Takaful

1,437 views

Published on

Published in: Economy & Finance, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,437
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Takaful

  1. 1. TAKAFULRehan Uddin KhanID:4552
  2. 2. It is an Arabic word which means “Guaranteeing each other”.Takaful comes from the Arabic root-word „kafala‟TA‟AWUN (mutual assistance) and TABARRU‟ (Gift, Giveaway, donation)Operationally, takaful refers to participants mutuallycontributing to a common fund with the purpose of havingmutual indemnity in the case of peril or loss.
  3. 3. Differences between Takaful & InsuranceWhat is Insurance?A tool for Risk Mitigation and Financial ProtectionA tool to enable people to save (Life Insurance)Key differences between Takaful and Insurance are:Risk Sharing Vs. Risk TransferWakeel Vs. GuarantorAmeen Vs. OwnerDifferent type of Contract
  4. 4. Pakistan – Overall Population: 6th amongst global nations. 166 m. Population in 2015: Still 6th . 193 m. Urbanization: Presently at 33% Urbanization by 2015: 39% GDP Per Capita: $753
  5. 5. Pakistan – Insurance Market Penetration of Insurance  Pakistan: 0.7% of GDP  India: more than 3% of GDP  Iran: approx. 1% of GDP  Family & General Companies  Few Innovative Products.  Very recent change in this area
  6. 6.  Resistance to Insurance, and its benefits, due to different reasons. Non-Shariah compliant elements. Government regulations untested. Human resources for the sector. Education and Awareness. Marketing & Sales issues. Operational Issues.
  7. 7.  Strong growth in the Islamic financial sector provides Takaful with a natural market. Massive untapped market in Pakistan for risk mitigation tools. Lack of govt. social safety net. Negligible provision of reliable health care by the govt. Ethical and Shariah compliant model for risk mitigation and financial protection. Ethical and Shariah compliant model for risk mitigation and financial protection
  8. 8. Mudaraba Model Wakala Model Wakala -Waqf ModelBasic Principle regarding TakafulPolicyholders cooperate among themselves for their common good.Every policyholder pays his subscription to help those who need assistance.Losses are divided and liabilities spread according to the community pooling system.Uncertainty is eliminated concerning subscription and compensation.It does not derive advantage at the cost of others.
  9. 9. PreambleDurationCancellation ClauseTakaful operators feeInvestment management shareSurplus distribution
  10. 10. Takaful is not only here to stay; it‟s going to GROW!It‟s ethical and Shariah compliant nature allows Takafulto overcome the inherent problems with Insurance.Pakistani market has challenges but also has a lot ofopportunities. There are a lot of opportunities forTakaful operators to make healthy profits in Pakistan.Although Insurance coverage is not the norm inPakistan we need to work to make Takaful somethingeverybody uses

×