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 Tabarru’ (donation) by the Participant into the general takaful fund shall constitute a commitment made by the Participant.The actual Tabarru’ (donation) is deemed to have only occurred upon payment of any claims by eligible participants of the General Takaful Fund and claims-related costs.
This product applies the Tabarru’ concept, whereby the Participant agrees to pay their Contribution to the general takaful fund for the purpose of mutual financial assistance among Participants of the takaful fund as per Certificate contract.
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 promises to reward the Operator for its achievement or good performance in managing the General Takaful Fund that leads to surplus to the fund.
Qardh Hasan means an interest-free financing provided by the Operator in the event of deficit in the general takaful fund.
Distribution of surplus
Any surplus (i.e. Gross Contribution (net of Wakalah Fee), exceeding claims, claims-related expenses, Retakaful, Reserves and other deductions as endorsed by the management and Shariah Committee of the Takaful Operator) from the General Takaful Fund may be distributed between eligible Participants and the Takaful Operator on 50:50 ratio based on Ju’alah.