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Takaful provides protection based on Shariah principles. By contributing a sum of money to a common
takaful fund in the form of contribution ('Tabarru'), you will undertake a contract (aqad) to become one
of the participants by agreeing to mutually help each other, should any of the participants suffer a
defined loss.
Both insurance and takaful have similar basic principles. For instance, the insured must have a legitimate
financial interest in the risk you are insuring, meaning you must suffer a financial loss when the insured
event occurs. Your insurance or takaful contract is a contract of utmost good faith (trust). Thus, you as
the certificate owner need to disclose all material information required. If any of the relevant material
facts are not disclosed, the certificate may be invalid and you will not be protected against any loss or
damage.
All investments managed by the takaful operator are made in accordance to the Shariah law. These funds
are managed by the takaful operator on behalf of the participants, which will be beneficial to the
participants.
On top of that, unlike conventional insurance, the participants retain an ownership interest in the takaful
fund. Contributions from the participants are later invested into a ‘halal’ or Shariah compliant funds to
derive investment income. In the event when the fund generates a surplus, it is then shared among the
participants (and, in some cases with the takaful operator). This creates a ‘win-win’ situation to all
participants.
The takaful operator will also have a Shariah’s Advisory Board who will monitor the activities of the
operations in order to ensure that it’s Shariah-compliant. This involves consideration of all aspects of the
operations. Takaful and conventional insurance companies share the same objective which is to provide
protection to you, your loved ones and your valuable possessions.
3. What do you mean by Mudharabah and how does one receive such benefits?
Currently, Takaful Malaysia is the FIRST and ONLY Takaful Company in the country that offers an
additional 15% no claims rebate or Mudharabah payment to all its participants in the General and
selected Family Takaful Products, i.e. the participants will receive their rebate should there be no claims
incurred during the coverage period. ‘Mudharabah’ means ‘profit or surplus’ sharing.
10. Is there any time limit for me to notify my claims to the insurance company?
It is advisable that you should notify the Company immediately.
11. When can I receive my claim payment after submission of my claim forms and relevant documents?
Claim payments are payable within 14 workings days upon receiving the completed supporting
documents from you.
16. Does the nominee/beneficiary have to pay any tax on this coverage?
The proceeds amount is normally tax-free. For more information, please consult your tax advisor.