Takaful is a concept of mutual guarantee which is in compliance with Shariah principles. Contributions collected from participants are pooled together to provide for the benefits in the event of losses suffered by any of its members or participants. Hong Leong MSIG Takaful (HLMT) as a Takaful operator is entrusted to properly manage this mutual fund.
Iltizam bi Al-Tabarru'
Refers to the commitment to make Tabarru'.
Refers to a certain portion of the contribution that the participant agrees to donate upon occurrence of events approved by Shariah Committee of HLMT, thus enabling him / her to fulfill the obligation of mutual help and joint guarantee should any of the fellow participants suffer a defined loss where the donation is meant to help others and others' donations are meant to help him / her.
Refers to an arrangement appointing HLMT to manage the overall services provided under the certificate. HLMT will take a portion of the contribution as Wakalah Fee in return of the services rendered.
Refers to a contract in which the participant agrees to reward HLMT for its achievement or good performance in managing the risk fund.
Refers to an interest-free financing provided by HLMT in the event of deficit in the general takaful fund.
Note: Distribution of surplus
Any surplus (i.e. Gross Contribution (net of Wakalah Fee), exceeding claims, claims-related expenses, retakaful, reserves and other deductions as endorsed by the management and Shariah Committee of HLMT) from the general takaful fund may be distributed between eligible participants and HLMT on 50:50 ratio based on Ju'alah.