FAQ About Takaful



1. What is Takaful

Takaful is an insurance concept which is grounded in Islamic Muamalat, observing the rules and regulations of Shariah. It is a concept that has been in practice for over 1,400 years.

In principle, Takaful system is based on mutual co-operation, responsibility, assurance, protection and assistance between groups of participants. In other words, it is the provision of shared contributions to help those who are in need.

2. What are the differences between Takaful and Conventional Insurance?
TakafulConventional Insurance
Based On Mutual Co-Operation And ʼTabarruʼBased Solely On Commercial Factors
Free From ʼRibaʼ, ʼGhararʼ And ʼMaisirʼ.Abundant With ʼRibaʼ, ʼGhararʼ, And ʼMaisirʼ.
Syariah Advisory Council (SAC).No Syariah Advisory Council (SAC).
Profit Will Be Shared Among Operator (Company) And Participant On Mudharabah Basis Or Performance Investment Fee.Interest Practice.

The commercial conventional insurance contract is prohibited (haram) according to the Shariah because of the following reasons:

[a] Gharar
‘ Gharar’ is taken from Arabic word which means uncertainty. According to scholars, ‘gharar’ is defined as a contract where the results are not known or hidden or one of the possibilities where the frequent occurrence is the one that is more feared. The conventional insurance contract is a contract of exchange whereby the insured pays the price (premium) and the insurer provides compensation. In a contract of exchange, the ‘gharar’ element that can nullify the validity of the sale is consent. The Quran says which means

" O who you believe, do not eat property amongst you in a false way, except through trade by mutual consent."(An-Nisa’:29)

However, the subject matter in a contract is required in determining consent because it is not logical to say that one gives consent to something that he does not know. There are four types of ‘gharar’ which are clarified by our scholars. These are:
i. Gharar in the outcome
When the contract is made, neither the insurer nor the insured knows the outcome of the contract. The insured does not clearly know whether he will get compensation or not as an exchange to the premium that he has paid. Similarly, the insurer does not know the outcome.

ii. Gharar in the existence
In the conventional insurance contract the insured does not know the existence (quantum) of the compensation since it depends on the outcome that may or may not happen.

iii. Gharar in the results of the exchange
When the contract is made, neither the insurer nor the insured knows the outcome of the exchange. The insured does not know whether they will receive the compensation in exchange for the premium that they pay. Similarly, the insurer does not know how much premium they will receive. Sometimes the insurer receives the premium only once or a few times, but has to indemnify an amount that is not commensurate with the premium.

iv. Gharar in the contract period
According to some scholars, when a contract is deferred, the period must be made known. If not the contract is considered void. The same situation arises in the conventional insurance contract whereby compensation is based on a time frame that is not known.

[b] Maisir
‘ Maisir’ is also taken from Arabic word which means gambling. The conventional insurance contract is equated with gambling where if the peril (risk) occurs, the insurer will lose. On the other hand if the peril does not occur, the insured will lose. Furthermore some scholars argue that the source of the money that is being paid as compensation is not determined.

[c] Riba
‘ Riba’ is taken from Arabic word which means interest. There are many verses that prohibit ‘riba’. What exactly constitutes ‘riba’ has always been a disagreement among scholars. Some scholars are of the opinion that interest whether on principal or late payment is ‘riba’. Other forms of ‘riba’ established by the sunnah of the Prophet is the exchange of ‘ribawi’ elements where there is a difference in time and/or quantity. The ‘ribawi’ elements mentioned by the Prophet are gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt. Rightly or wrongly, by making an analogy, money is similar to gold and silver where it is a medium of exchange. Therefore it is a ‘ribawi’ element and that in the contract of exchange between the insurer and the insured there is difference both in quantity and amount. Furthermore, these scholars argued that conventional insurance companies give out loans from the premiums received and charge interest and no doubt that this is ‘riba’.

3. What is Al-Wakalah?

Al-Wakalah is the contract wherein the participant authorizes the operator to conduct the affairs of the fund on his/her behalf. Through this contract, Takaful IKHLAS will charge a management fee from the Ta’awuni Account Pool (TAP) for its duty.

4. What is the investment fund in Takaful IKHLAS?

This is the fund to invest the participant’s contribution through Islamic counters, Government Islamic Certificate, Islamic Bonds, Fixed deposits in Islamic Financial institution.

5. What is the main difference between Personal Investment Account (PIA), Personal Risk Investment Account (PRIA) and General Risk Investment Account (GRIA)?

PIA is a Fund for Family Takaful’s products which consist of protection and investment features but PRIA and GRIA Fund just for General Takaful’s product which consist of protection feature only.

6. Please describe the Ta'awuni Account Pool.

The Ta’awuni pool comprises by two major funds:

a. Expenses Fund
Expenses Fund is a fund for payment for Management expenses, retakaful and technical reserves. Through al-wakalah concept which applied in Ta’awuni pool, Takaful IKHLAS will charge a management fee from this pool.

b. Risk Fund
Risk Fund is a fund for payment of claims.

7. What is the procedure of Family Takaful claims?

Faced with a tragedy in life? Are you one of our participants? If yes, we are here to help you. There are various types of claims that we handle and they are:

i. Death Claims

ii Immediate Death Expenses

iii Total Permanent Disability (TPD) 

iv Hospital Benefit (HB)

vi Waiver of Contribution (WC)

vii Critical Illness

viii Family Income Benefit

How to submit a Family Takaful Claim:

  1. A claim must be notified to the Family Takaful Claims Department in writing immediately after the event. Please contact 03-27239999 to obtain a claim form.

  2. Claimant’s statement must be completed and signed by the rightful claimant (s) to whom the benefit is payable in the following manner:-
    a) Wasi 
The statement must be completed and furnished by the named person in the wasi form.
    b) Proposed Hibah
The statement must be completed and furnished by person(s) whom the benefit is to be payable.
For minor cases, the statement must be completed by his parents or legal guardian.
    c) Assignee 
The statement must be completed and furnished by Assignee(s).
  3. Obtain and forward all the necessary documents to support the claim to the Family Takaful Claims Dept.

  4. All photocopies of documents to support the claim must be certified as true copy by a Commissioner of Oath or any or any of Family Takaful Claims personnel.
  5. All documents required must be furnished by the claimant at the claimant’s expense.
8. What are the documents required for Family Takaful claims?
Document RequiredType Of Claim
DeathTotal Permanent DisabilityImmediate Death ExpensesWaiver Of Contribution /Family Income Benefit **Hospital Income BenefitCritical Illness
Claim FormXXXX  
Physicianʼs StatementXX X X
Death Certificate (Certified Copy) / Burial PermitX XX  
Original Certificate ContractXX X  
Police Report / Post Mortem Report (Accident Case Only)XX X  
Proof Of Age I.E. Photocopy Of IC / Birth CertificateX  X  
Proof Of Relationship Between Claimant & Participant I.E. Marriage CertificateX  X  
Hospitalization Claim Form    X 
Certificate Of Hospitalization, If Required    X 
Discharge Note    X 
Critical Illness Claim Form     X
Certificate Of Medical Attendant (Critical Illness)     X
Supporting Medical Reports E.G. Pathology Report For Cancer     X
Letter Of AdministrationX     

Note : 
1) ** denotes the claim for this benefit should be made through Death/TPD claim’s form.
2) For further enquiries on the Claims Procedure, please do not hesitate to contact Family Takaful Claims Department at 03-27239999

9. How long is the process for Family Takaful claims?

It takes about 3 weeks.

10. How is the payment method for Family Takaful claims?

The payment will be made via cheque.

11. What is E-Covernote?

IKHLAS Motor provides our participants with immediate issuance of new or renewal of cover note. It is also electronically linked to JPJ for road tax disc issuance. 

12. What is the procedure of Motor claims?

You met with an accident and wants to file a claim with us. 

Step 1 - Make a police report immediately after the accident

Step 2 - Notify our claims department of the accident and get the claim form to be completed. If the vehicle can be driven, send it to the nearest panel workshop, otherwise kindly call our toll free number 1-300-88-0048 for towing services.

Step 3 - Make sure you submit the supporting documents to enable us to expedite your claim.

Step 4 - Authorization for repairs would be issued to the workshop within 24 hours upon receipt of estimate of repairs or adjustor’s report.

13. Can the participant send his vehicle to any workshop of his choice?

Yes, but the repairer must be our panel workshop or he/she can go to the Franchise repairer. If panel repairer please refer to the list of our panel workshop.

14. How long is the surrender process?

Upon receiving the completed documents, it will take about 10 working days.

15. When is the effective date of surrender?

The date we receive the application for surrender letter.

16. I want to change my payment type from AutoDebit to BIRO. What are the documents that I have to submit for AutoDebit/Credit Card/FPX and BIRO application?

The requirements to change the method of collection from Auto Debit to BPA are as follows:
a. Request for Change form (optional)

b. Full set of BPA forms (mandatory)

i. BPA 1/79 forms

ii. Copy of I/C (payor who works at government)

iii. Latest salary slip

iv. ‘Had kelayakan Caruman’

17. I want to change my Credit Card/AutoDebit number. What should I do?

You need to submit:

a. Request for Change Form

b. Fill in the new Auto Debit/Credit Card form

18. My Credit Card has expired. What should I do?

You need to update the latest expiry date through written notice.

19. How long does the AutoDebit/Credit Card/FPX and BIRO starts?

a. AD MBB/BSN – 2 weeks from enrollment date

b. Credit Card-1 day from enrollment date

c. BPA-2 months from submission date to BPA

d. FPX-45 days from submission to BIMB

20. Can I change my policy term?

Based on company guideline, the change is not allowed. The reasons are once changes happened, it will affect the entire premium and PIA/PRIA or either premium will be increased/decreased and it will start from the certificate entry age.

21. How can my policy be lapsed even when there are continuous deductions done from my Credit Card/Auto Debit/BIRO/SI every month? Has the money been transferred from my old policy to the new policy?

The possibilities may come from:

a. Deduction start late about 2-3 months after policy in-force.

b. Received payment but no reference (policy) number or wrong reference number for SI/Maybank2U/bank in at bank counter such as Maybank, BSN and etc. Therefore the payment was not keyed in and policy will overdue and will become lapsed.

22. Can I have more than one policy?

Yes, you can.

23. Status of policy issuance: When is it issued and when can it be delivered?

a. Standard cases/without error:10 days

b. With error: more than 10 days

24. How do I renew my car insurance? Can I renew it online?

You may browse our website at www.takaful-ikhlas.com.my. There is full information on the page before you can proceed to issue the Cover note by following the step by step instructions.

25. Is online renewal applicable for motorcycles as well?

No, for the time being it is applicable only for Motor-Private Cars under comprehensive coverage only.