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Products of Family Takaful Business
The family Takaful business products provide opportunities for long-term protection and
savings. The participants in this scheme contribute a sum of money to the fund managed by the
TO. The contributions are channelled to two separate accounts: Participants’ Special Account
(PSA) for contributions assigned as tabarru’ and Participants’ Account (PA) for contributions
designated as savings and investment. The funds from the PSA are committed for mutual help
to participants who have incurred losses from adversities such as death or permanent
disabilities. On the other hand, the TO invests the savings in the Participants’ Account (PA) and
the profit generated is shared between the participant and the TO based on a predetermined
ratio. Family Takaful protection is classified into two; Individual Family Takaful (individuals)
and Group Family Takaful (employees, clubs, associations and societies).
Included under the individual Family Takaful plan are education, investment-linked, annuity,
mortgage, health and riders. Participants receive financial benefits from the coverage of
adversities such as death or permanent disability. The benefits are also derived from the long-
term savings (investment) and investment profits that are distributed upon claim, maturity or
early surrender. The Family Takaful certificate provides Takaful coverage until death or
maturity. Takaful benefits are paid to the beneficiaries of the deceased upon his death. If the
participant survives until the maturity date, the benefits are paid to the participant
himself/herself.
For the group Family Takaful, the plans include group education, group medical, and retirement.
Under these plans, a minimumnumber of participants must qualify as a group. Financial benefits
due to death or permanent disability are the forms of protection the participants receive under
these plans.
Products of General Takaful Business
Property or asset is the core the subject matter of General Takaful. In order to protect the
properties of the participants against financial losses created by adversities, this Takaful
product provides Shari'ah -compliant riskmanagement through risk-sharing. The common types
of General Takaful products are motor Takaful, fire Takaful, miscellaneous accident Takaful,
liability Takaful, personal accident Takaful, fidelity guarantee Takaful, engineering Takaful and
aviation Takaful .
The motor Takaful provides coverage to participant’s vehicle against loss or damage due to
accidents, fire and theft; and/or third-party bodily injury or death and third-party property loss
or damage. All motor vehicles are required by the Road Transport Act 1987 to be insured before
they can be used on public roads. Third-party risks coverage is compulsory under the Road
Transport Act 1987, and it is an offence for any person to use or cause any other person to use
a motor vehicle without the necessary coverage.