Welcome to Takaful Malaysia

Frequent Asked Questions (FAQ)

1.	How is takaful and conventional insurance similar?
	Both takaful and conventional insurance provide protection in the event of unforeseen events and contributions must be made to start the coverage. Insurance is the transfer of risk by an individual or an organisation, i.e. your business, to the insurance company. You or your organisation will thus be known as the policy owner. The insurance company receives payment in the form of premium and will compensate you in the event of covered losses or damages sustained by you. Takaful provides protection based on Shariah principles. By contributing a sum of money to a common takaful fund in the form of contribution ('Tabarru'), you will undertake a contract (aqad) to become one of the participants by agreeing to mutually help each other, should any of the participants suffer a defined loss. Both insurance and takaful have similar basic principles. For instance, the insured must have a legitimate financial interest in the risk you are insuring, meaning you must suffer a financial loss when the insured event occurs. Your insurance or takaful contract is a contract of utmost good faith (trust). Thus, you as the certificate owner need to disclose all material information required. If any of the relevant material facts are not disclosed, the certificate may be invalid and you will not be protected against any loss or damage.

2.	Are there any differences between takaful and conventional insurance?
	Unlike conventional insurance, which risk is transferred from the insured to the insurer, the takaful insurance mutual risk is shared amongst the participants. Takaful operations are based upon the principles of mutuality, whereby each participant makes a donation to a takaful fund. In the event of its loss, the participant will receive the amount of its claim. All investments managed by the takaful operator are made in accordance to the Shariah principles. These funds are managed by the takaful operator on behalf of the participants, which will be beneficial to the participants. On top of that, unlike conventional insurance, the participants retain an ownership interest in the takaful fund. Contributions from the participants are later invested into a 'halal' or Shariah compliant funds to derive investment income. In the event when the fund generates a surplus, it is then shared among the participants (and, in some cases with the takaful operator). This creates a 'win-win' situation to all participants. The takaful operator will also have a Shariah Advisory Board who will monitor the activities of the operations in order to ensure that it's Shariah-compliant. This involves consideration of all aspects of the operations. Takaful and conventional insurance companies share the same objective which is to provide protection to you, your loved ones and your valuable possessions.

3.	What do you mean by Mudharabah and how does one receive such benefits?
	Currently, Takaful Malaysia is the FIRST and ONLY Takaful Company in the country that offers an additional 15% no claims rebate or Mudharabah payment to all its participants in the General and selected Family Takaful Products, i.e. the participant will receive their rebate should there be no claims incurred during the coverage period. 'Mudharabah' means 'profit or surplus' sharing.

4.	When can I receive the Mudharabah payment?
	The Mudharabah entitlement is only paid after the certificate has expired provided no claims incurred during coverage period.

5.	How many distribution channels are there is Takaful Malaysia?
	At Takaful Malaysia, our products offerings for both family and general businesses are distributed across 6 channels - namely the retail and corporate agency forces, banca takaful, corporate direct, brokers, treasury business channels.

6.	Where can I purchase my takaful plan?
	You may visit any of Takaful Malaysia's branch offices located nationwide or you may call our toll free number 1300 8 TAKAFUL (825 2385), email csu@takaful-malaysia.com.my.

7.	What are the investment-linked funds available in Takaful Malaysia?
	The Shariah approved investment-linked funds offered by Takaful Malaysia include Ihsan Balanced Fund, Irad Dividend Fund, Ihfaz Equity Index Fund, Istifad Blue Chips Fund and Ittihad Growth Fund.

8.	How do I pay for my contributions?
	Facilities of paying contributions to Takaful Malaysia include: Cash Cheque Credit card (Takaful Malaysia's branches) Credit card standing instruction Auto debit from Maybank Account Bank standing instruction at Bank Islam or BSN Online banking via www.bankislam.com.my or www.maybank.com.my Salary deduction. Please take note that the payment method for each takaful plan may vary. You are advised to read your certificate carefully on the payment method.

9.	How do I file for a claim?
	You are advised to contact Takaful Malaysia at our toll free number 1300-8-TAKAFUL (825 2385), email: csu@takaful-malaysia.com.my or visit any of our branch office to fill up the claim form.

10.	Is there any time limit for me to notify my claims to the insurance company?
	It is advisable that you should notify the Company immediately.

11.	When can I receive my claim payment after submission of my claim forms and relevant documents?
	Claim payments are payable within 14 workings days upon receiving the completed supporting documents from you.

12.	Where do I renew my plan?
	Renewal can be done at your nearest Takaful Malaysia branch office or contact your agent.

13.	What will happen if I do not pay my contribution on time?
	Should there be insufficient funds accumulated in your account, your certificate will lapse.

14.	How do I obtain a physical copy of my contract?
	Takaful Malaysia will mail the takaful certificate to you. Alternatively, you can contact our customer service unit:1300-8-TAKAFUL (825 2385) weekdays between 8.30am to 5.30pm.

15.	Does the nominee/beneficiary have to pay any tax on this coverage?
	The proceeds amount is normally tax-free. For more information, please consult your tax advisor.

16.	Can a non-Muslim participate in any of Takaful Malaysia's plans?
	Yes, Takaful Malaysia's plans are catered to 1Malaysia. All Malaysians can participate in our plans subject to meeting the underwriting requirements.

17.	What happen if there is a change in my mailing/home address?
	You should notify us at our toll free number 1300-8-TAKAFUL (825 2385) weekdays between 8.30am to 5.30pm, email csu@takaful-malaysia.com.my immediately for any change of address so that we can keep you informed of important information. You should also notify us of any change in the address(es) of your nominee(s) in order to facilitate payment of claims.