1. MicroTakaful ( Islamic Micro Insurance ) Presented by: Muhammad Zubair Mughal Regional Head TAKAFUL PAKISTAN LIMITED

3. Introduction Micro-insurance defined: “ Generally, micro-insurance is viewed just like other normal insurance on small scale for low-income people” MicroTakaful redefined : “ A mechanism to provide Shariah-based protection to the blue collared, under-privileged individuals at an affordable cost ”.

13. Fire Theft Rainfall Floods Agriculture Property Prices Hospitalisation Dental Optical Dread Disease Out-patient Health Surgical Disability Dismemberment Partial Permanent Temporary Total Credit Disability Life Insurance Credit Life Funeral Endowments “ Transition funds” Pensions Education Life Types of MicroTakaful Products

17. Benefits of MicroTakaful

18. Health Marriage Death Prolonged Illness Education of Children Business Failure/Loss of Job Birth of Children Importance of Risk/Economic Stress Potential areas of action

20. Takaful Pakistan’s MicroHealth Products Center for Women Cooperative Development. (CWCD). No of Lives covered 14000 Beneficiaries ( Husband and Wife ) Benefits: Hospitalization Rs. 35,000 Daily Room Limit Rs. 500 Maternity Rs. 5,000 (Sub limit) Rate per family Rs. 570

21. Takaful Pakistan’s MicroHealth Products Ministry of Zakat & Ushar No of Lives covered 100,000,0 Beneficiaries (Husband, Wife and 3 Children's) Benefits: Hospitalization Rs. 150,000 Individual Limit Rs. 25,000 Daily Room Limit Rs. 500 Maternity Rs. 5,000 (Sub limit) Rate per family Rs. 695/-

23. Investment Income Operational Cost of Takaful / ReTakaful Claims & Reserves Surplus (Balance) P A R T I C I P A N T S’ T A K A F U L F U N D (P.T.F.) Mudarib’s Share of PTF’s Investment Income Wakalah Fee Investment Income Management Expense of the Company Profit/Loss S H A R E H O L D E R S’ F U N D (S.H.F.) Participant WAQF Takaful Operator Share Holder Investment by the Company The Takaful Advantage

24. Comparing Takaful to Conventional Insurance Issue Conventional Insurance Takaful Organization Principle Profit for shareholders Mutual for participants Basis Risk Transfer Co-operative risk sharing Value Proposition Profits maximization Affordability and spiritual satisfaction Laws Secular/Regulations Sharia plus regulations Ownership Shareholders Participants Management status Company Management Operator Form of Contract Contract of Sale Cooperative, Islamic contracts of Wakala or Mudarbah with Tabar’ru (contributions) Investments Interest based Sharia compliant, Riba-free Surplus Shareholders’ account Participants’ account

28. What is required? When there is a will, there is way!

29. End of presentation Jazzakallah khair ! [email_address]