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TAKAFUL

SUBMITTED TO:

Sir Muneer Ahmed

SUBMITTED BY:

ANUM ELAHI (10528)

SAYEM HUSSAIN (9919)

MAAZ BIN SHAHOOD (10308)

IQRA UNIVERSITY

DEFENCE VIEW SHAHEED MILLAT ROAD

(EXT) KARACHI – 75500

DATE: 30-04-2011

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T a b l e o f C o n t e n t

S.No Topic Page. No1 INTRODUCTION

1.1 Shariah Board1.2 Vision1.3 Mission1.4 Ambition1.5 Board of Directors 1.6 Shariah Adviser 1.7 Management Profile 1.8 Sponsors 1.9 Paid-up Capital2 PORTFOLIO

2.1 Fatwa on Takaful2.2 Profile of Shariah Board2.3 Shariah Compliant Certificate 3 PRODUCTS

3.1 Indivisual 3.1.1 Motors3.1.2 Firw3.1.3 Marine3.1.4 Miscellinous3.2 Corporate

3.2.1 Property3.2.2 Motor/ Accident3.2.3 Marine3.2.4 Health

4 NETWORKS 5 REMARKS

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Introduct ionTakaful Pakistan Limited was incorporated in June, 2006 with its registered head-office in

Karachi. With an authorized capital of Rs. 300 million, all fully paid-up, the Company is

sponsored by reputable financial institutions both local and foreign.

Managed by a team of qualified and experienced professionals and supervised by a distinguished

Shariah Advisory Board of international repute, Takaful Pakistan Limited has the capacity to

underwrite risks in all avenues of General Insurance namely, Property (Fire & Engineering),

Marine, Motor, Liabilities, bonds & guarantees, etc. In addition, the Company has the expertise

and arrangements with overseas ReTakaful operators enabling it to offer comprehensive

coverage for large infra-structure projects, specialized risks and umbrella/blanket covers

specifically tailored for Islamic banking operations as well as for large corporate groups. The

Company currently operates with a network of branches in fifteen major cities in the country.

Takaful Pakistan Limited aims to lead the contemporary insurance/Takaful market ensuring that

its operations are riba-free and are in line with the cardinal Islamic principles. Takaful Pakistan

Limited also offers a unique option of return of surplus to its clients whereby any balance

remaining in its Waqf-Fund shall be returned to the Participants in proportion to their original

contributed amount.

Takaful Pakistan Management manages, as Takaful Operator, the general takaful operations for

the participants of its Participants Takaful Fund (PTF) 40% of gross contribution as Wakala fee

to meet the general and administrative expenses of the company.

Takaful Pakistan Management also manages the participant’s investment as Modarib and charges

25% of the general takaful investment income earned by the PTF as Modarib share.

Rating: Takaful Pakistan Limited has been assigned ‘BBB+’ rating with STABLE outlook by

JCR-VIS. It is currently the only rated Takaful Company in the country and one of the few

amongst contemporary insurance companies that have been assigned a ratings.

Sponsors: Takaful Pakistan is sponsored by the following institutions:

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House Building Finance Corporation The largest house financing organization in the public

sector.

Al-Buhaira National Insurance Company (U.A.E.)-One of the leading insurance companies of

U.A.E.

Al Baraka Bank (Pakistan) limited. A dedicated Islamic bank offering Shariah-approved financial

products.

Sitara Chemical Industries Limited the market-leader in Chlor-Alkali products in Pakistan;

committed to developing Islamic financial products.

Arif Habib Securities Limited -The fastest growing financial services provider in Pakistan.

Mal-Al Khaleej (U.A.E.) One of the companies of the prestigious Al-Rajhi Group.

Emirates Investments Group LLC (U.A.E.)-A leading investment company of the United Arab

Emirates.

Trust Securities & Brokerage Limited (TSBL) - A leading corporate brokerage and financial

advisory house based in Pakistan.

Shariah Board:

The Company’s Shariah board comprises of the following:

Mufti Mohammad Mohibul Haq (Member & Nominee of Justice (R) Muhammad Taqi Usmani)

Mufti Dr. Khalil Ahmad Aazami (Member)

Mufti Imtiaz Alam (Member)

As a new emerging venture, Takaful Pakistan Limited strives to be the trend-setter in the contemporary

insurance market in the country by providing a viable Islamic alternative to the conventional insurance.

The Company intends to maintain its services par excellence backed by efficient clients’ servicing and an

innovative approach by its dedicated team of professionals; thereby providing the best possible coverage

for the protection of risks for its valued clients.

As an emerging venture, Takaful Pakistan Limited strives to be the trend-setter in the contemporary

insurance market in the country by providing a viable Islamic alternative to the conventional insurance.

The Company intends to maintain its services par excellence backed by efficient clients’ servicing and an

innovative approach by its dedicated team of professionals; thereby providing the best possible coverage

for the protection of risks for its valued clients.

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VISION

To spread Takaful benefits beyond borders, beyond Time!

MISSION

To deliver Takaful as a viable alternative to conventional insurance.

To become the ‘top-of-the-mind’ Takaful brand for our Participants in terms of

competitiveness, service standards and business ethics

To give value for money to our shareholders and make Takaful Pakistan their prized

asset.

To become an ideal organization for our employees that encourages them to achieve self-

actualization and growth.

To contribute positively and proactively for the welfare of our society at large as well as

for the preservation of our environment.

AMBITION

To be a role model for the contemporary insurance industry and eventually bring it in conformity

with the Shariah compliant Takaful mode of insurance.

Board of Directors

1. Mr. Syed Tariq Husain (Chairman)

2. Mr. Syed Azhar A. Jaffri

3. Mr. Syed Khawaja Maaz Khairuddin

4. Mr. Muhammad Adrees

5. Mr. Tahir Naz Siddiqui

6. Mr. Ahmed Zafar

7. Mr. Shafqaat Ahmed

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Shariah Advisor:

Mufti Mohammad Mohibul Haq (Member)

Mufti Dr. Khalil Ahmad Aazami (Member)

Mufti Imtiaz Alam (Member)

As a new emerging venture, Takaful Pakistan Limited strives to be the trend-setter in the

contemporary insurance market in the country by providing a viable Islamic alternative to the

conventional insurance. The Company intends to maintain its services par excellence backed by

efficient clients’ servicing and an innovative approach by its dedicated team of professionals;

thereby providing the best possible coverage for the protection of risks for its valued clients.

Management Profile:

Muhammad Ashraf Ali Siddiqui

Professional Diploma in Insurance (PII, Karachi)

Associate of Chartered Insurance Institute, London

D.G.M – Operations

Ashraf has a diversified working experience with top insurance companies in Pakistan. He

started off as a Business Development Officer for Adamjee Insurance in 1999 and thereafter

worked there as an internee of the Pakistan Insurance Institute gaining hands-on experience in

the underwriting and claims departments of the various classes of business.He subsequently

handled the Fire underwriting and Risk Management areas of EFU General’s Corporate

Division. Ashraf then joined the New Jubilee Insurance as Manager in the Corporate Division at

its Head Office. In that capacity he was coordinating in the all underwriting and clients’

servicing matters in addition to facilitating Facultative Reinsurance placement of specialized

risks. He then briefly held an appointment in Shaheen Insurance as ‘Head of Claims’ in their

Karachi Branch and contributed his humble bit in streamlining the claims’ procedures. Ashraf

joined Pak-Kuwait Takaful Company Limited in 2004 and was a member of the core team that

set-up the various functions of the company.

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Now as D.G.M – Operations of Takaful Pakistan Limited, Ashraf has been actively involved in

all areas related to the formation of the Company and addressing the various ‘teething’ issues.

Muhammad Umer

FCMA

Head of Finance and Company Secretary

Muhammad Umer is a fellow member of Institute of Cost & Management Accounts of Pakistan

(I.C.M.A.P). Umer holds 15 years of extensive experience in the fields of Finance and Accounts

of both manufacturing and services sector and has served both national as well as multinational

companies. In the Insurance Sector, he worked in a senior management position in Guardians

Royal Exchange and was actively involved in planning and budgeting functions and overseas

reporting. Besides Insurance Sector he has worked in Textile, Distribution and sugar Industries

as a senior member of core management team.

Sponsors:

House Building Finance Corporation The largest house financing organization in the

public sector.

Al-Buhaira National Insurance Company (U.A.E.)-One of the leading insurance

companies of U.A.E.

Al Baraka Bank (Pakistan) limited a dedicated Islamic bank offering Shariah-approved

financial products.

Sitara Chemical Industries Limited the market-leader in Chlor-Alkali products in

Pakistan; committed to developing Islamic financial products.

Arif Habib Securities Limited -The fastest growing financial services provider in

Pakistan.

Mal-Al Khaleej (U.A.E.) One of the companies of the prestigious Al-Rajhi Group.

Emirates Investments Group LLC (U.A.E.)-A leading investment company of the United

Arab Emirates.

Trust Securities & Brokerage Limited (TSBL) - A leading corporate brokerage and

financial advisory house based in Pakistan.

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Paid up Capital:

The authorized and paid up Share Capital of the Company as on December 31, 2010 stands at

Rs. 300 million devided into 30 million share of Rs. 10 each in the following manner:

S. No. Name of Sponsor Number of Shares Holding% 1  House Building Finance Coprporation 8,700,000 29% 2  Al-Bhuaira National Insurance Co. 5,100,000 17% 3  Al Baraka Bank (Pakistan) Limited 5,100,000 17% 4  Sitara Chemical Industries Limited 3,000,000 10% 5  Arif Habib Corporation Limited 3,000,000 10% 6  Mal Al Khaleej Investment LLC 2,550,000 8.5% 7  Emirates Investment Group LLC 2,000,000 6.7% 8  Trust Securities & Brokerage Ltd 550,000 1.5% 

Total 30,000,000 100% 

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Port fo l io

Fatwa on Takaful:

The Islamic Fiqh Academy emanating from the Organization of Islamic conference, meeting in

its Second Session in Jeddah, Saudi Arabia, from 10 to 16 Rabiul Thani, 1406 H (corresponding

to 22-28 December, 1985) issued a resolution which in summary stated the following:

After reviewing the presentations made by participating scholars during the session on

the subject of ‘Insurance/Re-insurance’;

And after discussing the same;

And after closely examining all types and forms of insurance and deeply examining the

basic principles upon which they are founded and their goals and objectives;

And having looked into what has been issued by the Fiqh Academies and other

institutions in this regard;

Resolves

1. The commercial insurance contract…is prohibited (Haraam) according to the Shariah.

2. The alternative contract which conforms to the principle of Islamic dealings is the

contract of cooperative insurance (Takaful), which is founded on the basis of charitable

donation and Shariah compliant dealings.

Muslim jurists therefore concluded that:

Insurance should be based on the principles of mutuality and cooperation.

Insurance products should be founded on the basis of Tabarru, an Arabic noun meaning

‘donation, gift, and contribution’.

The insurance company must conduct all its affairs in line with the Shariah

The participants mutually contribute to the same fund for the purpose of mutual

indemnity in case of risk and harm.

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Profile of Shariah Board:

Takaful Pakistan Limited aims to be the trend setter for the entire industry by providing high

standard Shariah-compliant Takaful products to its clients backed by efficient clients’ servicing.

Takaful Pakistan Limited believes in transparency and Shariah Compliance in its operations. For

this purpose, Takaful Pakistan Limited has acquired the services of renowned Islamic scholars to

form a Shariah Supervisory Board that supervises all the operational activities of Takaful

Pakistan Limited and ensures that Shariah guidelines are being scrupulously adhered to by the

Company in all its activities. The Board members are not only experts in Islamic jurisprudence

but have also been playing an important role in facilitating the development and growth of the

Islamic financial system in Pakistan.

The Shariah Supervisory Board (SSB) of Takaful Pakistan Limited comprises of:

1. Mufti Mohammad Mohibul Haq (Member)

2. Mufti Dr. Khalil Ahmad Aazami (Member)

3. Mufti Imtiaz Alam (Member)

1. Mufti Mohammad Mohibul Haq - Member

A prominent young religious scholar, educated in both western as well as traditional academic

disciplines. Having accomplished his ‘O’ and ‘A’ levels from The City School, Karachi, Mufti

Mohib-ul-Haq graduated from Jamia Darul Uloom in Dars-e-Nizami and Takhassus fil Ifta

(Specialization in Islamic Rulings). He is presently also on the faculty of Darul Uloom and

Centre for Islamic Economics. He has served as a Shariah Advisor of Bank-AlHabib (Islamic

Banking) and is currently also a Shariah Advisor to ABN AMRO Bank (Islamic Banking).

2. Mufti Dr. Khalil Ahmad Aazami - Member

An extremely enlightened and distinguished graduate of Jamia Darul-Uloom Karachi, Mufti Dr.

Khalil Aazami has practiced under one of the country’s most seasoned Scholars, Mufti-e-Azam

(Grand Mufti) of Pakistan, Muhammad Rafi Usmani. He has completed his Alimiyyah and

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Takhassus fil Fiqh (Specialization in Islamic Jurisprudence) from Darul Uloom and is presently

serving as a Shariah Advisor to Bank AlFalah (Islamic Banking). Mufti Khalil is also a faculty

Member of Darul Uloom and Centre for Islamic Economics, Karachi.

3. Mufti Imtiaz Alam - Member

Mufti Imtiaz Alam is an extremely distinguished graduate of Jamia Darul-Uloom Karachi. He

studied at Jamiah Darul-Uloom Karachi for eleven years, since 1998 to 2008, where he received

Shahadat Al-Aalmiyyah (Master's degree in Islamic Studies and Arabic) and completed Al-

Takhassus Fil Ifta (specialization in Islamic Jurisprudence). In Al-Takhassus Fil Ifta, he worked

on Fatawa Mufti Azam (Grand Mufti) of Pakistan, Mufti Mohammad Shafi Usmani

(Rahimahullah), regarding “WAQF” which is the basic essence of Takaful model practices in

Pakistan and South Africa.

Besides Islamic Education, he is also well-versed with the western sciences having a degree in

B.Com from University of Karachi and in-progress Masters in Economics from the same.

Mufti Imtiaz has special interest in the promotion of Islamic Finance particularly in the

facilitation of conversion of conventional setups into Shariah-based organizations.

Our Shariah Supervisory Board consists of trustworthy scholars who are highly qualified to issue

fatwas on financial transactions and who have vast experience and knowledge in modern day

commercial dealings and transactions. The Board’s fatwas and resolutions are binding upon us

and its members are independent, having the freedom to give opinions on proposed contracts and

transactions. The role of the Shariah Supervisory Board is concurrent with that of the financial

institution itself in the sense that it has been formed from the moment the Company was

incorporated, and that it shall provide continued supervision and checking of contracts,

transactions and procedures. This has been expressly provided for in the Articles of Association

of the Company.

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Shariah Compliance Certificate:

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Products

Individual:

Motors

Private Car Comprehensive Takaful

Full Comprehensive coverage (as more specifically defined in our standard Private Car

comprehensive policy) against accidental loss and/or damage and/or theft of the motor vehicle,

including legal liability of the participant, to Third Parties arising out of the use of the motor

vehicle. The Policy is also extended to cover the risk of Terrorism to the extent of the full sum

covered of the vehicle.

Motorcycle Comprehensive Takaful

Full Comprehensive coverage (as more specifically defined in our standard Motorcycle

comprehensive policy) against accidental loss and/or damage and/or theft of the motorcycle,

including legal liability of the participant to Third Parties arising out of the use of the

motorcycle. The Policy is also extended to cover the risk of Terrorism to the extent of the full

sum covered of the motorcycle.

  Motorcycle Third Party Takaful

This is the basic plan that meets legal motor insurance/takaful requirements under Motor Vehicle

Act 1939. The policy covers legal liability of the participant to Third Parties arising out of the

use of the motor vehicle. For Third Party liability this means it covers the third party only who

may be injured or killed in an accident and whose vehicle or property may be damaged. It does

not cover damage to the Participant’s/Policy holder’s own vehicle or property or any injuries or

death to the Participant.

 

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Fire

Householder's Comprehensive Takaful

This policy is specifically designed to cover home and contents (including jewellery & cash)

against the risk of fire, earthquake, explosion, lightning, thunderbolt, flood, typhoon, burglary,

bursting of pipes, aircraft damage, damage to mirrors etc. The policy may extend to cover

personal accident, loss of rent, liabilities under workmen’s compensation act, legal liability to

third party property damage and/or bodily damage, personal document etc.

Marine

Marine Cargo Policy

Cargo interests are exposed to numerous financial risks in the course of their business of imports,

exports as well as movement of goods within the country. The transportation of cargo is

invariably carried in conjunction with marine insurance coverage as no one can afford to take the

risk of leaving his cargo uninsured.

Our Marine Cargo cover protects your goods against the various risks involved during transit, for

all types of cargo transported by the various modes of conveyance such as sea, air, land and

parcel post, from warehouse to warehouse.

The coverage can be provided on the following basis:

VOYAGE BASIS: This policy is valid for a single voyage or transit. The policy is issued before

the voyage starts. The coverage will cease immediately on completion of the voyage.

ANNUAL BASIS: In case of frequent shipments it will be cumbersome, if not altogether

difficult, to need issuance of a Marine Cargo policy each and every time. To solve this problem,

a single policy is issued to cover all the shipments during the year. Each shipment affected

during the policy period is endorsed therein by means of a declaration of shipment. The policy is

normally issued for a 12-months’ period.

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The coverage of policy is based on the type of cargo. We provide Takaful coverage for all kinds

of commodities including, but not limited to, steel products, bulk oil cargoes, containerized

products etc. This policy covers various type of cargo transported by sea, air as well as by land

conveyance. Extent of cover varies from a limited TLO to an all risk comprehensive cover in

accordance with the internationally recognized ‘Institute Cargo Clause ‘A’, ‘B’ or ‘C’.

Miscellaneous

Burglary Takaful

This policy provides coverage loss and/or damage to the participant’s property whilst within the

business premises against the risks of Theft/Burglary consequent upon forcible and violence

entry. The policy also covers damage to the premises resulting from attempted Theft/Burglary.

The policy is however issued only in conjunction with fire and allied perils policy.

Personal Accident Takaful Coverage

This is a 24 hours worldwide coverage providing compensation in case of death or loss of limb

or bodily injury to the covered resulting in temporary or permanent disablement, partial

disablement or total disablement arising out of an accident. The standard coverage may also be

extended to cover medical expenses resulting out of such accident.

Corporate:

Property: Fire and Allied perils

Household comprehensive

Shop owners

Fire consequential loss

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Motor/ Accident: Motor

Miscellaneous and general Takaful

Marine:Marine Cargo Policy

Marine Hull Policy

Marine Advance consequential loss policy

Health: General Health Policy

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Networks

Head Office:

Takaful Pakistan Limited

6th floor, Business Centre,

Plot No 19-1-A, Block -6,

P.E.C.H.S., Shahrah-e-Faisal, Karachi

Pakistan.

UAN: +92 - 21-111-875-111

PABX: +92 - 213-437 3171-80

Fax: +92 - 213-437 3195-6

Website: www.takaful.com.pk

Email: info@takaful.com.pk

Branch Offices:

Lahore:

130-E/1, First Floor, Main Boulevard

Gulberg –III, LHAORE. (Pakistan)

Tel : 042-5785162-6

UAN: 042-111-875-111

Fax : 042-5716790

Peshawar:

Office # TF-28-29, 3rd Floor,

Deens Trade Centre,

PESHAWAR-25000. (Pakistan)

TEL: 091-5250115

UAN: 091-111-875-111

Fax : 091-5250116

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Remarks