TAKAFUL

SUBMITTED TO: Sir Muneer Ahmed

SUBMITTED BY: ANUM ELAHI (10528) SAYEM HUSSAIN (9919) MAAZ BIN SHAHOOD (10308)

IQRA UNIVERSITY DEFENCE VIEW SHAHEED MILLAT ROAD (EXT) KARACHI 75500

DATE: 30-04-2011

Table of Content
S.No 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2 2.1 2.2 2.3 3 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.2 3.2.1 3.2.2 3.2.3 3.2.4 4 5 Topic INTRODUCTION Shariah Board Vision Mission Ambition Board of Directors Shariah Adviser Management Profile Sponsors Paid-up Capital PORTFOLIO Fatwa on Takaful Profile of Shariah Board Shariah Compliant Certificate PRODUCTS Indivisual Motors Firw Marine Miscellinous Corporate Property Motor/ Accident Marine Health NETWORKS REMARKS Page. No

Introduction
Takaful Pakistan Limited was incorporated in June, 2006 with its registered head-office in Karachi. With an authorized capital of Rs. 300 million, all fully paid-up, the Company is sponsored by reputable financial institutions both local and foreign. Managed by a team of qualified and experienced professionals and supervised by a distinguished Shariah Advisory Board of international repute, Takaful Pakistan Limited has the capacity to underwrite risks in all avenues of General Insurance namely, Property (Fire & Engineering), Marine, Motor, Liabilities, bonds & guarantees, etc. In addition, the Company has the expertise and arrangements with overseas ReTakaful operators enabling it to offer comprehensive coverage for large infra-structure projects, specialized risks and umbrella/blanket covers specifically tailored for Islamic banking operations as well as for large corporate groups. The Company currently operates with a network of branches in fifteen major cities in the country. Takaful Pakistan Limited aims to lead the contemporary insurance/Takaful market ensuring that its operations are riba-free and are in line with the cardinal Islamic principles. Takaful Pakistan Limited also offers a unique option of return of surplus to its clients whereby any balance remaining in its Waqf-Fund shall be returned to the Participants in proportion to their original contributed amount. Takaful Pakistan Management manages, as Takaful Operator, the general takaful operations for the participants of its Participants Takaful Fund (PTF) 40% of gross contribution as Wakala fee to meet the general and administrative expenses of the company. Takaful Pakistan Management also manages the participants investment as Modarib and charges 25% of the general takaful investment income earned by the PTF as Modarib share. Rating: Takaful Pakistan Limited has been assigned BBB+ rating with STABLE outlook by JCR-VIS. It is currently the only rated Takaful Company in the country and one of the few amongst contemporary insurance companies that have been assigned a ratings. Sponsors: Takaful Pakistan is sponsored by the following institutions:

 House Building Finance Corporation The largest house financing organization in the public sector. Al-Buhaira National Insurance Company (U.A.E.)-One of the leading insurance companies of U.A.E. Al Baraka Bank (Pakistan) limited. A dedicated Islamic bank offering Shariah-approved financial products. Sitara Chemical Industries Limited the market-leader in Chlor-Alkali products in Pakistan; committed to developing Islamic financial products. Arif Habib Securities Limited -The fastest growing financial services provider in Pakistan. Mal-Al Khaleej (U.A.E.) One of the companies of the prestigious Al-Rajhi Group. Emirates Investments Group LLC (U.A.E.)-A leading investment company of the United Arab Emirates. Trust Securities & Brokerage Limited (TSBL) - A leading corporate brokerage and financial advisory house based in Pakistan.

Shariah Board:
The Companys Shariah board comprises of the following: Mufti Mohammad Mohibul Haq (Member & Nominee of Justice (R) Muhammad Taqi Usmani) Mufti Dr. Khalil Ahmad Aazami (Member) Mufti Imtiaz Alam (Member) As a new emerging venture, Takaful Pakistan Limited strives to be the trend-setter in the contemporary insurance market in the country by providing a viable Islamic alternative to the conventional insurance. The Company intends to maintain its services par excellence backed by efficient clients servicing and an innovative approach by its dedicated team of professionals; thereby providing the best possible coverage for the protection of risks for its valued clients. As an emerging venture, Takaful Pakistan Limited strives to be the trend-setter in the contemporary insurance market in the country by providing a viable Islamic alternative to the conventional insurance. The Company intends to maintain its services par excellence backed by efficient clients servicing and an innovative approach by its dedicated team of professionals; thereby providing the best possible coverage for the protection of risks for its valued clients.

VISION
To spread Takaful benefits beyond borders, beyond Time!

MISSION

To deliver Takaful as a viable alternative to conventional insurance. To become the top-of-the-mind Takaful brand for our Participants in terms of competitiveness, service standards and business ethics

To give value for money to our shareholders and make Takaful Pakistan their prized asset.

To become an ideal organization for our employees that encourages them to achieve selfactualization and growth.

To contribute positively and proactively for the welfare of our society at large as well as for the preservation of our environment.

AMBITION
To be a role model for the contemporary insurance industry and eventually bring it in conformity with the Shariah compliant Takaful mode of insurance.

Board of Directors
1. Mr. Syed Tariq Husain (Chairman) 2. Mr. Syed Azhar A. Jaffri 3. Mr. Syed Khawaja Maaz Khairuddin 4. Mr. Muhammad Adrees 5. Mr. Tahir Naz Siddiqui 6. Mr. Ahmed Zafar 7. Mr. Shafqaat Ahmed

Shariah Advisor:
Mufti Mohammad Mohibul Haq (Member) Mufti Dr. Khalil Ahmad Aazami (Member) Mufti Imtiaz Alam (Member)

As a new emerging venture, Takaful Pakistan Limited strives to be the trend-setter in the contemporary insurance market in the country by providing a viable Islamic alternative to the conventional insurance. The Company intends to maintain its services par excellence backed by efficient clients servicing and an innovative approach by its dedicated team of professionals; thereby providing the best possible coverage for the protection of risks for its valued clients.

Management Profile:
Muhammad Ashraf Ali Siddiqui Professional Diploma in Insurance (PII, Karachi) Associate of Chartered Insurance Institute, London D.G.M Operations

Ashraf has a diversified working experience with top insurance companies in Pakistan. He started off as a Business Development Officer for Adamjee Insurance in 1999 and thereafter worked there as an internee of the Pakistan Insurance Institute gaining hands-on experience in the underwriting and claims departments of the various classes of business.He subsequently handled the Fire underwriting and Risk Management areas of EFU Generals Corporate Division. Ashraf then joined the New Jubilee Insurance as Manager in the Corporate Division at its Head Office. In that capacity he was coordinating in the all underwriting and clients servicing matters in addition to facilitating Facultative Reinsurance placement of specialized risks. He then briefly held an appointment in Shaheen Insurance as Head of Claims in their Karachi Branch and contributed his humble bit in streamlining the claims procedures. Ashraf joined Pak-Kuwait Takaful Company Limited in 2004 and was a member of the core team that set-up the various functions of the company.

Now as D.G.M Operations of Takaful Pakistan Limited, Ashraf has been actively involved in all areas related to the formation of the Company and addressing the various teething issues. Muhammad Umer FCMA Head of Finance and Company Secretary Muhammad Umer is a fellow member of Institute of Cost & Management Accounts of Pakistan (I.C.M.A.P). Umer holds 15 years of extensive experience in the fields of Finance and Accounts of both manufacturing and services sector and has served both national as well as multinational companies. In the Insurance Sector, he worked in a senior management position in Guardians Royal Exchange and was actively involved in planning and budgeting functions and overseas reporting. Besides Insurance Sector he has worked in Textile, Distribution and sugar Industries as a senior member of core management team.

Sponsors:
House Building Finance Corporation The largest house financing organization in the public sector. Al-Buhaira National Insurance Company (U.A.E.)-One of the leading insurance companies of U.A.E. Al Baraka Bank (Pakistan) limited a dedicated Islamic bank offering Shariah-approved financial products. Sitara Chemical Industries Limited the market-leader in Chlor-Alkali products in Pakistan; committed to developing Islamic financial products. Arif Habib Securities Limited -The fastest growing financial services provider in Pakistan. Mal-Al Khaleej (U.A.E.) One of the companies of the prestigious Al-Rajhi Group. Emirates Investments Group LLC (U.A.E.)-A leading investment company of the United Arab Emirates. Trust Securities & Brokerage Limited (TSBL) - A leading corporate brokerage and financial advisory house based in Pakistan.

Paid up Capital:
The authorized and paid up Share Capital of the Company as on December 31, 2010 stands at Rs. 300 million devided into 30 million share of Rs. 10 each in the following manner: S. No. Name of Sponsor 1 House Building Finance Coprporation 2 Al-Bhuaira National Insurance Co. 3 Al Baraka Bank (Pakistan) Limited 4 Sitara Chemical Industries Limited 5 Arif Habib Corporation Limited 6 Mal Al Khaleej Investment LLC 7 Emirates Investment Group LLC 8 Trust Securities & Brokerage Ltd Total Number of Shares 8,700,000 5,100,000 5,100,000 3,000,000 3,000,000 2,550,000 2,000,000 550,000 30,000,000 Holding% 29% 17% 17% 10% 10% 8.5% 6.7% 1.5% 100%

Portfolio
Fatwa on Takaful:
The Islamic Fiqh Academy emanating from the Organization of Islamic conference, meeting in its Second Session in Jeddah, Saudi Arabia, from 10 to 16 Rabiul Thani, 1406 H (corresponding to 22-28 December, 1985) issued a resolution which in summary stated the following:

After reviewing the presentations made by participating scholars during the session on the subject of Insurance/Re-insurance;

And after discussing the same; And after closely examining all types and forms of insurance and deeply examining the basic principles upon which they are founded and their goals and objectives;

And having looked into what has been issued by the Fiqh Academies and other institutions in this regard;

Resolves 1. The commercial insurance contractis prohibited (Haraam) according to the Shariah. 2. The alternative contract which conforms to the principle of Islamic dealings is the contract of cooperative insurance (Takaful), which is founded on the basis of charitable donation and Shariah compliant dealings. Muslim jurists therefore concluded that:

Insurance should be based on the principles of mutuality and cooperation. Insurance products should be founded on the basis of Tabarru, an Arabic noun meaning donation, gift, and contribution.

The insurance company must conduct all its affairs in line with the Shariah The participants mutually contribute to the same fund for the purpose of mutual indemnity in case of risk and harm.

Profile of Shariah Board:

Takaful Pakistan Limited aims to be the trend setter for the entire industry by providing high standard Shariah-compliant Takaful products to its clients backed by efficient clients servicing. Takaful Pakistan Limited believes in transparency and Shariah Compliance in its operations. For this purpose, Takaful Pakistan Limited has acquired the services of renowned Islamic scholars to form a Shariah Supervisory Board that supervises all the operational activities of Takaful Pakistan Limited and ensures that Shariah guidelines are being scrupulously adhered to by the Company in all its activities. The Board members are not only experts in Islamic jurisprudence but have also been playing an important role in facilitating the development and growth of the Islamic financial system in Pakistan.

The Shariah Supervisory Board (SSB) of Takaful Pakistan Limited comprises of: 1. Mufti Mohammad Mohibul Haq (Member) 2. Mufti Dr. Khalil Ahmad Aazami (Member) 3. Mufti Imtiaz Alam (Member) 1. Mufti Mohammad Mohibul Haq - Member

A prominent young religious scholar, educated in both western as well as traditional academic disciplines. Having accomplished his O and A levels from The City School, Karachi, Mufti Mohib-ul-Haq graduated from Jamia Darul Uloom in Dars-e-Nizami and Takhassus fil Ifta (Specialization in Islamic Rulings). He is presently also on the faculty of Darul Uloom and Centre for Islamic Economics. He has served as a Shariah Advisor of Bank-AlHabib (Islamic Banking) and is currently also a Shariah Advisor to ABN AMRO Bank (Islamic Banking).

2. Mufti Dr. Khalil Ahmad Aazami - Member

An extremely enlightened and distinguished graduate of Jamia Darul-Uloom Karachi, Mufti Dr. Khalil Aazami has practiced under one of the countrys most seasoned Scholars, Mufti-e-Azam (Grand Mufti) of Pakistan, Muhammad Rafi Usmani. He has completed his Alimiyyah and

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Takhassus fil Fiqh (Specialization in Islamic Jurisprudence) from Darul Uloom and is presently serving as a Shariah Advisor to Bank AlFalah (Islamic Banking). Mufti Khalil is also a faculty Member of Darul Uloom and Centre for Islamic Economics, Karachi.

3. Mufti Imtiaz Alam - Member

Mufti Imtiaz Alam is an extremely distinguished graduate of Jamia Darul-Uloom Karachi. He studied at Jamiah Darul-Uloom Karachi for eleven years, since 1998 to 2008, where he received Shahadat Al-Aalmiyyah (Master's degree in Islamic Studies and Arabic) and completed AlTakhassus Fil Ifta (specialization in Islamic Jurisprudence). In Al-Takhassus Fil Ifta, he worked on Fatawa Mufti Azam (Grand Mufti) of Pakistan, Mufti Mohammad Shafi Usmani (Rahimahullah), regarding WAQF which is the basic essence of Takaful model practices in Pakistan and South Africa.

Besides Islamic Education, he is also well-versed with the western sciences having a degree in B.Com from University of Karachi and in-progress Masters in Economics from the same.

Mufti Imtiaz has special interest in the promotion of Islamic Finance particularly in the facilitation of conversion of conventional setups into Shariah-based organizations. Our Shariah Supervisory Board consists of trustworthy scholars who are highly qualified to issue fatwas on financial transactions and who have vast experience and knowledge in modern day commercial dealings and transactions. The Boards fatwas and resolutions are binding upon us and its members are independent, having the freedom to give opinions on proposed contracts and transactions. The role of the Shariah Supervisory Board is concurrent with that of the financial institution itself in the sense that it has been formed from the moment the Company was incorporated, and that it shall provide continued supervision and checking of contracts, transactions and procedures. This has been expressly provided for in the Articles of Association of the Company.

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Shariah Compliance Certificate:

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Products
Individual:

Motors
Private Car Comprehensive Takaful Full Comprehensive coverage (as more specifically defined in our standard Private Car comprehensive policy) against accidental loss and/or damage and/or theft of the motor vehicle, including legal liability of the participant, to Third Parties arising out of the use of the motor vehicle. The Policy is also extended to cover the risk of Terrorism to the extent of the full sum covered of the vehicle. Motorcycle Comprehensive Takaful Full Comprehensive coverage (as more specifically defined in our standard Motorcycle comprehensive policy) against accidental loss and/or damage and/or theft of the motorcycle, including legal liability of the participant to Third Parties arising out of the use of the motorcycle. The Policy is also extended to cover the risk of Terrorism to the extent of the full sum covered of the motorcycle. Motorcycle Third Party Takaful This is the basic plan that meets legal motor insurance/takaful requirements under Motor Vehicle Act 1939. The policy covers legal liability of the participant to Third Parties arising out of the use of the motor vehicle. For Third Party liability this means it covers the third party only who may be injured or killed in an accident and whose vehicle or property may be damaged. It does not cover damage to the Participants/Policy holders own vehicle or property or any injuries or death to the Participant.

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Fire
Householder's Comprehensive Takaful This policy is specifically designed to cover home and contents (including jewellery & cash) against the risk of fire, earthquake, explosion, lightning, thunderbolt, flood, typhoon, burglary, bursting of pipes, aircraft damage, damage to mirrors etc. The policy may extend to cover personal accident, loss of rent, liabilities under workmens compensation act, legal liability to third party property damage and/or bodily damage, personal document etc.

Marine
Marine Cargo Policy Cargo interests are exposed to numerous financial risks in the course of their business of imports, exports as well as movement of goods within the country. The transportation of cargo is invariably carried in conjunction with marine insurance coverage as no one can afford to take the risk of leaving his cargo uninsured. Our Marine Cargo cover protects your goods against the various risks involved during transit, for all types of cargo transported by the various modes of conveyance such as sea, air, land and parcel post, from warehouse to warehouse. The coverage can be provided on the following basis: VOYAGE BASIS: This policy is valid for a single voyage or transit. The policy is issued before the voyage starts. The coverage will cease immediately on completion of the voyage. ANNUAL BASIS: In case of frequent shipments it will be cumbersome, if not altogether difficult, to need issuance of a Marine Cargo policy each and every time. To solve this problem, a single policy is issued to cover all the shipments during the year. Each shipment affected during the policy period is endorsed therein by means of a declaration of shipment. The policy is normally issued for a 12-months period.

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The coverage of policy is based on the type of cargo. We provide Takaful coverage for all kinds of commodities including, but not limited to, steel products, bulk oil cargoes, containerized products etc. This policy covers various type of cargo transported by sea, air as well as by land conveyance. Extent of cover varies from a limited TLO to an all risk comprehensive cover in accordance with the internationally recognized Institute Cargo Clause A, B or C.

Miscellaneous
Burglary Takaful This policy provides coverage loss and/or damage to the participants property whilst within the business premises against the risks of Theft/Burglary consequent upon forcible and violence entry. The policy also covers damage to the premises resulting from attempted Theft/Burglary. The policy is however issued only in conjunction with fire and allied perils policy. Personal Accident Takaful Coverage This is a 24 hours worldwide coverage providing compensation in case of death or loss of limb or bodily injury to the covered resulting in temporary or permanent disablement, partial disablement or total disablement arising out of an accident. The standard coverage may also be extended to cover medical expenses resulting out of such accident.

Corporate:

Property:
Fire and Allied perils Household comprehensive Shop owners Fire consequential loss

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Motor/ Accident:
Motor Miscellaneous and general Takaful

Marine:
Marine Cargo Policy Marine Hull Policy Marine Advance consequential loss policy

Health:
General Health Policy

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Networks
Head Office: Takaful Pakistan Limited 6th floor, Business Centre, Plot No 19-1-A, Block -6, P.E.C.H.S., Shahrah-e-Faisal, Karachi Pakistan. UAN: +92 - 21-111-875-111 PABX: +92 - 213-437 3171-80 Fax: +92 - 213-437 3195-6 Website: www.takaful.com.pk Email: info@takaful.com.pk Branch Offices: Lahore: 130-E/1, First Floor, Main Boulevard Gulberg III, LHAORE. (Pakistan) Tel : 042-5785162-6 UAN: 042-111-875-111 Fax : 042-5716790 Peshawar: Office # TF-28-29, 3rd Floor, Deens Trade Centre, PESHAWAR-25000. (Pakistan) TEL: 091-5250115 UAN: 091-111-875-111 Fax : 091-5250116

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Remarks

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