Group Takaful Employee Benefits

Takaful Insurance scheme in Employee Benefits

Group Takaful Employee Benefits insurance in Malaysia is a Shariah-compliant insurance solution for employer and designed to provide protection and financial support to employees and their families, while adhering to Islamic principles.

It is a type of insurance scheme that operates on a cooperative risk-sharing scheme in which employees contribute to a common fund. This fund is used to provide financial benefits in the event of misfortunes such as death, disability, critical illness, or hospitalisation. The insurance plan is managed by a Takaful operator or Takaful insurer, but the risk is shared collectively by all.

Snapshot of Takaful insurance for Employee Benefits

• Ethical financial practices: Takaful does not allow for financial gain at the expense of others.
• Mutual contribution: Members donate a sum of money to a shared pool.
• Tailored contributions: Contributions to the Takaful fund are based on the specific coverage needs, what is being insured, and the duration of the coverage. Each contribution also considers the individual business's situation and risk profile.
• Shared losses: Losses are distributed according to a mutually agreed community pooling system.
• Surplus ownership: Any surplus in the Takaful fund belongs to the policyholders and does not become a profit for the fund.

While insurance is permissible under Shari'ah law in principle, conventional modern-day insurance includes several elements that are considered ‘haram’ which in other words, means ‘prohibited’.