Takaful Pakistan

ANUM ELAHI (10528)SAYEM HUSSAIN (9919)

MAAZ BIN SHAHOOD (10308)

Takaful comes from the Arabic root‐word ‘kafala’‐guarantee

Takaful is not only a tool to mitigate loss or to make halal profits. It is an ideology which promotes◦ Solidarity and joint guarantee ◦ Self reliance and self sustainability for community well being◦Assistance to those that need it◦Community pooling system

Takaful-A product and an Ideology

Origins in the First Constitution of Madina. It evolved and continued in one form or the other

throughout the Abbasid period and even later during the Ottoman empire.

Serious efforts were made in modern times, in 1970s to come up with an Islamic alternative to the conventional insurance.

The first Takaful company was set up in Sudan in 1979, almost simultaneously followed by another one set up in Bahrain.

History of Takaful

A tool for Risk Mitigation and Financial Protection A tool to enable people to save (Life Insurance)

◦ Penetration of Insurance Pakistan: 0.7% of GDP◦ India: more than 3% of GDP◦ Iran: approx. 1% of GDP

What is Conventional Insurance??

Key differences between Takaful and Conventional Insurance are:◦Risk Sharing Vs. Risk Transfer◦Wakeel Vs. Guarantor◦Ameen Vs. Owner◦Different type of Contract

Takaful vs. Conventional Insurance

Takaful Pakistan Limited was incorporated in June, 2006 with its registered head-office in Karachi. With an authorized capital of Rs. 300 million, all fully paid-up, the Company is sponsored by reputable financial institutions both local and foreign.

Takaful Pakistan Introduction

To spread Takaful benefits beyond borders, beyond Time!

VISION

To deliver Takaful as a viable alternative to conventional insurance.

To become the ‘top-of-the-mind’ Takaful brand for our Participants in terms of competitiveness, service standards and business ethics

To give value for money to our shareholders and make Takaful Pakistan their prized asset.

To become an ideal organization for our employees that encourages them to achieve self-actualization and growth.

To contribute positively and proactively for the welfare of our society at large as well as for the preservation of our environment.

MISSION

To be a role model for the contemporary insurance industry and eventually bring it in conformity with the Shariah compliant Takaful mode of insurance.

AMBITION

The Company’s Shariah board comprises of the following:◦Mufti Mohammad Mohibul Haq (Member & Nominee of

Justice (R) Muhammad Taqi Usmani)◦Mufti Dr. Khalil Ahmad Aazami (Member)◦Mufti Imtiaz Alam (Member)

Shariah Board:

Mr. Syed Tariq Husain (Chairman) Mr. Syed Azhar A. Jaffri Mr. Syed Khawaja Maaz Khairuddin Mr. Muhammad Adrees Mr. Tahir Naz Siddiqui Mr. Ahmed Zafar Mr. Shafqaat Ahmed

Board of Directors

Mufti Mohammad Mohibul Haq (Member) Mufti Dr. Khalil Ahmad Aazami (Member) Mufti Imtiaz Alam (Member)

Shariah Advisor

Individual◦Motors

Motorcycle Third Party Takaful Motorcycle Comprehensive Takaful Private Car Comprehensive Takaful

◦ Fire Householder's Comprehensive Takaful

Products

◦Marine Marine Cargo Policy

◦Miscellaneous Burglary Takaful Personal Accident Takaful Coverage

Corporate◦ Property:

Fire and Allied perils Household comprehensive Shop owners Fire consequential loss

◦Motor/ Accident: Motor Miscellaneous and general Takaful

Products

◦Marine: Marine Cargo Policy Marine Hull Policy Marine Advance consequential loss policy

◦Health: General Health Policy

Takaful is not only here to stay; it’s going to GROW! It’s ethical and Shariah compliant nature allows

Takaful to overcome the inherent problems with Conventional Insurance

Although Insurance coverage is not the norm in Pakistan we need to work to make Takaful something everybody uses

Takaful is NOT a type of Insurance, rather it is an ALTERNATIVE to Insurance. This clarity is VERY important to be able to truly understand what Takaful is all about

Conclusion