Dawood Family Takaful Limited is a subsidiary of the First Dawood Group that offers Takaful (Islamic insurance) products in Pakistan. It has over 50 branches and small locations across the country. The document discusses the history and foundations of Takaful in Pakistan and globally. It also provides details on Dawood Family Takaful's products like Sukoon (retirement plan), Salamti (family protection plan), and Sahulat (investment and protection plan). The key aspects of Takaful like risk sharing, separate funds, and Shariah compliance are explained. Takaful accounting and the use of reinsurance are also covered.

2. Thanks to our Respected
Sir
Hammad Ahsan

3. Topic:
Group Members:
Mubashar Maqbool 32
Shazma Rauf 14
Waseem Baig 48
Muhammad Shan 44
Umair Aamir 36
Qadir Abbas 39
Waqas Akram 37
Dawood Family Takaful (LTD)

4. Table of content
 Foundations of Takaful in Pakistan
 Takaful Worldwide
 What DFTL is?
 Risk and Insurance
 Three Islamic Scholars approved by SECP
 Takaful Products
 Basic Elements of Takaful
 Mitigating Misconceptions about Takaful
 Differences between Takaful and Insurance
 Takaful Models
 Takaful Accounting
 Re-Takaful (Reinsurance)
 Dawood Takaful Products
 SWOT Analysis
 Recommendations

5. Foundations of Takaful in Pakistan
• 1949 - Declaration made in the Objectives Resolution adopted by the Constituent
Assembly of Pakistan “Sovereign state of Pakistan is established to enable
Muslims individually and collectively to order their lives in accordance with the
injunctions of the Holy Qur’an and Sunnah”.
• 1973 - The Constitution of Pakistan declares Pakistan as “Islamic Republic of
Pakistan and Islam as the official religion of the state”.
• 1985 - Objectives Resolution was made ‘substantive’ part of the constitution.
• 1983 to 1989 - The Council of Islamic Ideology held its sessions in order to
survey the Islamic Insurance System.
• 1992 - The Council of Islamic Ideology submitted its report on Islamic Insurance
System.
• 2000 - The Insurance Ordinance defines the term “Takaful” in Section 2 and
provides for establishment of Takaful companies in the country.
• Sept., 2005 - Takaful Rules notified

6. Takaful Worldwide
 The first ever Takaful company was established in 1979 - the Islamic Insurance
Company of Sudan.
 124 Takaful Companies in over 23 countries.
 Global Market Size
– 2004: US$ 1.4 billion
– 2014: US$ 9.72 billion
 Average growth rate (20.08 % for 2014 ) higher than conventional insurance
companies.
 Non – Muslims increasingly opting for Takaful products for commercial benefits.

7. What DFTL is?
1. Dawood Family Takaful Limited, a subsidiary part of First Dawood Group.
2. First Dawood Group already in the various businesses in Pakistan, with the name of
First Dawood Investment Bank, Dawood Mudarbah Bank, Dawlance Pakistan, Burj
Islamic Bank, Dawood Group of Companies, Nagina Group of Companies, Sarena
Group of Companies, Yamaha Motorcycle and many other sectors of Businesses in
Pakistan.
3. Other than Takaful Company, First Dawood Group are mainly do business in the
sectors, which includes Islamic Banking, Cotton Spinning, Textile, Garments,
Electronics, Motor Vehicles, Chemicals and many other sectors.
4. The first Company of Dawood family started in the year 1917, with the name of
Dawood Cotton Factory in Gujrat, India before partition.
5. An authentic group which are in businesses since last more than 9 decades in Sub
Continents.

8. Meaning of Takaful
• Takaful comes from the Arabic root-word….
• So it means mutual protection and joint guarantee.

9. Takaful Insurance
Mission
“To create solidarity, peace of mind and security by sharing
risks for mutual protection of assets and property against
damage or loss within the framework of Shariah”

10. Risk and Insurance
 Risk and uncertainty are fundamental facts of life.
 All human activities are subject to risk, which may lead to financial or
physical losses to him.
An arrangement by which a company or the state undertakes to
provide a guarantee of compensation for specified loss, damage, illness,
or death in return for payment of a specified premium.

11. Methods of Handling the Risk
Insurance Perspective
1. Risk Transfer
2. Risk Sharing

12. Takaful – Regulatory Framework
• Takaful Act – 1984 of Malaysia.
• Saudi Arabian Monetary Agency (SAMA)
Regulations of Saudi Arabia - 2004 .
• Bahrain Monetary Authority (BMA) Rules – 2005.
• Takaful Rules – 2005 of Pakistan.

14. 3 Islamic Scholars approved by SECP
1. Mufti Muneburahman
2. Syed Zaid Seraj
3. Syed Sabir Shah
 Annual 1.5% annual operation fee charged from customer profit
 In 2013 growth rate was 18%
 In 2014 growth rate was 20.08%
 52 branch
 50 small locations
 Maximum investment for 40 years
 Minimum investment for 10 years

15. Takaful Products
• General Takaful
Offers all kinds of non-life risk coverage's products like motor takaful,
marine takaful, fire takaful, home takaful, shop takaful, etc.
• Family Takaful
Offers life coverage and it has significant success in SE Asia. Malaysia 73%
net contributions and cut throat competition among market players in SE
Asia.
• Banca-Takaful
Offers tailored coverage for banks

16. Basic Elements of Takaful
Risk Sharing:
Risk is shared between participants and not bought or sold between them and
the Operator
Nature of Contract:
3 party contract involving Takaful Operator, Company, and the Participant No
direct relationship of Participant with Takaful Operator.
Investment Management:
All investments are done based on Shari’ah guidelines
Shari’ah Compliant:
Takaful is accepted by Shari’ah Scholars as a Halal risk mitigation tool
• Constitution of separate “Participants’ Takaful Fund”.
• Constitution of “Shariah Advisory Board.

17. How Islamic Principles Works

18. Differences between Takaful and Insurance
Issue Insurance Takaful
Organization
Principle
Profit for shareholders Mutual for participants
Basis Risk Transfer Co-operative risk sharing
Value Proposition Profits maximization Welfare and spiritual
satisfaction
Laws Secular regulations Shariah regulations
Ownership Shareholders Participants
Management status Company Management Operator
Form of Contract Contract of Sale Wakala or Mudarbah
Investments Interest based Interest-free
Surplus Shareholders’ account Participants’ account

19. Mitigating Misconceptions about Takaful

20. Takaful Models
1) Mudaraba Model:
1. It is an equity Partnership.
2. The Profit Sharing Model.
3. The sharing of such profit (surplus) may be in a ratio 5:5 , 6:4
etc. as mutually agreed between the contracting parties.
4. This is commonly used in Malaysia.

22. 2) Wakala Model
1. It is an agency Model.
2. Cooperative risk sharing occurs among participants where a takaful
operator earns a fee for services (as a Wakeel or Agent) and does not
participate or a share in any underwriting (Profit) results as these
belong to participants as surplus or deficit.
3. Under the Wakala model the operator may also charge a fund
management fee and performance incentive fee.
4. This model is used in Middle East region.

24. Takaful Accounting
 Two separate accounts are created:
1. Participants’Takaful Fund.
2. Shareholders’ Fund.
 Separate Accounts are created for:
1. Operational activities.
2. Investment activities.
 Dual audit of all transactions:
1. Financial Auditors.
2. Shariah Auditors. (criteria: Accounting & Auditing
Organization of Islamic Financial Institutions, AAOIFI).

25. Re-Takaful (Reinsurance)
 Currently few ReTakaful companies worldwide offering a relatively small
capacity: – Sudan (1979) National Reinsurance.
– Sudan (1983) Sheikhan Takaful Company.
– Bahamas (1983) Saudi Islamic Takaful and ReTakaful Company.
– Bahrain/Saudi Arabia (1985) Islamic Insurance and Reinsurance Company.
– Tunisia (1985) B.E.S.T. Re
– Malaysia (1997) ASEAN ReTakaful International. More than
– Dubai (2005) TakafulRe by ARIG. 18
– Lloyds of London to form a ReTakaful Syndicate. Retakafuls
– SwissRe to form a separate ReTakaful Pool Worldwide
– MunichRe to form a separate ReTakaful Pool

26. Dawood Takaful Products
 Sukoon
 Salamti
 Samar
 Sahulat
 Salary saving plan
 Single contribution

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 Plan your retirement days with Sukoon, a plan that gives you the
benefits of financial protection to address your future requirements and
fulfills your desire to grow savings in accordance with Shariah
principles.
 Sukoon has a unique competitive edge in terms of contribution paying
term for a period of 10 or 15 years and get the coverage till maturity at
the age of 60 or 65.
 Sukoon provides endowment benefit at retirement, or in case of earlier
Death pays such benefits to your dependants.
1.SUKOON

28. 2. SALAMTI
 Change is the essence of Life. Some changes make your life colorful but
sometimes a change can be quite challenging.
 Now you can prepare yourself for change by participating in our Salamti
Takaful plan which provides you with both Financial protection & savings
growth in accordance with Shariah.
 You can choose any term of payment from 10 to 30 years up to maximum
maturity age of 65 years. Salamti gives you peace of mind because your
 beloved ones are secured financially for the future.

29.  Samar is a unique Shariah Compliant plan which accumulates funds
for your child’s Education / Marriage and at the same time provides
your family the protection in case of an unforeseen event.
 It has 3 inbuilt features of Family Income benefit, Plan continuation
benefit & Accidental death benefit.
3. SAMAR

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 An excellent combination of Takaful Protection and Investment Return to
ensure a secure future for you and your family’s various needs.
 Our Sahulat Plan is designed to help you plan your future financial needs.
 Sahulat is a Shariah compliant investment and financial protection vehicle
which can secure your future financial well being.
4. SAHULAT

31. (A SHARIAH ARRANGMENT TO PROVIDE)
 You may decide your regular Contributions subject to minimum amount.
 These will be used to purchase investment Units in our managed SHARIA
funds of your choice; Balanced Fund, or Income Fund.
 You will have access to your funds including any profits which can be
redeemed either through partial withdrawal, surrender, in the event of
claim, or survival at maturity.
 The fund value may fluctuate based on underlying performance and not
guaranteed.
5. SALARY SAVING

32. 6. SINGLE CONTRIBUTION
SINGLE CONTRIBUTION (Investment Linked Takaful Plan)
 You may decide your minimum contributions subject to minimum
amount.
 These will be used to purchase Investment Unit in Our SHARIAH
managed funds of your choice ; Income Fund , Balanced Fund or
Aggressive Fund.
 The fund value may fluctuate based upon underlying asset
performance. ear
 FIB will give 50000 wazifa to age of sixteen year and FIB will give
100000 for marriage women.

33. PRODUCT FEATURES
 Surplus is Distributed to participants.
 Enhance availability of savings at age 60,65,70 & 75 years.
 Participants can withdraw money from their investment account (PIA)
at any time before maturity after payment of 3rd year of contribution.
 Pay for a period of 10 ,15,or 20 years and get takaful coverage till
maturity.
 Choose your own risk-return combination based on your
circumstances.
 Annual, semi-annual, quarterly or monthly payment period.
 Enhance your financial protection by choosing covers:
e.g. Accidental death and disablement, critical illness, family
protection, family income and funeral expense etc.

34. 34
 Growth in the number of customers
– 2013 5700 customers in the current year
– 2014 6000 customers in the current year
Total no of customer in all over the Pakistan is 35000
• Re-takaful from the Dubai based company
• For before maturity death claims
• NPL is different from to branch but the branch manager do
not know how many NPL
• Due to the government restriction Dawood takaful invest 20
% in the government institutions and 80% in their own
institutions.

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 Its investment sector are own
 Dawlance, Dawood Burj, Dawood textile-mills , Engro foods,
Numl university, China electricity (Husain Dawood)
 Takaful is an Islamic state.
 Shariah board certificate fatwa
 No mark up in return
 When a person died in Lahore and its insurance from Dawood
takaful in Multan its family can receive cash from the branch
takaful in Lahore.

37. 37
 Jubilee made in 1994
 Dawood takaful family made in 2008
 Time tenure is the Dawood family
takaful is weakness
37

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 Client
 The client is understanding the concept of haram and hilal.
 Growth rate high
 No mark up in return
 You can pay your money in installment
 No bound to pay payment in full.
 WORKS EMPLOYEES
 Flexible target
 Growth target
 City branches
 Salaries
 Bonuses

39.  NO threats
 If competitor company people who spread rumours
in the market about takaful concept that is threat
for company.

40. • There is also a problem of work overload for the
employees and it should be control properly so that the
employees are motivated.
• IT draw backs should be improved.
• Advertising only on Pakistan TV and Radio Pakistan
but now it should properly advertise and Communicate
to public about the products provided by it, so that
more customers will be attracted.