microtakaful ( islamic micro insurance ) 5 th june, 2015 manila- philippines presented by: muhammad...

MicroTakaful

( Islamic Micro Insurance )

5th June, 2015

Manila- Philippines Presented by:

Muhammad Zubair Mughal

Chief Executive Officer

AlHuda CIBE

Contents

• Introduction• Microtakaful defined• Historical perspective • MicroTakaful schemes in other countries • Micro Takaful advantage• The way forward• Conclusion

Introduction

Micro-insurance defined:“Generally, micro-insurance is viewed just like other normal

insurance on small scale for low-income people”

MicroTakaful redefined:“A mechanism to provide Shariah-based protection to the blue collared, under-privileged individuals at an affordable cost”.

Introduction Cont’d. …• MicroTakaful can help people improve.

• Microtakaful will help them sustain their financial well being.

• Feeling of togetherness & security.

• Opens avenues for joint efforts for mutual benefits.

• Cooperative approach and outlook.

• Result oriented

• Society benefits at large.

Global Landscape of Microinsurance

• Only eighty million out of the world's 2.5 billion poor are currently covered by some form of micro insurance.

• Only 3% of poor lives are insured in India and China.

• Only 0.3% of the poor are insured in Africa.

• In 23 of the poorest 100 countries in the world, there is currently no identified micro insurance activity.

Fire TheftRainfall Floods

Agriculture

Property

Prices

Hospitalisation

Dental

Opt

ical

Dread Disease

Out-patient

Health

SurgicalDisability

Dismemberment

Partial

Permanent

Temporary

Total

Credit Disability

Life Insurance

Credit Life

FuneralEndowments

“Transition funds”

Pensions

Education Life

Types of MicroTakaful Products

Benefits of MicroTakaful

Health

Marriage

Death

Prolonged Illness

Education of Children

Business Failure/Loss of Job

Birth of ChildrenImp

ort

an

ce o

f R

isk/E

con

om

ic S

tress

Potential areas of action

Micro Takaful initiatives in Pakistan• Coverage to over 100,000 low-cost houses.

• Synergy with NGOs.

• Micro Takaful Health Products – CWCD, KKCB & Sungi

• Students Healthcare/Campus care cover

• Factory workers’ & Daily wagers

• Crop Takaful

• Credit coverage for Islamic Microfinance.

• Covers tailored for SMEs financing.

• All above at ‘no profit basis’.

Takaful Pakistan’s MicroHealth Products

Center for Women Center for Women Cooperative Development. Cooperative Development.

(CWCD). (CWCD). No of Lives covered 14000 Beneficiaries ( Husband and Wife )

Benefits:Benefits:Hospitalization Rs. 35,000Daily Room Limit Rs. 500Maternity Rs. 5,000 (Sub limit)Rate per family Rs. 570

Takaful Pakistan’s MicroHealth Products

Ministry of Zakat & Ushar No of Lives covered 100,000,0 Beneficiaries (Husband, Wife and 3

Children's) Benefits:Benefits:Hospitalization Rs. 150,000Individual Limit Rs. 25,000Daily Room Limit Rs. 500Maternity Rs. 5,000 (Sub limit)Rate per family Rs. 695/-

What is required?

When there is a will, there is way!

End of presentation

Jazzakallah khair !

Zubair.mughal@alhudacibe.com