No Claim Rebate based on the Mudharabah (Profit Sharing) Model

Currently, Takaful Malaysia is the FIRST and ONLY Takaful Company in the country that offers the additional 15% No Claims Rebate or Mudharabah payment to all its participants in the General and selected Family Takaful Products, i.e. rebate will only be payable should there be no claims during the period of coverage.

This rebate is possible due to Takaful Malaysia’s Mudharabah business model; founded on the requirements and practices of Shariah. It upholds the virtues of cooperation, mutuality, solidarity as embodied in the concept of Takaful and the profit-sharing principle of Mudharabah. The “Mudharabah” model undertaken by Takaful Malaysia may thus, be envisaged as a profit-sharing venture between Takaful Malaysia as the operator and the participants as providers of funds who agree to reciprocally guarantee each other against certain loss or damage that may be inflicted upon any one of them. The takaful operator is the administrator of the fund and manages the fund in trust on behalf of the participants.

This is a contract between Participants and the Takaful Operator, where any profit of the Participant Risk Fund is shared according to ratio agreed by both parties.

Note: * based on the company’s track record, the Mudharabah entitlement or no claim rebate is only paid after the certificate has expired and subject to no claim incurred within 12 months of coverage period.

It is hereby agreed that all Mudharabah payments that are less than Ringgit Malaysia Ten (RM10.00) will be donated to charity funds as determined by the Company and endorsed by the Company’s Shariah Advisory Body. As the participant, should you opt for otherwise, please submit a formal request at any of our branches within three (3) months from the date of declaration, failing which, the Company shall have the right to donate the said amount to the abovementioned charity funds.

Illustration of No Claim Rebate Calculation

The ‘No Claim Rebate’ is not a guaranteed amount paid to qualifying Participants, and its future rate is purely dependent on the claim experience of the risk fund. Based on the Mudharabah Model, the percentage of payout might vary depending on the total portfolio claims incurred for the year. Payment of the rebate will only be made if there are surplus from the Participant Risk Fund. Based on past experience, the no claim rebate has been paid over the last 15 years.

Below is the illustration of the calculation for No Claim Rebate.

Sample 1 – No Claim Rebate Calculation – Motor Takaful

Sample 2 – No Claim Rebate Calculation – Corporate Business

The Products
The following products are based on the Mudharabah business model and eligible for Mudharabah payment after the certificate has expired and subject to no claim incurred within 12 months of coverage period.
1.	General Takaful Products
	Fire & Allied Perils Fire Growing Trees Houseowner’s & Householder’s Long Term Houseowner’s Consequential Loss Industrial All Risks All Risks Burglary Money Fidelity Guarantee Equipment All Risks Hole-in-one Personal Accident Group Personal Accident Motor Employer’s Liability Foreign Workers Compensation Scheme Professional Indemnity Public Liability Workmen’s Compensation Boilers and Pressure Vessels Contractor’s All Risks Electronic Equipment Erection All Risks Machinery Breakdown Machinery Breakdown Loss of Profits Marine Cargo Storage Tanks Marine Hull Civil Engineering Completed Risks Medical Malpractice Product Liability Plate Glass
2.	Family Takaful Product
	Group Term Family Takaful

Frequently Asked Questions

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