Takaful

In islam
Intro
• Takaful is derived from Arabic verb kafala, which means to guarantee,
to help, to take care on those in needs
• Takaful is based pm principle of Ta’awun (mutual assistance) and
Tabarru (voluntary contribution)
Intro Cont.…
Takaful is an Islamic insurance. It is based on risk sharing between
participants. Who pay contributions to a common fund and guarantee
themselves against any loss or damage as per the takaful agreement.
OR
Takaful is a type of Islamic insurance wherein members
contribute money into a pool system to guarantee each
other. Takaful-branded insurance is based on sharia or Islamic
religious law and covers health, life, and general insurance
needs. Any claims made by participants are paid out of
the takaful fund.
Basic elements of Takaful
• Mutuality and cooperation
• Payments are made with the intention of Tabarru (contribution)
• Eliminates the elements of Gharrar, Maisir and Riba
• Joint Guarantee / Indemnity amongst participants – shared
responsibility
• Investments as per Shariah.
Main Drivers of Takaful
• Brotherhood (mutual assistance)
• Charity (Tabarru or contribution)
• Mutual Guarantee
• Community well-being as opposed to profit maximization.
TAKAFUL VS CONVENTIONALL
INSURANCE
Takaful Pakistan limited
• The company has its branches in Lahore and Peshawar, and has its
head office in Karachi and its aim is to provide the insurance plans
based on riba free, gharaar free and shariah compliant plans
Products
• Its products are divided into two categories
• Personal line
• corporate
Products
• Motor Comprehensive Takaful Policy
Theft of and/or accidental damage to motor vehicles have become all too frequent in our
daily lives. With the increasing number of accidents on roads and the surging costs of
repairs, comprehensive motor coverage is highly recommended. Takaful Pakistan provides
a complete solution for all your motor related concerns, on or off the road.
And there are different policies for private vehicle and commercial vehicle
Home Takaful
• specifically designed to cover home and contents (including jewellery & cash)
against the risk of fire, earthquake, explosion, lightning, thunderbolt, flood,
typhoon, burglary, bursting of pipes, aircraft damage, damage to mirrors etc.
• To safeguard your properties against various natural disasters and other perils, we offer add-on covers as follows:
•  Explosion
•  Riots and Strikes Damage
•  Malicious Damage
•  Impact by vehicles
•  Aircraft or Articles dropped there from
•  Earthquake, Fire & Shock
•  Atmospheric Disturbances
•  Burglary and Housebreaking
Personal Accident
• This is a 24 hours worldwide coverage providing compensation in case of death or loss of
limb or bodily injury to the covered person resulting in temporary or permanent
disablement, partial disablement or total disablement arising out of an accident.