Debate

Takaful

Although there are some debates among Muslim scholars on the permissibility or otherwise of insurance vis-à-vis the Shariah, the majority of them find the concept of insurance acceptable because of the good it can bring to the society. These scholars however feel that certain modifications need to be made to the insurance contract in order to make it Shariah Compliant.

One fundamental modification is that the premium must be paid on the basis of tabarru’ (or donation). In other words the participants agree to contribute to a common fund to be used to help other participants according to the terms of the takaful contract. With the intention of tabarru’ the insurance transaction becomes valid and permissible from the point of view of Shariah.

In addition to the above modification, the operation of takaful company must also be free from usury (interest) before it can be regarded as Shariah compliant.

Award for eTiQa

Award ceremony held in conjunction with the Second International Takaful Summit 2008

London, England – Etiqa Takaful Berhad was awarded the prestigious Best Takaful Marketing award at the International Takaful Award 2008 held in conjunction with the Second International Takaful Summit 2008 in London on 15 July. The award was presented to Etiqa Takaful, the only Malaysian takaful company nominated in the global 11-category event, by a member of the House of Lords, Lord Mohamed Shiekh who is also the Head of the Muslim Conservative Forum and Mr Mohaned Abdullah from the Middle East Business Forum.

Etiqa Takaful was hailed for its innovative and people-centric marketing approach, making it the outstanding nominee in the best marketing category. “The efforts which were put in to promote the new Etiqa brand, indeed makes it unique amongst the other takaful operators” quipped Mohaned Abdullah, Director of Sales from Middle East Business Forum. Other nominees in the category were Salama (Islamic Arab Insurance Co) from UAE and SABB Takaful (a member of HSBC Group) from Saudi Arabia.