Types of Takaful:
Takaful is the protection plan that is based on the concepts of Shariah. There are many unique features that the owners of policy will enjoy. It will provide the coverage according to the Islamic rules and regulation. There will be no interest rate and the owner will surely get the benefits he has applied for. There are two basic types of takaful, and they are general takaful and family Takaful.
General Takaful plans intended to meet the insurance needs of people and corporate bodies in connection to materialistic loss or damage done due to any catastrophic condition.
Concept of General Takaful:
In this takaful Participants pay their premiums into the Takaful store as a Tabarru’. This will wipe out the components of al Gharar and bet. That is, the member consents to give their premium to the reserve with a mission to help different members secured under the different Takaful plans when in trouble.
In this way, the individuals convey the hazard and the Takaful administrator is just an overseer. Musharakah, Mudharabah, and Wakalah models can be actualized under this approach. For the most part, all the physical properties and resources are secured like home, car, and buildings.
General Takaful Products:
The measure of commitment to be paid by any members who take an interest in any of the assortment of plans of General Takaful relies upon and is corresponding to the fitting Takaful rates and the estimation of properties being secured. The benefit-sharing proportion will be made known to the member in advance and concurred by the two gatherings.
General Takaful offers all kinds of non-life risk coverage, and it is divided into following classes:
This policy provides compensation in an event of damage to the property caused by fire, lightning and explosion. And, it applies to buildings, stock, machinery, and similar contents.
It compensates losses or damages to cargo or freight on: Vessels, Aircraft or Road.
It is applicable on damage to vehicle, incurred as a result of any accident.
Miscellaneous General Takaful:
This coverage is personalized and tailor made, with the corporate requirements.
It is a contract of Taburru where non-zakat gift is made in customary interims to the Waqf Fund by the members. Under this takaful, all dangers related with human life are secured like demise, handicap, and ailment including here and now and long-haul speculation needs.
The scope of Takaful items offered falls into two classifications:
- Hazard items that are accommodated the security of the members.
- Speculation items with a component of hazard.
Concept Family Takaful:
These items have a tendency to be normal reserve funds designs where a member demonstrates his need to accomplish an objective singular amount by a predetermined time later on. Under this plan, the members pay their premiums into the Takaful store. A bit of the premium is allotted only for funds and venture, and the adjust goes as a Tabarru to develop saves like claims holds, unmerited premium saves and much more, to coordinate costs, and to pay for Retakaful or reinsurance.
This policy covers all risks associated with human life such as: death, disability, and illness; through short-term and long-term investment needs.
Types of Family Takaful plans:
Term Life Takaful:
If the life assured dies within a specified period, it provides payment of the sum assured only.
Whole Life Takaful:
This contract theoretically covers the insured and a level premium is payable for life.
It provides endowment benefit at retirement. Or, in case of earlier death of the insuree, they are paid to the dependents.
It provides lifetime financial security, with the flexibility to the changing needs and aspirations of the insuree.
It is designed to fulfill parent’s needs for their children’s marriage.
It especially caters child’s future financial needs for education.
Once more, Mudharabah, Wakalah, and Musharakah models can be executed under this approach. Here you may find details of these Islamic banking terms. Past these two primary regions, Takaful items are additionally accessible for wellbeing and benefits needs. It ought to be noticed that Takaful protection isn’t only for Muslims yet in addition for non-Muslims, as it is observed by them as a moral type of protection. Detailed study of Islamic Insurance / takaful is discussed in CIFE program offered by AIMS’ international centre for education in Islamic finance.