Takaful is a Shariah compliant way of safeguarding yourself and your family against future financial losses. A takaful product assists participants to share their risk based on cooperation, brotherhood, mutuality, and solidarity for common good.

Key components of Takaful are as follows:

• Individuals in the community come together on a common platform and contribute into a Waqf Fund, operated by a Takaful Operator (us), to protect themselves against future financial losses.
• The Takaful Operator acts as an ‘administrator’ of the Waqf Fund and carries out its role in the form of a Wakeel (Manager).
• Any participant who suffers or incurs a financial loss is compensated from the Waqf Fund.
• At the end of every year, any excess amount (Surplus) left in the Waqf Fund after paying off claims and meeting expenses may be distributed amongst the participants as per the advice of the Shariah Advisor and the Appointed Actuary.

EFU Hemayah Takaful has set up Shariah compliant unit linked funds for its Family Takaful Business. Managed by in-house investment experts, these funds are designed to adjust investment strategies based on economic conditions and market opportunities. We cater to the varying risk appetites of our Takaful participants through the following options:

1. EFU Takaful Growth Fund: Focuses on maximizing capital growth by investing in a portfolio spread across a wide range of investments
2. EFU Takaful Aggressive Fund: Aims to provide superior Shariah-compliant risk-adjusted returns, with a high-risk profile.
3. EFU Takaful Conservative Fund: Aims to provide stable, Shariah-compliant returns with a low-risk profile.

EFU Hemayah Takaful follows the Wakalah Waqf Family Takaful Model, which is the approved Takaful model by Shari’ah scholars in Pakistan. The foundation of this model is based on the Shari’ah concept of Waqf which means “to submit any property from one’s possession to that of Allah (swt) to benefit mankind”. The following pictorial representation summarizes how your Takaful membership operates:

As mentioned above, the Participants enter a Takaful scheme by contributing to the Participants Takaful Fund and obtaining membership of it. This membership gives them access to a risk mitigation tool, which provides them the Takaful claims in a time of need. The second level of benefit available in a savings Takaful plan is the investment element.

EFU Hemayah Takaful has onboarded both Hannover Re and Munich Re as reinsurers for its Takaful operations, two of the largest reinsurers globally. Hannover Re, headquartered in Germany, operates in over 150 countries, offering a wide range of Shariah-compliant solutions. Munich Re operates its Retakaful division from Kuala Lumpur, using a pure Wakala model.

Hannover Re’s Strength in the Retakaful Business:

• Hannover Re leverages global reinsurance expertise with a strong understanding of Shariah-compliant insurance to offer tailored Retakaful solutions for Islamic markets.
• They provide flexibility through both Wakala (fee-based) and Mudarabah (profit-sharing) models, giving clients the ability to choose the most appropriate model for their business strategy.
• Backed by high credit ratings (typically AA), Hannover Re ensures financial stability and reliable coverage of large risks.
• They are pioneers in offering Shariah-compliant catastrophe and large risk reinsurance solutions.
• A dedicated Shariah Advisory Board oversees operations, ensuring strict adherence to Islamic principles.

Munich Re’s Strength in Retakaful Business:

• They operate a global pool covering worldwide family Retakaful for optimal risk diversification. A sophisticated annual surplus distribution method ensures company-specific and intergenerational equity.
• Clients profit from a unique Shari’ah-compliant pooling concept for large risks.
• Through them, Takaful operators get access to a truly 100% Shari’ah-compliant supply chain.
• They do not use conventional retrocession. This ensures that ceded takaful business does not finally end up on the books of conventional reinsurance companies.
• They do not accept conventional life insurance business in their Retakaful pool, giving their clients peace of mind that their pool is free of haram elements.

They are the first Retakaful operator worldwide to offer a fully Shari’ah-compliant catastrophe excess-of-loss cover.

The Shari’ah Advisor of EFU Family Takaful is Mufti Muhammad Ibrahim Essa, a prominent scholar from Jamiah Darul Uloom Karachi specializing in Islamic Finance and Takaful. Mufti Ibrahim has completed his Darse Nizami (Masters in Quran and Sunnah) and Takhassus Fil Fiqh (Specialization in Islamic Jurisprudence) from Jamiah Darul Uloom Karachi under the close supervision of Mufti Muhammad Taqi Usmani.

Mufti Ibrahim is also a teacher and member of Darul Ifta, Darul Uloom Karachi (from September 2006 to date). He has the unique experience of carrying out the Shariah Compliance audit of all existing takaful companies in Pakistan. He is also the Shariah consultant of leading charitable organizations for Zakat matters.

Takaful offers a unique feature of Surplus Sharing to Participants in addition to risk mitigation benefits. By contributing Tabarru (donation) into the Participants Takaful Fund (Waqf Fund/PTF), the Participant is entitled to a share of fund surplus, if any. At the end of each year, EFU Life will determine the surplus in the Waqf fund based on the method approved by the Shariah Advisor and appointed actuary. On the advice of Shariah Advisor and Appointed Actuary:

• A part of the surplus may be distributed to the Participants as Bonus Units through additional unit allocation in the Participants Investment Account (PIA),
• The surplus, or a part of it, may also be retained to strengthen the PTF,
• The remainder (a smaller proportion) may be allocated for charitable purposes.

All the certifications and recognitions EFU Life – Window Takaful Operations has received from reputed Islamic Institutes such as Darul Ullum and Jamia Binnoria are as follows:

• Fatwa by Darul Ullum
• Fatwa by Dar-ul-Ifta Imdad-ul-Uloom (Punjab)
• Fatwa by Jamia Binnoria
• Certificate by Darul Ullum
• Fatwa by Jamia Ehtishamia

Certifications acknowledging EFU Hemayah Takaful operations and processes are compliant of all aspects of Shariah, signed by our Shari’ah Advisor Mufti Muhammad Ibrahim Essa, are listed below:

• Certificate of Shariah Compliance
• Wakala-Waqf Model
• Participant Takaful Fund Policies
  
• Waqf Deed
• Shariah Certificates - Products