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TAKAFUL is a form of Islamic insurance, adhering to sharia principles, where participants pool their contributions to provide mutual protection against loss or damage, offering coverage for health, life, and general insurance requirements.
The core principles of TAKAFUL include members’ ta’awun (cooperation) for mutual benefit, Tabarru (voluntary contributions) to support those in need, pooling of losses and liabilities, elimination of uncertainty through donation-based subscriptions, avoidance of unfair advantage, and investment in Sharia-compliant funds.
What is Sharia compliance?
Sharia compliance refers to adhering to Islamic principles and laws in business practices and financial transactions, ensuring they align with the ethical and moral standards of Islam.
Sharia compliance ensures that our TAKAFUL products adhere to Islamic principles, promoting ethical and fair practices.
TAKAFUL is inclusive and welcomes both Muslims and non-Muslims, with no religious, racial or background restrictions, making it accessible to all for their insurance needs.
Central Bank of UAE governs all activities of TAKAFUL and related industry.
Conventional insurance is the traditional form of insurance where the insured pays premiums to a company, and in return, the company provides coverage against specified risks. The company pools the premiums to compensate policyholders’ losses. TAKAFUL insurance is an Islamic insurance model based on the principles of cooperation and mutual assistance. Policyholders contribute to a TAKAFUL fund, and in case of a loss, they are entitled to receive compensation from the fund. It operates without interest and avoids investments in haram (forbidden) activities.
TAKAFUL differs significantly from conventional insurance as it adheres to Shariah law, avoiding gharar, maisir, and riba, while sharing the risk among participants. In conventional insurance, the insurer bears the risk associated with the insured.
The parties in a TAKAFUL contract are the Customers and TAKAFUL Company, where the relationship is based on principal and agent for Wakala (Agency), and donors and trustee (Mudarib or Wakil) for Waqf (Endowment).
What is Wakala, Mudarib and Waqf
Wakala: A contract where one party acts as an agent to manage assets on behalf of another, earning a fee
for their services.
Mudarib or Wakil: A partnership contract where one party provides capital, and the other party manages the investment, sharing profits according to agreed terms.
Waqf: A charitable endowment in Islam, where assets are dedicated to specific beneficiaries or purposes,
with the original capital preserved and only its returns used for charitable endeavours.
If I cancel within the year, will I still be covered?
If a customer decides to cancel within the year, their coverage will cease from the date of cancellation.
How will the policy be renewed every year?
The policy renewal process is initiated by the company through a notification sent to the customer 45 days
before the expiration date. Customers will be requested to confirm their renewal decision, and upon confirmation, the policy will be automatically renewed.
What types of products are available at YAS TAKAFUL?
YAS TAKAFUL provides a comprehensive range of TAKAFUL products, including medical, motor, and general insurance solutions. Our offerings are designed to cater to diverse insurance needs, ensuring reliable protection and peace of mind for our valued customers.
Yes, for individuals, UAE residency is required, and businesses must be registered in the UAE to be eligible for our TAKAFUL solutions.
Individuals or businesses can contact our customer service on 800 889 or visit our website www.yastakaful.ae to get more information and start the TAKAFUL coverage process with our dedicated team’s assistance.