FAQs

1. What is Takaful?
   Takaful is an Islamic Insurance based on the principle of mutual assistance and Tabarru’ (voluntary contribution), where risk is shared collectively by a group of Participants, who by paying contributions to a common fund, agree to jointly guarantee themselves against loss or damage to any one of them as defined in the pact.
2. What is Haram?
   Haram means anything that is forbidden by Islamic law.
3.  What is Family Takaful?
   Family Takaful is a term used in Takaful industry, an equivalent for Life Insurance.
4.  What is the business model adopted by ATIB?
   We are adopting the Wakalah Model (ie: the Agency Model).
5.  What is Wakalah?
   Wakalah is a contract between the Takaful operator and Participant where the Participant authorizes the Takaful operator to manage the fund on his/her behalf. In return, the Takaful operator charges the Participant a certain Wakalah fee for managing the fund.
6.  What is Wakalah Fee?
   Wakalah Fee is the upfront fee deducted as a percentage of contribution before the contribution is allocated to buy units in the investment fund.
7.  What is Tabarru’?
   Tabarru’ is the Cost of Takaful (COT), determined at the beginning of each certificate month by multiplying the Face Amount as shown in the Certificate Information Page by the Takaful rate applicable, as determined by the Takaful operator. The COT is based on the gender, attained age, class rating and other rating factors of the Person Covered. For standard lives with standard rating factors, the annual rate will not exceed the maximum rate set out in the Certificate; this annual rate is applicable only to the Basic Certificate.
8.  What is Underwriting Surplus?
   Underwriting Surplus is the surplus arising from the Tabarru’ Fund after deduction of claims payable and reserves. The Underwriting Surplus, if any, is calculated and distributed annually with the Participant Investment Fund.
9.  Is the contribution amount (premium) considered as a donation?
   Yes. A portion of the contribution amount will be allocated into the Participant’s Risk Fund (PRF) as donations to help and care for the Participants who are faced with an unfortunate incident.
10.  If there is an Underwriting Surplus, how much will the Participants get?
    The allocation is 70% to the Takaful operator and 30% to the Participants.
11.  How are ATIB’s products Shariah compliant?
    We segregate the Participant’s Funds from Shareholders' Fund and redistribute the surplus and investment profit back to the Participant, as per agreed ratio. We do not invest in anything that is haram (all activities are Shariah compliant). We do not borrow, lend or enter into any financial transactions that are not Islamic. All our products are approved by our Shariah Committee.