Products – Takaful
Takaful
Takaful is based on the principles of "Ta'awun" (mutual cooperation) and "Tabaru'a" (Donation) whereby a group of people (Takaful participants or policyholders) agree between themselves to share the risk of a potential loss to any of them by making a donation, of all or part of their contribution, which is used to compensate the loss suffered by any participant of the Takaful scheme.
Car/home Takaful
(Check terms and conditions with your takaful provider)
Customer (Participant)
- Chooses cover (third party, comprehensive, fire, flood, content…etc.)
- Provides documents required (registration, licence, titles, records...etc.)
- Signs a Takaful contract
- Pays contribution (donation) to a Takaful fund
- Becomes Fund participant (NOT a policy holder)
- Receives discount on contribution or a portion of the profits of the Fund if no claims are made
- Receives compensation from the Fund on occurrence of a covered event according to contract
Takaful company (Fund manager)
- Pools all the contributions and creates a Takaful Fund
- Charges Wakala fees to cover admin and operational costs
- Manages the Fund and invests it in ways compliant with the principles of Shariah
- Settles claims from Fund
- Carries out annual valuation of Fund and distributes surplus