This document provides an overview of basic concepts in underwriting for individual family takaful schemes. It discusses several key points, including the main causes of death, the concepts of sum cover, contribution, insurable interest, and others. It then discusses how to calculate items like sum cover, accumulated tabarru fund, and previous certificates. The document outlines guidelines for new business applications, including how to properly fill out proposal forms. It also discusses various aspects of underwriting like non-medical, medical, residence, and financial underwriting. Specific considerations for underwriting female lives are presented.

3. Presented by:
Dr. Bakht Jamal Shaikh-
Chief Operating Officer.

4. Dawood Family Takaful
Limited
Basic Concepts of
Underwriting
Individual Family Takaful Scheme

5. Overview and Purpose
•Unity of Purpose
•Clarity of Direction
•Performance Evaluation
•To Provide Clear Guidance to Consultant
•Good Understanding of
Operation Procedures
•Clear Job Assignment
•To Process Promptly
•To Avoid Unnecessary Delays

6. BASIC CONCEPTS
Why Underwriting?

7. BASIC CONCEPTS
CAUSE OF DEATH
1. Old Age

8. BASIC CONCEPTS
CAUSE OF DEATH
2. Disease

9. BASIC CONCEPTS
CAUSE OF DEATH
3. Accidents & Disasters etc.

10. BASIC CONCEPTS
CAUSE OF DEATH
4. Murder

11. BASIC CONCEPTS
CAUSE OF DEATH
5. Suicide

12. BASIC CONCEPTS
CAUSE OF DEATH
6. War, Terrorism & Riot etc

13. BASIC CONCEPTS
CAUSE OF DEATH
7. Occupation

14. BASIC CONCEPTS
DEATH IS CERTAIN
DATE IS UNCERTAIN

15. BASIC CONCEPTS
A. SUM COVER
B. CONTRIBUTION
 Payable on Uncertain Event
 death
 disability
 disease

16. BASIC CONCEPTS
C. INSURABLE INTEREST
D. PROSPER/PAYER OTHER THAN
PARTICIPANT

17. BASIC CONCEPTS
E. AQAD
F. TAKAFUL CONULTANT DECLARATION

18. How to calculate?
Current Proposal
I. Sum Cover
II. ATB
III. FEB
IV. FIB % term PV(75%)
V. Previous Certificate TSAR issued within
3 yrs
VI. Total
Total Sum At Risk (TSAR)

19. New Business
• Proposal Form
 Legal Evidence of the
Contract
 How to Complete a Proposal
Form
 Proposal form should be filled with black quality pointer
 In CAPITAL LETTERS
 In one writing only.
 No Eraser, No Whito, No Blanco, No Overwriting , No cutting

20. New Business•
Proposal Form
 Legal Evidence of the
Contract
 How to Complete a Proposal
Form

21. New Business•
Proposal Form
 Legal Evidence of the
Contract
 How to Complete a Proposal
Form

23. Under-writing
General Guide Lines•
Purpose & Importance of Under-writing
Non Medical Under-writing
Medical Under-writing
Residence Under-writing
Financial Under-writing
Females Under-writing

24. NON MEDICAL
•Total Sum Cover comes within non
medical limit
•The application is free from any medical
problem

25. MEDICAL
•Total Sum Cover comes within
medical limit
•Medical problem (s) is declared
•Standard medical is valid for 6
months
•Medical is to be conducted by
company appointed physician

26. MEDICAL
•The company reserve the right for
any additional report ,
supplementary test or
examination.

27. RESIDENCE
UNDERWRITING
Residents Risk
Afghanistan
Iraq
Kashmir
Tribal Areas etc
Foreigner Risk

28. FINANCIAL UNDERWRITING
 Economic Value of Life
 Contribution Paying Capacity
 Know Your Client (KYC)

29. B. FINANCIAL UNDERWRITING
ECONOMIC VALUE OF LIFE
 Age
 Remaining Productive Life
 Gender
 Current income

30. FINANCIAL UNDERWRITING
 Personal Expenditures
 Assets
 Liabilities
 Net Assets

31. UNDERWRITING
SELECTION
Vs
ANTISELECTION

32. FEMALE LIFE
Risk on the life of employed or self employed,
married or unmarried female is treated at par with
similar risk as on male life.
• Age
• Marital Status
• Educated
• If married; details of coverage on the life of her husband

33. FEMALE LIFE
• Number of children and their ages
• If unmarried, whether parents and /or other siblings
are insured

34. FEMALE LIFE
Category A
Married, Educated, housewife, and husband also insured
A (i) If Graduate
Treat at par with male life. The sum Cover is limited to 75% of
Sum Assured on Husband’s Life subject to maximum 1000,000
A (ii) If Matriculate
Treat at par with male life. The Sum Cover is limited to 50% of
Sum Assured on Husband’s Life to maximum 500,000.
No Rider

35. FEMALE LIFE
Category B
Married, Non Matric, housewife, and husband also insured
B (i) with Children
Treat at par with male life. The sum Cover is limited to 50% of
Sum Assured on Husband’s Life subject to maximum 500,000
Medical may be required
A (ii) with out Children
Treat at par with male life. The Sum Cover is limited to 25% of
Sum Assured on Husband’s Life to maximum 250,000.
No Rider - Medical may be required

36. FEMALE LIFE
Category C
Married, Unmarried, Non Matric,
illiterate, housewife, and
husband/Parent/sibling NOT insured
DECLINE RISK

37. Question & Answer
Session