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P. Ahmed, Director & CEO Pak-Qatar Family Takaful Limited
Lahore- August 25, 2008
FAMILY TAKAFUL
Family TakafulProducts & Services
By
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What is Family Takaful?
• It is an Islamic alternative to conventional life insurance
• The concept is based on the principles of Risk Sharing (as opposed to Risk Transfer)
• Life cannot be insured but the beneficiaries can be financially supported by a system of mutual assistance
FAMILY TAKAFUL
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How does it function?• Participants pool their savings into two separate accounts with the
FT Operator– Into Waqf Pool:
• As taburru: to eliminate Riba and make Gharrar & Qimar ineffective
• Nobody owns the Waqf Pool;The FT Operator acts as its Wakeel
• All claims are paid from the Waqf Pool– Into Participants Investment Account:
• Which is unit-linked• Contributions are invested to generate Halal profits for
members
FAMILY TAKAFUL
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The Local Family Takaful Industry• Pioneers: Pak-Qatar Family Takaful Limited• Players Strength: Currently 2, with 1 more to arrive
in near future• Regulations:
– Only dedicated companies can operate; no window operations allowed
– Paid-up Capital requirement: Rs. 500 million– The Wakala-Waqf Model is being followed– Regulated by Takaful Rules 2005 and Insurance
Ordinance 2000• Legal: All Family Takaful companies are Regulated by
S.E.C.P• Shari’ah Board: An Independent Shari’ah Board
supervises business operations and product development for Shari’ah compliance
FAMILY TAKAFUL
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Penetration of Life Insurance in Pakistan
• The graph below shows the penetration of life insurance products in Pakistan and other regional countries:
FAMILY TAKAFUL
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There is a Gap !!!!!!
FAMILY TAKAFUL
Gap!!!Present Financial Protections ToolsPresent Financial Protections ToolsPublic
BeliefsPublic Beliefs
Public Awareness
Public Awareness
Public NeedsPublic Needs
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Bridging the Vital Gap• Family Takaful can bridge this gap by – Creating Awareness amongst public regarding
risk mitigation and long terms saving– Offering need-based products and services– By maintaining high level of service quality
and ethical standards
FAMILY TAKAFUL
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Products & Services Available
FAMILY TAKAFUL
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Products & Services Available
FAMILY TAKAFUL
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Value Propositions in Family Takaful
• Usability– Win-Win:
• The only protection + savings tool available. Not only does it provide financial protection against specific risks, it also generates Halal profits
– Surplus Sharing: • Surplus shared between participants who did not make any
claims– Non-discriminatory: (FT is for everyone)
• UHNWI , HNWI• Corporate• Mass Affluent• Poor & Needy
– Affordable: • Cost-effective Takaful solutions available for every segment
of the societyFAMILY TAKAFUL
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FAMILY TAKAFUL
Value Propositions in Family Takaful• Reliability & Credibility• SECP:
• All FT Companies are registered and supervised by SECP as per the rules defined in Takaful Ordinance 2005
• Shari’ah Board: • An independent Shari’ah Board comprising of world-
renown Scholars supervises all business operations and product development for Shari’ah compliance
• Market Capitalization: • High paid-up capital requirements ensures only serious
and dedicated operators enter the Takaful market• Heavy investments in technology and human capital as a
result• ReTakaful:
• ReTakaful arrangements with global companies such as Munich Re which is a ‘AAA’ company
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FAMILY TAKAFUL
Through Family Takaful, we will be
• Promoting brotherhood, mutual cooperation and solidarity between members of community
• Promoting the cause of Islamic Economics & Finance in Pakistan
• Fighting against poverty, destitution and dependency, by promoting self dependency
• Promoting ethics and complete transparency in business processes
• Tapping the untapped potential of life insurance market in Pakistan
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FAMILY TAKAFUL
Jazaakumullah Khairan