Académique Documents
Professionnel Documents
Culture Documents
Malaysia (General)
Overview
Insurance
Takaful
Characteristics of Takaful
Need of Takaful
Products of Takaful
Models of Takaful
Suggested Measures
Conclusion
INSURANCE
Islamic Insurance
Conventional
INSURANCE
Takaful
What is Takaful?
Supply
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
Takaful is
Social scheme
Arabic word
Common good
Contributions
Uncertainty removes
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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.
The Islamic Insurance Co. of Sudan
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.
Characteristics of Takaful
Restricted investments
Need of Takaful.
Why Conventional Insurance is
unacceptable in Islam???
Scholars view the insurance contract as an exchange
contract money is being exchanged for money over time.
Insurance is a buy and sell agreement.
Elements of:
Uncertainty Gharrar
Gambling Maisir
Interest Riba
Profit distribution
Investment of funds
Nature of capital
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
Risk transfer
Risk sharing
Gharar
Gharar exist
Maisir
Investment
Interest based
Interest free
Surplus
Surplus in hands of
shareholders
Distribution according
to proportions
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
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 responsibility 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.
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.
MAA Takaful
MAA Takaful is a result of a strategic joint venture between MAA Group Berhad (MAAG) [Formerly
known as MAA Holdings Berhad] and Solidarity Company BSC (C) of Bahrain, one of the leading
companies in the Arab world.
On 21 February 2006, a Joint Venture (JV) Agreement was signed with Solidarity, to form a JV company
called MAA Takaful to carry on the Takaful business.
On 3 March 2006, Bank Negara Malaysia granted approval for a new Takaful license for the joint venture
of MAAG and Solidarity. On 2 May 2006, MAA Takaful was incorporated with a paid up capital of
RM100 million and licensed on 1 July 2007 as a composite Takaful Operator. Today, MAA Takaful has an
agency force of over 10,000.
PRODUCTS
FAMILY
Takafulink
Takafulink Education
Takafulink Hajj
Takafulink Wanita
Takafulife Series
Takaful Term 80
SmartMedic 200
CancerCare
GENERAL
Property
Houseowner & Householder
Personal Accident
Motor
Burglary
Personal All Risks
Public Liability
Money
Marine Cargo
Plate Glass
Fidelity Guarantee
Equipment All Risk
Engineering
similarity
Both
Both
DIFFRENTATION
MAA Takaful Term Takaful, member can opt to cancel their certificate.
Members have to inform the Company of the intention to cancel the certificate.
Company need to send Memo to Takaful Operator to inform the intention of member to cancel the
certificate
Takaful Operator will refund members unearned portion of the members contribution
Death Benefit in the event of death of the participant within the term of the certificate, the Sum Covered
(SC) plus the balance in the participants Personal Risk Investment Account (PRIA) will be payable, in one
lump sum, to the Grantee.
TPD Benefit in the event of TPD of the participant within the term of the certificate, the SC plus the
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 FAVORABLE
PERFORMANCE RETURNS
ON INVESTED PREMIUMS.
Wakala Model
COOPERATIVE RISK
SHARING OCCURS AMONG
PARTICIPANTS WHERE A
TAKAFUL OPERATOR EARNS
A FEE FOR SERVICES (AS A
WAKEEL OR AGENT) AND
DOES NOT PARTICIPATE OR
SHARE IN ANY
UNDERWRITING RESULTS AS
THESE BELONG TO
PARTICIPANTS AS SURPLUS
OR DEFICIT. UNDER THE ALWAKALA MODEL, THE
OPERATOR MAY ALSO
CHARGE A FUND
MANAGEMENT FEE AND
PERFORMANCE INCENTIVE
FEE.
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h
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
IN DEVELOPING TAKAFUL.
IT
CUSTOMER .
MANY CONSUMERS ARE
IT
CONSUMER AWARENESS.
TO DEVELOP
3. Regulatory Framework
OFTEN,
THE
MODEL
REGION.
4. Cooperate Governance
QUITE
THERE
SHARIAH BOARD.
OF REFERENCE.
5. Shortage of Shariah-compliant
assets
THE
THE
6. Distribution channel
MICRO
LIFE
INSURANCE
7. Lack of standardization
TAKAFUL.
Suggested measures
MARKET
PENETRATION
TO
FURTHER
ENTRENCH
ITS
DEVELOPMENT
BANK
AND
FINANCIAL
INSTITUTIONS
AND
BUILDING
INTERNAL
OPERATIONS.
CONTROL
STRUCTURE
WITHIN
THE
TAKAFUL
Conclusion