Takaful is a concept of mutual guarantee which is in compliance with Shariah principles. Contributions collected from participants are pooled together to provide for the benefits in the event of losses suffered by any of its members or participants. Hong Leong MSIG Takaful (HLM Takaful) as a Takaful operator is entrusted to properly manage this mutual fund
Iltizam Bi Al Tabarru’
This product applies the Iltizam bi Al-Tabarru’ concept, whereby any Contribution paid by the Participant shall constitute his commitment to make Tabarru’ (donation).
A proportion of the Contribution paid by the Participant that is deemed as Tabarru’ (donation), upon the happening of activities or events endorsed by the management and approved by Shariah Committee of the Operator, to the General Takaful Fund for the purpose of mutual financial assistance among Participants as per Certificate contract, where the Participant’s donation is meant to help others and others’ donations are meant to help the Participant.
This product also applies the Wakalah concept, whereby the Participants appoint the Takaful Operator to act on their behalf to invest and manage the takaful fund. As an agent, the Takaful Operator is entitled to receive a Wakalah Fee.
Jua’lah means an agreement in which the Participant agrees to reward the Operator for its achievement or good performance in managing the General Takaful Fund that leads to surplus arising from the fund.
Qard means an interest-free financing provided by the Operator in the event of deficit in the general takaful fund.
Surplus arising from the General Takaful Fund
Surplus arising from the Risk Fund, if any, is calculated annually at the end of each of the Operator's financial year. The said surplus shall be inclusive of the investment profit from the Risk Fund.