Emirates Investment to Sell Islamic Insurance in Pakistan

By Naween A. Mangi

Nov. 30 (Bloomberg) -- Pakistan will license Emirates Investment Group LLC and three other firms next month to sell Islamic insurance, as Muslim consumers increasingly switch to financial services that comply with the Koran.

Emirates Investment will join EFU Life Assurance Ltd., Pakistan's second-largest insurer, in starting to offer Takaful, or Islam-compliant policies, Shafaat Ahmed, executive director at the Securities & Exchange Commission of Pakistan, said.

Insurers are seeking to tap demand for life and non-life policies based on Islamic religious law, known as the Shariah, among the world's 1.5 billion Muslims. Pakistan, where record economic growth is stoking consumer demand, is the most populous Muslim nation after Indonesia, with 97 percent of its 162 million people following the faith.

``Insurance always grows when economies are growing because as more buildings are made and ownership of cars rises, there is a need to insure more,'' Simon Harris, a managing director at Moody's Investors Service in London, said in a telephone interview. ``In a market like Pakistan, where there is a large number of Muslims, there is a real chance for Takaful to become the dominant form of insurance.''

One firm each from the United Arab Emirates and Qatar will also be licensed, Ahmed at the Securities & Exchange Commission, which regulates insurance, said in a phone interview from Islamabad.

Pakistan forecasts the $129 billion economy will expand 7 percent this year, from 6.6 percent growth last year. The economy grew at an average annual pace of 7.5 percent in the last three years, the most since the country's creation in 1947.

Takaful Premiums

Islamic insurance industry premiums worldwide will almost quadruple by 2015, Moody's said in a report on Oct. 10. The world's 250 Islamic insurers will write $7.4 billion in premiums by 2015, up from $2 billion last year, the report said.

Ajmal Bhatty, global head of Takaful for HSBC Holdings Plc's Amanah Islamic finance unit, in April forecast the global market for Takaful may be worth $14 billion by 2015.

Takaful is based on the Koranic principle of mutual assistance. It is similar to mutual insurance in that members are the insurers as well as the insured. Conventional insurance is prohibited under Islamic law because it is judged by Muslim scholars to involve speculation and interest payments, which are forbidden.

Pakistan's 50 conventional insurance companies wrote 47 billion rupees ($773 million) of new premiums in 2005, according to the Securities & Exchange Commission of Pakistan.

Takaful Pakistan Ltd., 51 percent owned by United Arab Emirates-based Emirates Investment Group, plans to open for business next month. It will become the second company to sell Islamic insurance products after Pak Kuwait Takaful Co. Ltd., which opened last year.

Late Starter

``Pakistan is a late starter in Takaful,'' said Jamil Akhtar Khan, chief executive officer of Karachi-based Takaful Pakistan Ltd. ``But there is potential because Takaful will offer people a choice which they don't have at present.'' By 2015, Islamic insurance will account for one-fifth of all policies in Pakistan, he said.

Takaful companies operate in 25 countries including Malaysia, Saudi Arabia and the United Arab Emirates. American International Group Inc., the world's largest insurer, opened an office on Bahrain on Oct. 1 to start selling Islamic non-life insurance.

Demand for Islam-compliant financial products is growing as oil money floods the Persian Gulf. The International Monetary Fund expects oil-producing Arab states, including Saudi Arabia and Kuwait, to earn as much as $500 billion from petroleum sales this year.

Car Insurance

Takaful Pakistan will open as many as 25 branches in 10 cities in the first three years aiming to capture 5 percent of the insurance market, Khan said. More than half the company's business will come from car insurance. Khan will also introduce life, crop and livestock insurance.

The company, which has 300 million rupees of capital, is likely to book revenue of 200 million rupees in the first year, which will grow at an annual rate of 40 percent for the first two years, he said.

``Creating awareness about this alternative form of insurance is a real challenge for the industry,'' Khan said. ``And conventional insurers have been entrenched in this market for up to 70 years and have strong brand names which we have to compete against.''

Limitations faced by Takaful insurers include their inability to buy conventional bonds and many types of non- compliant equities to support their liabilities, Moody's said. All Takaful insurers also face a shortage of Islamic reinsurance, or Retakaful, underwriting capacity.

In Pakistan, Takaful will be helped by the entrenchment of Islamic banking services, Khan said. Islamic banks' share of deposits rose to 2.4 percent in August from 0.5 percent at the end of 2003, according to central bank data. This could grow to 15 percent within the next three years, central bank Governor Shamshad Akhtar said on Sept. 27.

Pak-Qatar Family Takaful AGM okays financial results

ASIF IQBAL - DOHA The third annual general meeting of Pak-Qatar Family Takaful Limited was held here on Monday where shareholders approved the company’s financial statement for the year that ended on December 31, 2008. The shareholders also approved the resolution to reappoint Ford Rhodes Sidat Hyder & Company as auditors for 2009.

Speaking at the meet, Chairman of the Board of Directors Sheikh AIi bin Abdullah al Thani said despite tough political and economical conditions in Pakistan, 2008 witnessed substantial growth in all areas of operations. The company developed offices in 10 major cities across Pakistan and was able to achieve gross revenue of Rupes 170 million.

“In individual family Takaful segment, the company has developed a strong agency structure with manpower of approximately 700 trained consultants. This growth is unprecedented in Pakistan as no other Takaful/insurance company could attain this within its first year of operations,” Sheikh Ali said.

Talking about the company’s expanding portfolios, the chairman said, the company has launched various products designed to meet the needs of various segments of the market. He said the company now has the capability to launch new products and services driven by the consumer needs with speed and quality. “The company is focused on strengthening the individual family takaful business, which is very important for the long term survival and growth of the company. Significant progress was also made to acquire corporate business as a large number of respectable institutions entrusted us for their employee benefit plans and therefore our client list is growing,” Sheikh Ali added.

Regarding the company’s future plans, Sheikh Ali said, in 2009, we would continue to tap the huge untapped potential of the Takaful market in Pakistan. He said during this process the company will be aggressively pursuing the goal of spreading takaful protection among the masses with the enhanced zeal and impetus.

Pak-Qatar Family Takaful to expand into GCC countries

Pak-Qatar Family Takaful is planning to branch out in GCC countries while expanding its operation activities in Pakistan, said firm´s CEO P Ahmed. Unveiling his firm´s products and services at a presentation held at the Al-Dana Club recently Ahmed said Pak-Qatar Family Takaful was planning to open its branches in Qatar, Saudi Arabia, UAE, Bahrain and Kuwait to cater to the needs of non-resident Pakistanis. "We will soon be opening...

Upcoming Takaful company in pakistan (Etiqa Takaful)

The Maybank arm is in the final stage of setting up a family takaful unit in Pakistan, and recently received approval to buy 60 per cent of PT Anugrah Life Insurance

MALAYAN Banking Bhd’s insurance and takaful arm, Etiqa, aims to be a leader in the takaful market by expanding aggressively globally through strategic alliances.

Etiqa has earmarked Pakistan and Indonesia as markets with tremendous potential for takaful products due to the large Muslim population found in both countries.

“We are in the final stage of setting up a family takaful unit in Pakistan with Pak-Kuwait Investment Co Pte Ltd,” said its executive vice-president Mohd Nasir Harun, who heads corporate planning and strategy for international ventures and alliances.

The family takaful business will be operational by third quarter this year, with Maybank Group owning a 30 per cent stake.
Maybank Group had previously worked with Pak-Kuwait Investment to set up the country’s first takaful company in Pakistan, with the former owning a 25 per cent stake.

The group also recently received approval to purchase a 60 per cent stake in Indonesia’s PT Anugrah Life Insurance.

“With approval from Indonesia’s Finance Ministry, our baseline is to set up the life business with special focus on takaful,” said Mohd Nasir, adding that the insurance penetration was low in Indonesia.

The global takaful business is expected to grow to more than RM47 billion by 2015 from roughly RM6 billion now.

“Our strategy for global expansion is to open up in new markets and enhance existing international operations,” Mohd Nasir told Business Times in an interview.

Maybank is also collaborating with a unit of the Islamic Development Bank (IDB) to set up a global takaful holding company, which will create a network of takaful companies worldwide.

“This will be a platform for expansion of the general and family takaful businesses. We want to create synergies with takaful operators globally through sharing of knowledge and experiences,” he said.

He said the feasibility studies would be completed within six months and operations will begin subsequently.

Once the global takaful unit has been established, new expansions would be carried out through this unit.

For financial year ended June 30 2007, the gross premium written by Etiqa stood at RM4 billion while takaful premium was recorded at RM900 million.

It was reported that Etiqa aims to write about RM1.9 billion in takaful premiums for financial year 2008.

PAK KUWAIT TAKAFUL. PROFILE

Pak-Kuwait Takaful Company Limited (PKTCL) is a multinational joint venture partnership between Pakistan, Kuwait, Malaysia,Saudi Arabia and Sri Lanka. With an initial paid up capital of Rs. 250 million and an authorized capital of Rs. 500 million, along with the financial strength and backing of our equity partners, Pak Kuwait Takaful Company Limited is well-poised to launch Takaful operations in an environment of trust and reliability.

The Takaful way of insurance in Pakistan is greatly needed and much awaited as a significant segment of the population desire Shariah-compliance in all their financial dealings. A parallel can be drawn from the immense success of Islamic Banking in Pakistan. It has received such an overwhelming response that even foreign banks operating locally have opened ‘Islamic Window operations’ in order not to be left behind. Not only is the competitive rating and the prospect of surplus sharing inherent in the Takaful concept attractive, but a large section of the population that rightly considers conventional insurance as ‘un-Islamic’ and engage in it only when absolutely necessary, e.g. to comply with statutory or banks’ requirement for taking loans, opening L/Cs etc., will feel inclined to take Takaful - islamic insurance for peace of mind as well as conscience.

Islamic banks currently offering Ijarah and Musharaka/ Mudarabah/ Murabahah products will essentially require Takaful coverage in order to keep all aspects of the transactions/ products truly Islamic. Regrettably, the Islamic banking sector has, up until now, had to resort to the conventional insurance market in the absence of any Takaful company operating in the local market.

PKTCL, emerging in this backdrop, is well positioned to assist all such individuals and organizations. Equipped with the repute and financial standing of its local and foreign sponsors, and with “very strong” (Standard & Poor’s; A.M.Best) Retakaful arrangements firmly in place, our clients may rest assured that we have the strength and ability to pay their claims.

Operated by a team of highly qualified and experienced professionals, and supervised by a distinguished Shariah Supervisory Board of international repute (Chaired by Justice (Retd.) Taqi Usmani), PKTCL will be adopting a proactive approach to quickly fill the gap and introduce Shariah-compliant Takaful products for the benefit of all Muslims living in Pakistan.

Dawood Family Takaful starts Operation In Pakistan.

Dawood Family Takaful Limited is a member company of the renowned First Dawood Group (FDG) of Companies, Pakistan. FDG belongs to the famous Dawood Family of Bantwa, Gujrat, India, which has remained instrumental in the economic development of Pakistan ever since its independence.

Dawood Family Takaful Limited is amongst the pioneers in the field of Family Takaful business in Pakistan. Family Takaful (or Islamic Life Insurance) is a relatively new phenomenon in Pakistan which is regulated by Securities and Exchange Commission of Pakistan. The Company has a vision to be the preferred provider of Islamic financial protection services in Pakistan.

We aim to provide these services based on Islamic values. We strive to help our valued customers/partners by establishing savings and protection funds with a view to provide comfort for their loved ones. The pro-active measures ensure them security and certainty as it provides monetary relief in the event of misfortune, and creates the habit of saving amongst our customers/partners. This, we believe, underlines the importance of our mission.

As a member of First Dawood Group of Companies, Dawood Family Takaful Limited is strongly capitalized with paid-up capital of PKR 750 million to ensure our ability to meet the promises to our customers timely, and to offer assurance of reliability to our business partners.

Under the leadership of a highly respectable competent and experienced management team, the Company is set to pursue its mission vigorously, both domestically and in the international Islamic market as opportunities arise.

In view to remain competitive, we will continue to introduce innovative and market based customer-centric Family Takaful products that would feature distinctly from other protection plans available in the market. We aim to be the leader in setting new service standards notably in the area of claims management, as well as building long-term customer/ partner loyalty.

Pak Qatar Takaful And Gen Takaful posts 170 million rupees Profit.

The Pak-Qatar Family/General Takaful posted gross revenue of Rs170m for the year ended December 31, 2008.

Speaking at the third Annual General Meeting to review the company’s performance and evaluate the financial results, Sheikh AIi bin Abdullah Al Thani, Chairman of Pak-Qatar Family Takaful Limited, said: “Despite tough global economical conditions and its impact on Pakistan, the company witnessed substantial growth in all areas of operations in 2008 in addition to establishing offices in 10 major cities of the country.”

In Individual Family Takaful segment, the company has developed a strong agency structure with manpower of approximately 700 trained Takaful consultants.

“This growth is unprecedented in the country since no other Takaful/lnsurance company could attain this within its first year of operations,” he said.

The company has launched various products designed to meet the needs of various segments of the market and the company now has the capability to launch new products and services driven by the consumer needs.

After laying a strong foundation through a committed and professional management team together with the implementation of state-of-the-art business system, the company is focusing on strengthening the individual family takaful business, which is very important for the long term survival and growth of the company, Sheikh AIi bin Abdullah said.

“Significant progress was also made to acquire corporate business. A number of respectable institutions entrusted us for their employee benefit plans and the client list is growing,” he said.

“During 2009, we will continue to tap the huge untapped potential of the Takaful market in Pakistan. During this process we will be aggressively pursuing our goal of spreading takaful protection among the masses with the enhanced zeal and impetus.”

He added that in 2008 growth was achieved without any spending on advertisement and the management did a good job to make the company’s presence felt in the market as well as among competitors. “But now is the time to support management with advertisement and sales promotions. We will be making a corporate launch of the company in the 2nd quarter of this year,” Sheikh Ali bin Abdullah said.

--THE PENINSULA

Lloyd of London eyes ISLAMIC REINSURANCE.

By Cecilia Valente
Lloyd's of London is setting up an Islamic re-insurance syndicate with a capacity of up to 200 million pounds to write Islamic compliant reinsurance globally, a PriceWaterhouseCoopers executive said on Tuesday.

Mohammad Khan, director for Islamic insurance, or takaful, at PwC, said the Lloyd's syndicate would include mainly financial institutions and to a lesser extent individual investors. It would become operational between the end of 2009 and the beginning of next year.

Financial consultant and accounting firm PwC is advising the financial group on the syndicate, he said at the Reuters Islamic Banking and Finance Summit in London.

Lloyd's of London was not immediately available to comment.

Islamic insurance is a tiny industry in Europe despite a 20-million strong Muslim population. Its development, and the growth of takaful more widely, will rely to a large extent on the strengthening of Islamic compliant re-insurance, Khan said.

Khan said the first Lloyd's syndicate would inevitably pave the way for more, bringing liquidity to the market for insurance which complies with Sharia law.

"Once you get one syndicate you get others, that is not a problem. The Lloyd's model is about sharing (risks and rewards). If you think about it, the model lends itself quite neatly to Sharia because it is mutual," he said.

Lloyd's has been here before. In 2006 Lloyd's insurer Creechurch Underwriting Limited announced the formation of a syndicate to be managed in accordance with Islamic principles, but Khan said no business was written, because the insurer was subsequently taken over.

Khan said the new syndicate would raise between 50 million and 200 million pounds.

"I do not think Lloyd's is just looking at one (syndicate), it would not make sense... Lloyd's is quite serious about this," he said.

Under takaful, the risk and reward are shared between the customer and insurer, while in conventional insurance the insurer takes on all the risk for a premium.

Takaful investment strategies must also abide by Sharia law, which excludes sectors like alcohol as well as instruments such as interest bearing investments or over-leveraged companies.

At the session of the Reuters Islamic Finance Summit in Dubai, Noor Takaful's managing director Ahmed al-Jana said the emerging industry could grow at 30-40 percent annually in the next three to five years as more people switch from conventional to Islamic insurance.

Noor Takaful is a unit of Dubai's Noor Islamic Bank.

--LONDON (Reuters)

Takaful Ikhlas eyes RM2mil premiums from big bike product

JOHOR BARU: Takaful Ikhlas Sdn Bhd, a subsidiary of MNRB Holdings Bhd, is targeting RM2mil in premiums from its new product – Ikhlas Big Bike Takaful – in the financial year ending March 31, 2010.

President and chief executive officer Syed Moheeb Syed Kamarulzaman said the company had decided to target the product at big bike riders as there was renewed interest in biking in Malaysia following the economic crisis.

“Statistics from the Road Transport Department show there are about 9,000 big bikes in the country and we want to tap the market,’’ Syed Moheeb told a press conference after the product launch yesterday.

He said the Takaful insurance coverage would be opened to owners of superbikes of 500cc and above. Under its comprehensive plan, bike owners will be compensated in the event of loss of life or damage to the machines due to accident or theft.

Syed Moheeb said policy-holders would also enjoy assistance in case of any breakdown without additional charges unlike conventional motorbike insurance coverage.

“Our survey showed that most of these big bike owners are businessmen and they need specially-tailored coverage for themselves and their machines,’’ he said, adding that contrary to popular belief, these bikers were well disciplined while on the road.

--Thestaronline

Al-hussain Opens Al-aqeelah Takaful Insurance company.

Damascus - Minister of Finance Dr. Mohammad al-Hussein opened on Wednesday, the first takaful (cooperative) insurance company in Syria with a capital of SP 2 billion.

In a statement to the press, al-Hussein affirmed that al-Aqeelah will provide a new dimension to the Syrian insurance sector due to its various services that meet the needs of a wide cross-section of the Syrian society, which include insurance services operating according to Islamic Sharia.

He noted that co-operative insurance companies amount to 30% of global insurance markets, estimating that such companies will achieve similar numbers in Syria, adding that the Insurance Supervision Committee agreed to license two new co-operative insurance companies for work in Syria, which are al-Nour and al-Amana.

The Minister pointed out to sectors that were included in mandatory insurance such as hospitals, labs, x-ray clinics, schools and universities, which were included due to the importance of these sectors and their responsibilities and the care for those who work in them and join them.

In turn, Director General of al-Aqeelah Firas al-Azem said the main activity of the company is co-operative insurance that complies with the laws of Islamic Sharia.

Regarding the company's services, al-Azem said al-Aqeelah signed a contract with GlobeMed International for managing medical costs, which will contract health service providers.

He also noted that profits from investments in Syrian Islamic banks amounted to SP 53.7 million.

CEO of al-Aqeelah Abdul-Hamid al-Dushti said the decision to invest in Syria was due to their belief and care for the future of the promising Syrian economy and their confidence in the opportunities that are provided by the investment environment in Syria, in addition to their desire to participate actively in the economic development process and meet the needs of the Syrian society.

The Syrian insurance market includes 13 insurance companies, two of which are co-operative insurance companies while ten are traditional insurance companies, in addition to the Syrian General Insurance Establishment.

By H. Sabbagh / Mazen

--SANA (Syria Arab News Agency)

Nexus Expands Into Qatar and Lanches Takaful products.

Nexus, one of the largest IFA firms in the Middle East, has opened a Qatar office following regulatory approval from the Financial Centre Regulatory Authority.

The development comes as the company, formerly the Middle Eastern distribution arm of insurer Zurich, rolls out a Takaful insurance product for firms designed to provide coverage against a range of business risks.

The Business Protector product, which has been developed in partnership with Dubai’s Salama Islamic Arab Insurance Company, includes cover for property, interruption to business, employee compensation, among a number of other areas.

Mahmoud Nodjoumi, chief executive of Nexus, said: “[Business Protector] is part of our joint efforts to accelerate the development of Takaful and insurance solutions and expand the services that we provide to our clients. The prospects for increasing the insurance penetration rate in the regional economies are clearly positive; and with the market reach and operational sophistication of the product, we are confident that the single, comprehensive Business Protector policy will help regional businesses function seamlessly.”

Rafiq Halani, general Manager – general and health at Salama, said the policy, which provides cover ranging from AED 500,000 to 30m, provided comprehensive cover.
“What makes the Business Protector a complete plan is that it covers the entire gamut of insurance requirements across various sectors – from media to industrial to food and beverages,” he noted.

--International Adviser

Pak Qatar Takaful Provide Takaful Sign Agreement with Mezan Bank..

Meezan Bank Ltd and Pak-Qatar Family Takaful Ltd (PQFTL) signed an agreement under which all customers of Meezan Bank’s Housing Finance (Easy Home) would be provided with Shari’ah-Compliant Life Takaful Coverage. President and chief executive officer Meezan Bank, Irfan Siddiqui and Chief executive officer Pak-Qatar Family Takaful, P Ahmed signed the agreement. According to the accord, all housing finance customers of Meezan Bank would be provided comprehensive Takaful that would cover not only life but also accidental and natural disability.

--(Daily Times) staff report

Pan Asia Bank ties up with AMANA TAKAFUL INSURANCE for BACATAKAFUL.

Seen here exchanging the MOU from left, Aashiq Aminuddin, Shafraz Asnavi, Reyaz Jeffrey ( CEO- Family Takaful ), Kimarli Fernando ( CEO- Pan Asia Bank), Rizan Mansoor and Kamoor Sourjah ( DGM-Business Dev.-Pan Asia Bank)

Pan Asia Bank and Amana Takaful Insurance have collaborated to offer Bancatakaful, under which, Takaful life policies will be offered to all Pan Asia Bank customers through the Pan Asia Bank branch network. Undoubtedly, this is yet another first from Amana Takaful Insurance & Pan Asia Bank, who are rapidly moving towards the pinnacle of excellence in finance sector in Sri Lanka.

What is Takaful?

Takaful is an insurance system through which the participants donate part of their contribution, which are used to pay claims for damages suffered by some of the participants while balances goes into an investment fund. Amana Takaful's role is to manage the insurance operations and invest insurance contributions in line with Islamic principles. Takaful is a novel way of insurance that is based firmly on values of taking care of each other through trust, equality and ethics. Takaful solutions are on par with conventional insurance solutions but differ fundamentally on the operations of the funds. When you obtain a Takaful Policy, part of your contributions (premiums) are pooled into a fund known as Participants Tabarru (Donation) Funds (PTF) and the balance to a Participants Investment Fund (PIF). PTF is invested in accordance with Shariah and is used to pay claims. PIF is solely for the participants' savings and investment, PIF funds are invested on principles of Al Mudarabah, which is a commercial profit sharing contract between providers of funds and the entrepreneur who actually conducts the business. After a specific period if the participant needs financial assistance he or she could withdraw a considerable percentage of the PIF. Policy holder has the privilege in cancelling the policy at any given time and is entitled to withdraw the PIF along with the profit, subject to cancellation fee. Ms. Kimarli Fernando Director/CEO of Pan Asia Bank stated ,'' Pan Asia Bank is delighted to be the first bank in Sri Lanka to collaborate with Amana Takaful to initiate a premier service to its customers in the arena of Takaful insurance, for the entire family. This partnership will open new doors, propelling the banking industry to stratospheric heights. She also added having got valuable feedback from its Muslim customers for the need for Sharia compliant products, Pan Asia Bank as a "Bank of all communities", is keen to meet the needs of its customers. Bancatakaful is such product and it will be followed other Islamic banking products which we plan to introduce in the future and will be available not only to Muslim customers but to all our valued customers. 'Commenting on this historic occasion, Mr. Reyaz Jeffrey GM/CEO of Amana Takaful Life said, 'Amana Takaful as the leader in Takaful is very happy to be associated with Pan Asia Bank on this unique tie up which will enable Amana Takaful to reach out to a wider audience and for Pan Asia Bank to offer a unique value addition to their financial products offerings'.Pan Asia Bank has 33 branches island wide and Amana Takaful Insurance has 18 branches in Sri Lanka along with a fully fledged operation in Maldives.

--FinancialTimes

Dubai Islamic Bank expands products portfolio with Al lslami takaful.

Dubai Islamic Bank (DIB) announced the launch of Al Islami Takaful Programme, its Sharia-compliant savings plan with Takaful benefits, designed to meet the unique needs of customers looking for Islamic financial planning solutions.

The Al Islami Takaful Programme is the latest addition to DIB’s suite of wealth management solutions, which include savings schemes, mutual funds, and other structured products. This programme combines savings and investment plans with a personal Takaful protection, creating a unique product that offers two key benefits – savings and protection – within the same plan.

The Al Islami Takaful Programme has been developed specifically for the needs of DIB customers by FWU - a global leader in Takaful expertise, with Dubai Islamic Insurance & Reinsurance Company (Aman) as the Wakeel.

Highlighting the advantages of the new product Dr. Adnan Chilwan, Chief of Retail and Business Banking, Dubai Islamic Bank, said: “The launch of the Al Islami Takaful Programme is a key milestone in the execution of our retail banking growth strategy, as it signifies the introduction of another Islamic retail product offering savings, investment and protection to the bank’s customers.This is further proof of DIB’s continued commitment to provide attractive financial planning solutions to different customer segments, in line with their needs and resources.”

The Al Islami Takaful Programme offers a range of investment options to suit different risk profiles, with flexible payment options – starting from monthly contributions to one-time lump sum contribution – and flexible maturity periods. Depending on their age, customers can choose a plan term from 7 to 30 years (for regular savings) and 3 to 30 years (for lump sum investment). The product also offers the flexibility to increase/decrease contributions and make partial withdrawals at any time during the term.

The Al Islami Takaful Programme is invested in Sharia-compliant funds that seek to generate attractive returns for participants in the programme. Returns on their contributions made into the investments will depend on the performance of the funds.

Dr. Chilwan added: “This programme gives customers the flexibility to switch between investment options at any time, make partial withdrawals and early encashments or even continue your investment plan after maturity. The annual solidarity 'Takaful' fund surpluses are distributed among all participants, proportionate to their contribution. Additionally, the programme also offers customers the opportunity to appoint up to four beneficiaries with an option to change the beneficiaries throughout the term of the investment, enabling complete peace of mind and protection to loved ones.”

Prospective customers can just walk into any DIB branch and meet a Customer Service Officer, who can provide advice on the right investment plan and structure of the Al Islami Takaful programme, to suit their individual requirements.

--Al Bawaba

Takaful ikhlas lanches hajj saving plans..

Takaful Ikhlas Sdn Bhd (Takaful IKHLAS) has launched its latest product, the Ikhlas Hajj Savings Takaful, in Kuching in a ceremony officiated by Chief Minister Tan Sri Haji Abdul Taib Mahmud.

The Ikhlas Hajj Savings Takaful is a protection as well as investment savings plan designed to assist and fulfil the needs of those planning to perform the haj.

"The cost of performing the haj is increasing and those planning to visit the holy land are faced with a rise in the cost of air-fare, accommodation, transport and health services.

"The Ikhlas Hajj Savings Takaful is aptly designed to assist those planning to perform the haj through takaful protection services as well as savings investment which are more secure," said Takaful IKHLAS president and chief executive officer Datuk Syed Moheeb Syed Kamarulzaman.

The Ikhlas Hajj Savings Takaful has a forecast contribution target of RM3 million for the financial year 2009/2010. Takaful IKHLAS is confident that the product is capable of enhancing its revenue contribution in the years to come.

Among the benefits offered through the Ikhlas Hajj Savings Takaful plan are coverage for permanent and total loss of ability and long term critical diseases. Customers will also enjoy delivery, part cash withdrawal and maturity benefits.

Age limit for participating in the Ikhlas Hajj Savings Takaful is from 30 days to 60 years. Further information can be obtained from www.takaful-ikhlas.com.my.

--BERNAMA

Takaful provides upbeat on premium income

Takaful premium income is expected to contribute 20% to HSBC Amanah Malaysia Bhd’s revenue by 2011, according to HSBC Amanah Takaful (Malaysia) Sdn Bhd chief executive officer Zainudin Ishak.

“At the moment our contribution to the group is insignificant,’’ he told reporters at briefing on a survey conducted by HSBC Insurance (Asia Pacific) Holdings Ltd yesterday.

HSBC Amanah Takaful was registered in August 2006 and the company had recently turned profitable, Zainudin said, adding that new regular premium income at the takaful operator had doubled to RM30mil from RM15mil recorded six months ago.

Zainudin said he expected the “momentum” to continue for the rest of the year, despite concerns that the economic slowdown would limit consumers’ demand for insurance products.

The survey by HSBC Insurance showed that two of the most specific long-term wealth aspirations for Malaysians are related to financial security in retirement and education funding for children.

One of the obstacles to achieve this, however, is the “lack of investment instruments with good returns” in the current market conditions.

Zainudin said HSBC Amanah Takaful intended to leverage on the strength of the group’s brand name, and the fact that HSBC had been in Malaysia for the past 125 years.

“HSBC is a trusted brand name in Malaysia and we have various takaful products to cater to local needs,’’ he said.

The new products were being developed for the Malaysian market through the group’s global expertise in Islamic finance, Zainudin added.

HSBC Amanah is the Islamic banking arm of HSBC Bank Malaysia Bhd. It has four stand-alone branches, coupled with the parent bank’s 40 outlets across the coun

FUTURE OF TAKAFUL INDUSTRY IN PAKISTAN.

The third annual general meeting of Pak-Qatar Family and General Takaful companies was recently held in Doha. Sheikh Ali bin Abdullah Thani J. Al-Thani, Chairman of the Board of PQFTL and PQGTL, praised the performance of the two companies.

“The future of Takaful in Pakistan looks promising and we will continue to support and provide technical assistance to promote it in the country,” he added. “We believe Pak-Qatar Takaful has the financial strength and expertise to safeguard investments and meet the long-term investment needs of the people in Pakistan. We are rapidly expanding our distribution network in order to achieve our vision of providing financial protection to everyone, through Takaful,” he added.

“Pak-Qatar Takaful companies have managed to acquire significant corporate business in Pakistan,” he claimed. “We are currently present in major Pakistani cities and draw strength from hundreds of committed and experienced personnel in the country.” P. Ahmed, CEO PQFTL, M. Vaqaruddin, CEO PQGTL, Izzat al-Rashid, MD Qatar Islamic Insurance Company, and Abdulbasit al-Shaibei, CEO Qatar International Islamic Bank, attended the meeting. staff report

--Daily Times

Pak Qatar Takaful Provide Takaful To Mezan Bank..

Meezan Bank Ltd and Pak-Qatar Family Takaful Ltd have signed an agreement whereby all customers of Meezan Banks Housing Finance (Easy Home) will be provided with Shariah-Compliant Life Takaful Coverage. Irfan Siddiqui President and CEO Meezan Bank Ltd and P. Ahmed CEO Pak-Qatar Family Takaful Ltd. signed the Takaful (Islamic insurance) Agreement at a ceremony on Tuesday.
According to the agreement, all housing finance customers of Meezan Bank will be provided comprehensive Takaful that will cover not only life but also accidental and natural disability. Moreover, the premium for the first year will be paid by the bank which is to be adjusted later.

The insurance penetration in Pakistan is only 0.3 per cent of its total GDP, which means just 10 to 15pc families are opting out this facility, while in developing countries 60 to 70pc families go for this.



Speaking on the occasion, President and CEO Meezan Bank Ltd. Irfan Siddiqui said that Meezan Bank has always focused on coming up with Halal Riba-free products and innovative facilities for its customers and the Takaful arrangement with PQFTL is another step in the direction of making Islamic Banking the banking of first choice.

CEO Pak-Qatar Family Takaful Ltd said that they were delighted to sign the Takaful agreement with the countrys pioneering Islamic bank, which will pave the way for numerous benefits for its customers. He said that Pak-Qatar Family Takaful is always looking for ways to provide value added products to the people of Pakistan. By joining hands with Meezan Bank we would be able to reach out to many people who would otherwise not have had the benefit of a customer centric and Shariah-compliant risk mitigation tool, he added.

Ahmed said that Pak-Qatar Family Takaful has the financial strength and expertise to safeguard investments and meet the long-term investment needs of the people in Pakistan. He further said that they are rapidly expanding their distribution network in order to achieve their vision of providing financial protection to everyone through Takaful.

AMAN ISLAMIC INSURANCE WINS BEST TAKAFUL OPERATOR AWARD..... IN 2008

Aman Insurance, the region’s leading insurance company, has been awarded the ‘BEST TAKAFUL OPERATOR OF THE YEAR 2009’ for the second year running by Policy Magazine at the Middle East Insurance Awards Ceremony at Raffles, Dubai.

Commenting on the award, Mr. Hussein Al Meeza, Managing Director and CEO of AMAN, said:
‘’This year’s award highlights our on going commitment to serve the local and regional insurance market and was in recognition of our continual compliance with Sharia’a law and our commitment to develop the Takaful Market. Winning the ‘BEST TAKAFUL OPERATOR OF THE YEAR 2009’ for the second year in a row was a real honour for Aman. We are extremely proud of our achievements this year and look forward to continuing to exceed the needs and expectations of our shareholders throughout the region.”

Aman Insurance was awarded Best Takaful Operator of the year based on its development strategy, product innovation, response to customer needs and quality of service. The award was received by Mr. Iqbal Mankani, Chief Operating Officer of Aman.

As a relatively young company, Aman has established itself as one of the leading local and regional Takaful Company with strategic alliances throughout the Arab World. Aman thanks its customers and partners for the confidence reposed on Aman and assures them it would continue to excel in its service to the community.

--Middle East Events