Takaful is for everyone
What is takaful and how does it work?
Takaful has always been practiced in one form or another throughout the history of Islam. The word takaful is derived from the Arabic verb Kafala, which means to take care of one's needs.
When you participate in a takaful plan, you take up a takaful certificate. This essentially means you pool some of your money with that of others, and it’s managed on your behalf by a takaful operator. Then, should you suffer a loss, as long as it’s covered in your plan, you’ll receive a claims payment (a takaful benefit) from the fund – known as a Tabarru fund. Think of it as a co-operative, based on the Islamic principles of solidarity, risk sharing and brotherhood. Like insurance, it means losses are divided and liabilities are spread.
Giving you the confidence you need
All takaful is regulated through the Islamic Financial Service Act 2013 and supervised by the Bank Negara Malaysia. Just like conventional insurance policy holders, takaful certificate owners are also protected under the Takaful & Insurance Benefits Protection System (TIPS). This makes it a secure, safe and reliable protection plan.
Why is takaful so popular?
Reliable
All products are regulated and underpinned by a robust framework of governance.
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Balanced
Takaful means shared responsibility, shared risks, shared guarantee and mutual undertaking.
Trusted
When you enter into a plan, you’ll always have transparency of where your money goes.
Who is takaful for?
Although takaful is an Islamic finance product, it’s not a religious product and is open to everyone regardless of race, religion, background or ethnicity. That’s because everyone can benefit from takaful.
How is takaful different from conventional insurance?
Unlike conventional insurance, where risk is transferred from the insured person to the insurer, with takaful there’s mutual risk that’s shared among the participants. That’s because it’s based upon the Islamic principles of brotherhood and mutuality, where each participant makes a donation to a takaful fund.
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