1. Introduction to Takaful &
MicroTakaful
Partnering with people
Capt. M. Jamil Akhtar Khan
ACII, MCIT, Master Mariner
Chief Executive Officer
TAKAFUL PAKISTAN LIMITED

2. Contents Introduction Benefits of MicroTakaful The Takaful advantage
Global Landscape
Takaful Products
Prospects in Pakistan
Initiatives by Takaful Pakistan

3. Introduction
The word ‘Takaful’ has been derived from the Arabic root word ‘ Kafala’ meaning ‘mutual guarantee’.
It is risk-sharing instead of risk-transfer.
Takaful is a practical manifestation of the Quranic injunction for mutual co-operation and assistance for the common good/benefit.
It encompasses the predominant elements of social good, brotherhood and solidarity – founded on the core Shariah principles.
By doing so, one gets benefited – from cradle to grave and even in the Hereafter!

4. Introduction Micro-insurance defined:
“Risk-pooling products that are designed to be appropriate for the low-income market in relation to cost, terms, coverage, and delivery mechanisms”.
MicroTakaful refined:
“A mechanism to provide Shariah-based protection to the blue collared, under-privileged individuals at an affordable cost”.

5. Benefits of MicroTakaful
Helps people sustain their financial well being.
Creates feeling of togetherness & security.
Opens avenues for joint efforts for mutual benefits.
Cooperative approach and outlook.
Result s in migration of benefits at individual level.
Ensures that Society benefits at large.

6. The Takaful Advantage WAQF S H A R E H O L D E R S’ F U N D (S.H.F.)
Wakalah Fee
Investment
Income
Mudarib’s Share of PTF’s Investment Income
Management Expense of
the Company
Profit/Loss
Takaful Operator
Investment by
the Company
WAQF
Operational Cost of Takaful / ReTakaful
Investment
Income
Claims &
Reserves
Surplus (Balance)
Participant
P A R T I C I P A N T S’ T A K A F U L F U N D
(P.T.F.)

7. The Takaful Advantage
“ … they seemed satisfied with the convenience and affordability of the policy, but some thought that the premium should be reimbursed if they do not file a claim”. Excerpt from The Demand for Micro insurance in Pakistan by ELIZABETH MCGUINNESS AND VOLODYMYR TOUNYTSKY MARCH 2006

8. Global Landscape
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.

9. International Product Offerings

10. Delta Life Insurance Company, Bangladesh

11. Vimo SEWA, India

12. People’s Insurance Company, China

13. MicroTakaful Products
Crop & Livestock Takaful
Integrated Takaful Packages
Health/Hospitalization Takaful
Annuities/Endowment
Property Takaful
Personal Accident
Life Takaful
Most Complex
Least Complex

14. Takaful prospects in Pakistan
97% Muslim population.
Demand for insurance increasing with increase in per capita income.
Personal lines insurance business (leasing, health, medicare) growing at a higher rate than the other conventional classes.
Islamic banking on sound footing with support of the government.
MicroTakaful.

15. Takaful Pakistan’s Initiatives
Coverage to over 100,000 low-cost houses.
Synergy with NGOs.
Students’ Healthcare/Campus Care Cover
Factory workers’ & Daily wagers
Crop & Livestock Takaful
Credit coverage for Islamic Microfinance.
Covers tailored for SMEs financing.
All above at ‘no profit basis’

16. Conclusion Takaful defined Benefits & Advantage International scenario
Takaful Products
Prospects in Pakistan
Takaful Pakistan’s Initiatives

17. Thankyou