
Every profit must be based on liability and risk
otherwise it is Riba according to Islam.
Conventional insurance companies normally
place the insurer fund in interest bearing instruments like loans and bonds.
Investment Of Funds
Insurance companies invest in such type of assets that are totally prohibited in Islam such as
alcohol, gambeling, bonds etc. while the Takaful companies invest in interest free funds that
are halal-o-haram.
Nature of Contract:
In Takaful every policyholder has the right to know .???
How their money is used?
How the surrender value is calculated?
& the Takaful policyholders must be careful that the funds are used for halal
purposes.
Insurance contract based on interest.
Profit Distribution
In Takaful every policy holder has the right to know about the distribution
of profit among partners but in conventional insurance there is no hard
and fast rule about that, its totally depend upon management of company
FIRE TAKAFUL.
MOTOR TAKAFUL.
Introducing the comprehensive Personal Accident Takaful plan that allows you to enjoy the
magnificent feature of an additional 15% No Claim Rebate* from as low as RM0.16 per
day.
1. Enjoy Protection + 15% No Claim Rebate* or cash back.
2. Comprehensive protection at an affordable contribution rate, with 24 hours worldwide
coverage.
3. New coverage benefits, e.g. Snatch Injury, Ambulance Fees, Repatriation Expenses &
Purchase of Orthopaedic Equipment.
4. Simple application process with no medical examination required.
5. Wide Personal Accident coverage including Riot, Strike, Civil Commotion and
Hijacking.
.Rebate is payable if no claim during the period of coverage and is dependent on the
Companys performance.
FIRE TAKAFUL
Covering the lost and damage due to fire, lightning or domestic gas explosion, one will never have
to worry should the worst is to happen. Our Fire Takaful Plan will compensate your building, and
household content to ensure a complete coverage for your assets.
If that is not good enough for you, under this plan, we also offer additional coverage for losses
caused by :
1.
2.
explosion.
3.
impact damage.
4.
5.
6.
flood.
7.
aircraft damage.
8.
windstorm.
MOTOR TAKAFUL
For more extensive coverage, you might want to consider our COMPREHENSIVE type of cover.
Not only you will get everything that we offer in the THIRD PARTY type of cover, you will also
get indemnity for the loss or damage to your vehicle or its spare parts arising out of the following
events:
1.
2.
3.
4.
impact damage caused by falling objects provided not resulted from convulsion of nature.
5.
6.
7.
malicious act.
8.
while in transit.
Cont..
You can also apply for additional coverage which include :
1. windscreen
2. accessories
3. additional authorized driver
4. MPA (Motorist Personal Accident)
A step to heighten the efficiency of service to our participants, the
Tele Bantuan programed provides FREE TOWING SERVICE from the
point of accident to the nearest Takaful Malaysia panel workshop, 24
hours daily, anywhere in Malaysia
Covers individual for any incident happened upon death or permanent disability.
2.
3.
4.
CORPORATE/ORGANIZATION
TAKAFUL mySME
The Takaful mySME plan offers your organization more than just comprehensive protection but peace
of mind whilst you focus to grow your business. With Takaful mySME, you can now enjoy the best
of savings while simultaneously, increase business productivity and gain better cash flow
management.
Protection + 15% No Claim Rebate
1. Enjoy Protection + 15% No Claim Rebate or cash back (i.e. if no claims incurred during the
coverage period and is dependent on the companys performance).
2. Safeguard your business with the protection coverage that you truly need with the best rates in
town.
3. Experience a tailor made plan that addresses your business needs or sector and enjoy great
savings to elevate your business to the next level, i.e. heightened productivity and improved cash
flow.
4. Main Sectors
*Light Manufacturing
*Retail
*Food & Beverages
*Office & Services
BURGLARY TAKAFUL
A plan that provides cover against loss of or damage to the subject matter due to
theft whilst contained in the business or trade premises. This plan will also cover the
damage to your premises due to forcible entry or exit accompanied the event of theft.
However, you as the business owner should already have participated in our Fire
Takaful Plan before applying for this plan.
In the normal course of business transaction, you as an employer invariably has to entrust
money, securities, goods etc. to your employee or delegate monetary responsability to the
employee. In the event that employee is dishonest, you would most certainly suffer financial
loss. To protect this from happening, this is the plan for you. Minimum takaful contribution is
RM100.
This plan is definitely for you if you are an employer with foreign workers working under your
administration. Under the plan, foreign workers will be financially compensated in the events
of accident resulting in death or bodily injury.
In addition, the plan also provides coverage for Repatriation Expenses and Personal Accidents
outside working hours.
GROUP PERSONAL ACCIDENT TAKAFUL
Derived from our PERSONAL ACCIDENT , we have come out with a product, GROUP
PERSONAL ACCIDENT TAKAFUL , to cater for the different needs and demands of the market.
This plan compensates a group of individuals including yourself should you suffer bodily injury
caused by violent, accidental, external and visible means. If the injury results in death or
disablement then we will compensate according to the Table of Benefits as outlined in the
certificate, This plan is suitable for business or social organization and even for college students.
MONEY TAKAFUL
Suitable for business owner running high cash transaction, this plan covers against loss of money
whilst in transit and also money kept in premises. In the event of the money is lost, destroyed or
damaged as a result of theft, Takaful Malaysia will indemnify you in respect of such loss,
destruction or damage.
A plan designed to suit lawyers, architects, engineers, surveyors in accountants etc. for
coverage against liability caused by professional malpractice.
This plan is designed to protect you as the owner of your business against your legal liability to
pay compensation for accidental bodily injury to or accidental damage to the property of the
public caused by or through your negligence or the negligence of your employees. The liability
mentioned also includes legal charges and expenses.
I left some empty slides to use I expect that you can find products for one
company and example and the elaborate
TAKAFUL MODELS
There are three main different Takaful Models use today.
Takaful
Models
Mudharabah
Wakalah
Wakala -waqf
model
Mudaraba Model
THE SURPLUS IS SHARED
BETWEEN THE
PARTICIPANTS WITH A
TAKAFUL OPERATOR. THE
SHARING OF SUCH PROFIT
(SURPLUS) MAY BE IN A
RATIO 5:5 , 6:4 ETC. AS
MUTUALLY AGREED
BETWEEN THE
CONTRACTING PARTIES.
GENERALLY, THESE RISK
SHARING ARRANGEMENTS
ALLOW THE TAKAFUL
OPERATOR TO SHARE IN
THE UNDERWRITING
RESULTS FROM
OPERATIONS AS WELL AS
THE FAVOURABLE
PERFORMANCE RETURNS
ON INVESTED PREMIUMS.
Wakala Model
Issues
&
challenges
faced by
Takaful
1. Development Of
Human Resource
TAKAFUL IS OBSTACLE BY LESS HUMAN
RESOURCES.
LACK OF TALENTED, SKILLED AND
EXPERIENCED PEOPLE.
IT IS GOOD TO TEACH PEOPLE TAKAFUL
CONCEPT.
2. Lack of
Awareness
ISLAMIC
3. Regulatory Framework
OFTEN,
OF TAKAFUL IS BEING
PRACTICED BY SPECIFIC REGION.
4. Cooperate Governance
QUITE
LACK OF
APPROPRIATE
INVESTMENT VEHICLES,
ESPECIALLY WITH THE
LONG TERM DURATION.
THE
LIMITED RANGE OF
SHARIAH COMPLIANT
ASSET COULD BE THE
RESULT OF ASSET RISK.
6. Distribution channel
MICRO
LIFE
INSURANCE
7. Lack of standardization
KIND
OF MODEL OF TAKAFUL
EVERY
TERMS
Conclusion
Group Members
Mohammad AL-shuaibi
Ibrahim Siam
Tia Latha
Valarmathi Subramaniam
815350
816839
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