motor insurance
Transcript of motor insurance
MOTOR TAKAFUL
BY:ASMA LIYANA JA’AFARIZZATI NATASHA AZIZ
NURUL NABILA RUSLENSYAFIZNUR SAEDEN
R2
HISTORY TAKAFUL IN MALAYSIA
Development in Malaysia in the early 1980s. Inspired by the prevailing needs of the Muslim public for a
Shariah compliant. Triggered by the decree issued by the Malaysian National
Fatwa Committee.
CONCEPT OF TAKAFUL• Derived from an Arabic word which means JOINT GUARANTEE.
• Can divided by 3 concepts;1) TABARRU CONCEPT
Donation, gift or contribution. Embraces the elements of shared responsibility.
2) MUDHARABAH CONCEPT Share the profit with two parties. Losses is borne by the participants.
3) WAKALAH CONCEPT Takaful operator earns a fee for services. Fee may be varied based on the performance of the takaful.
INSURANCE vs TAKAFULINSURANCE TAKAFUL
CONTRACT• Exchange contract (sale and
purchase) between insurer and insured.
• A combination of tabarru‘ purchase) between insurer and contract (donation) and agency insured, or profit sharing contract.
RESPONSIBILITY OF POLICYHOLDER
• Policyholders pay premium to the insurer
• Participants make contributions to the scheme.
• Participants mutually guarantee each other under the scheme.
LIABILITY OF THE INSURER
• Insurer is liable to pay the insurance benefits as promised from its assets (insurance funds and shareholders’ fund).
• Takaful operator acts as the administrator of the scheme and pays takaful benefits from takaful funds.
• In the event of deficiency in the takaful funds, takaful operator will provide interest-free loan to rectify the deficiency.
INVESTMENT OF FUND• No restriction apart from
those imposed for prudential reasons.
• Assets of the takaful funds are invested in Shariah-compliant instruments.
CONCEPT MOTOR TAKAFUL
• Covers against loss or damage to your own vehicle due to accidental fire, theft or accident, and/or third party bodily injury or death, third party property loss or damage.
• Insured contribute a sum of money to a general takaful fund in the form of participative contribution (tabarru').
• Undertake a contract (aqad) to become one of the participants by agreeing to mutually help each other.
TYPES OF COVER• THIRD PARTY
Protects against the third party’s death, bodily injury and/or property damage.
• COMPREHENSIVE Protects against the third party’s death, bodily
injury and/ or property damage; as well as loss and/or damage to your vehicle due to accidental fire, theft or an accident.
DO'S AND DON'TS1) WHEN APPLYING FOR TAKAFUL PLAN
2) AFTER A LOSS OR DAMAGE