p. takaful a tool for socio-eco development 8-02-11[1]
TRANSCRIPT
8/6/2019 P. Takaful A Tool for Socio-eco Development 8-02-11[1]
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PervaizAHMED
CEO Pak-Qa ta r FamilyTakaful Limited
8 Feb , 2011, Islamab ad
T A K A F U L
Shari’ahCompliant Alternate to
Conventional Insurance
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Flow o f Presentation
› Risk Mitiga tion from Shariah’s Perspec tive
› How does Taka ful Function?
› Origin & Development of Takaful Worldwide & in Pakistan
› Need for Takaful & How to imp rove insurance penetration
› How can Takaful produc ts and services can help in soc io-economic development.
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Risk Mitigation from Shariah’s Perspec tive
Is the c onc ept of risk mitigation permissible in Islam?
• This v ery c onc ep t is not o nly law ful/ pe rmissible in Islam b ut is in fac tencouraged
What are the available risk mitiga tion tools?
• A co ncept m isunderstood as against Tawakul..Avo id using Risk Mitiga tion
Tools
• Fundsm ay no t be suffic ient to compensa te theloss
Self-Insurance or setting asidecontingenc y money for the
rainy da y
• A commerc ia lly v iab le system but con ta ins theelem ent of Riba, Gharar, and Qim ar/Maysir
Conventional Insurance
• A c omm erc ia lly v iable system w hic h is alsoShariah Com pliant
Taka ful
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Risk Mitigation in Islam
Islamic history is rep lete with examples fea turingrisk mitiga tion ac tivities:
Hadith:
“ Tie the Ca m eland then Subm it
to the Will o fAllah”
DhamanKhatr a l-Tareeq:
A p erson wo uldunde rta ke anot her
person’ s riskswithout a ny
consideration/feein return
Dhaman Al-d’ark:
A p erson wo uldinfluence a sa le by
promising tocomp ensat e for
the loss if thesubject-matterprov ed faulty
Aqila:
A risk sharingmecha nism in
wh ich c ommunitymemb ers pooled
their sha re o f Diya t(blood money)
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Shariah’s Ruling on Conventional Insuranc e
Concept of
Insurance?
Content of
Insurance?
?Shariah has no objections as to the concept or objectives
of insurance ; it only has reservations with the way it is
carried out i.e. the process of insurance
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What is Allowed?› Risk Transfer without Consideration (premium)
› Risk Sharing between Partic ipants
› Basisof Contract: Tab urru i.e. unilate ral non-c om mutative
› Takaful Operator has no ownership c la im on the contributions
(prem iums) paid by the part ic ipants› The Part ic ipants lose ownerships rights onc e the c ontribution is
paid on the basisof Taburru
› The co ntribution bec om esthe property of the Waqf
› Waqf isowned by Allah Almighty
What is not Allowed?› Risk Transfer Against Fixed Consideration (premiums)
› Basisof Contract: Muaw aza i.e. bi-lateral sales& purc hase
› Reason: Such a c ontrac t involvesRiba, Gharar, & Qim ar/M aysir
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How does it Func tion? General Takaful
Wakalah Wakala
h
Wa kalahWakalah
Takaful
Operator
Investment Participant
Participant
Participant
Participant
Waqf Pool
Risk sharing
Between
Participants
Wa kalahWakalah
Surplus
Wakalah Fee, Claims, Re-Takaful
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Participant’s
Investment
Ac c ount (PIA)
Waq f FundOp erato r /
Wakeel
ParticipantContributions
Profit s from Inv est ment
Wakalee Fee(s)
for Inv est mentManagement
Cont ribu t ions forTakaful Bene fit
Paymen t of
Claims
Surp lusDist ribut ion ( ifany)
Waka la Fee forOperating Waq f
Fund
1
23
4
5
6
7
How does it Func tion? Family Takaful
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Origin of Modern Taka ful
› During co loniza tion, the Muslims lost their va lue system to westernsoc io-eco nomic, p olit ical,a nd legal orde r
› M uslim Rev ival and Rena issance bega n ea rly 1940s
› Asa result, d ev elopment of Islamic Banking started in 1970s
› First Islamic Comm ercial Ba nk, the ‘ Dubai Isla mic Bank’ , w asesta b lished in 1975
› There was a legal requirement that the underlying assets financed byIslamic Banksneed to be insured e.g. Car Ijarah
› Islamic Banks c ould not avail insurance from c onventional compa nies
asthat would be detrimental to the ir image and the overa ll ca use
› AsIslamic Banking ind ustry grew the need for Ta kaful futherincrea sed
› First Takaful company wa s estab lished in Sudan in 1979, fo ur yea rsafter the estab lishment of the first Islamic Ba nk
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Need for Taka ful was felt after the development of
Islamic Banking
1975First Islam ic Bank
1979First Taka fu l Co.
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Deve lopment of Takaful Industry
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2004 2006 2007 2010 2012
1 . 4
2
3 .
4
4
. 3
8
(USD) BILLION134# of TakafulOperators in2009
Approx.
36WindowOperators
15IraniOperators
>18Re-TakafulOperators Global Market Size (2009) E&Y
Worldwide Takaful Developments & Growth
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Re-Takaful Worldwide› Islamic Taka ful & Retaka ful Co. (IRTCo.) (Bahamas)
› Hannove rReTaka fulB.S.C. © (Bahrain)
› Solida rity Islam ic Tak a ful & Retak aful Co. (Bahrain)
› PTRea ssuransi Internasiona l Indonesia (Indonesia)
› Amin Reinsurance Comp any (Iran)
› Al Fejr Retak aful Insurance Co. (Kuwait)
› Asea n Re-Taka ful Internationa l (Malaysia)
› MNRBReta ka ful Berhad (Malaysia)
› Islam ic Taka ful & Re-ta ka ful Co. (Saud i Arab ia)
› Islamic Taka ful and Re-Taka ful Co. (ITRCo.) (Saud i Arab ia)
› Tokio Marine Nichido Retak aful Pte Ltd (Sing apore)
› Nationa l Re-insurance Co. (NRICo.) (Sud an)
› Sheikhan Insurance & Reinsurance (Sud an)
› Suda nese Insurance & Reinsurance Co (Sud an)
› BEIT Iaada t Ettamine Tounsi Saoudi Re- insurance (B.E.S.T. Re)(Tunisia)
› ACRReTaka ful Hold ingsLim ited (UAE)
› Duba i Islamic Insurance & reinsurance Co. (UAE)
› Taka ful Re Limited (UAE)
Source: ICMIFTakaful, www.takaful.coop
> 18Re-Takaful
Operators
worldwide
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• Insuranc e Ordinanc e is issued whic h inc lude s prov ision fo r Taka ful;the w ord “ Takafu l” is used
2002
• IJTIMA’ he ld in Darul Uloom , Karac hi on perm issib ility of Takaful2003
• A c om m ittee to fram e Takaful rules wa s founded2004
• SECP no tifie s Takaful Rule s2005
• First General Takaful Company established ( Pak-Kuwait
General Takaful )
2006
• First Family Takaful Company est ab lished (Pak-Qa t a r Family Takaful)
• First Takaful Group c a t ering b ot h Family (Life) an d G eneral Takaful needs est ab lished (Pak-Qa t ar Ta kaful Group)
2007
Tota l 5 Opera tors: 3 fo r Gene ral Takaful & 2 for Fam ily Takaful, sinc ethe prom ulgation of Takaful Rules in 2005
History of Takaful in Pakistan
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Need for Taka ful – from Public’s Perspective
Gap!!!
Present
Financial
ProtectionsTools
Public
Beliefs
Public
Awareness
Public
Needs
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Important Points !
Takaful is now a legitimate and commerc iallyviable alternate to conventional insurance.
• M ore than 60% of Takaful c ustom ers in Ma laysia in Ma laysiaare non-M uslims
• This mea ns tha t p e op le a re op ting for Ta ka ful on the b a sis ofperforma nce and not religioussentiments
With the exc ep tion of few most o f the Muslim
domina nt c ountries ha ve poor insuranc epenetra tion ra te.
• Only 8% to 10% of families in Pakistan have a ny form ofinsurance
• Takaful can imp rove this sta tistic
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Takaful Produc ts?
› Takaful has a rich produc t portfolio and provides a ll the fea turesand benefits which conventional insurance has to offer
› Family/Life: Group Life, Health, Retirement Income, Savings &
Protec tion Plans, Mo rtgage Takaful, Critica l Illness, etc
› Gene ral: Mo tor, Fire, Trav el, Ma rine, Persona l Acc ident etc
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How Takaful can help in soc io-ec onomic
development ?
By inc rea sing penetra tion of Ta kaful, theconc ep t of self relia nce can be p romoted .
• Protec t a ga inst loss of income in ca se ofdea th or d isab ility
• M ob ilize sma ll savings to meet long termsinvestment need s
Family Ta ka fulp rod ucts canhelp to
• Prote c t a ga inst fina ncial losses d ue to thedamage to a ssets and p rop erties
Genera l Takafulp rod ucts canhelp to
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Way-Forward?
Structure o f Waq f
Knowledge andtools of risk
management
Institutionsand p roduc tswhich c ould
result in soc io-economic
development
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Jazaakum Allahu Khairan
May Allah Reward you
www.pakqatar.com.pk