Chief Executive Officer of the Takaful Pakistan Limited, Capt. M Jamil Akhtar Khan has said the prospects of Islamic Insurance (Takaful) are bright in Pakistan as it is getting popular even in non-Muslim areas due to additional benefits it offers to the policy holders.
Islamic Insurance is not mere risk coverage but investment as the policy holder is owner of the pool of the fund created by his premium and invested in Shariah compliant instrument to generate income. This income is used for paying out the claims and the surplus profits is distributed among the participants (Policy holders) according tot heir contribution (premium) at the end of the year. 
In an exclusive interview with APP here, Capt Jamil said the additional benefits are basic charm for the non-Muslims to opt for Takaful as it gives peace of mind as you take part in a collective welfare task besides all the incentives and benefits which are available to the policy holders under conventional Insurance policy. The pact between different participants (Policy holders) binds them to provide or share risk of each other among the members or participants of the Fund.
Why do we malign our hard earned Hilal money by buying a conventional Insurance policy (interest based instrument) while one can have all the benefits of conventional insurance policy in Islamic Takaful and in addition get your share of surplus profit? he asked. Responding to a question, Jamil Akhtar Khan explained the working of the Takaful saying that the company creates the Waqf Fund by donating initial seed money. This money no longer belongs to share holders (Insurance Company/Takaful operator) but becomes separate legal entity.
The shareholders undertake that if need arises, they will provide Qard-e-Hasna to the Waqf but will retain the right to recover any such Qard as receivables from the Waqf. Takaful operator works as a Mutawalli of the Waqf. Operator receives and deposits contribution (Premium) into the Fund and pays claims from it. The operator protects the Fund against risk exposure arranging Re-Takaful and building up reserves out of the Fund amount, he said. In addition, the Operator generates income for the Fund by investing the Fund money prudently in Shariah-compliant investment securities. Underwriting is carried out on behalf of the Fund and therefore all profits or losses belong to the Fund participants. He said the participants (Policy holders) are the beneficiaries of the Fund and apart from the claim amount, all surplus accruing in the Fund is returned to them on a pro-rata basis.
Talking about the Takaful, he said it is a system of Islamic insurance based on principle of Tafawun (mutual assistance) and Tabarru (voluntary contribution), where the risk is shared collectively and voluntary by the group. It is a pact among a group of members who agree to jointly guarantee themselves against loss of damage to any one of them as defined in the pact. He said his company Takaful Pakistan Limited operates on the basis of shared responsibility, brotherhood, solidarity and mutual cooperation, which has the capacity to underwrite risks in all avenues of General Insurance namely Property (Fire & Engineering), Marine, Motor, Liabilities like Personal Accident Takaful Policy; Bon Voyage-Travel Accident Takaful Policy; Humsafar-Hajj & umra travel Takaful Policy; Mobile Phone Takaful Policy; Money Takaful Policy; Fidelity Gurantee Takaful Policy; Burglary Takaful Policy; all risks contents Takaful Policy; third party liability Takaful Policy; Products liability Takaful Policy; workmans liability Takaful Policy; workmans compensation Takaful Policy and health Takaful.
About various misconceptions about the insurance, Capt. M Jamil Akhtar
Khan said some people believe that the risk protection is against Tawakul (total dependence upon Allah). Two Hadiths shows the importance of insurance and meanings of Tawakul, he said adding one is Al-Tirmidhi, No 1981.
One day Prophet Muhammad PBUH asked a Bedouin why he leaves his camel untied? He replied, I put my trust in Allah (SWT). The Prophet (PBUH) then said, tie your camel first, and then put your trust in Allah(TWT) Another hadith in Sahih al-Bukhari, narrated by Amir bin Saad bin Abi Waqqas describes prophet Muhammad (PBUH) as saying: Verily, it is better for you to leave your offspring (heirs) wealthy than to leave them poor asking others for help.
Islamic insurance, he said is sharing of the risk by participants not transferring the risk from policy holder to the Insurance Company. Moreover it is sharing of risk with group saving as you or your heirs get the benefits and part of surplus profit out of the investment made from the Fund and owned by the participants.
He said the surplus profit (the money invested in Shariah compliant instruments out of pool) belongs to members and is returned to the policy holders without a condition of continuing the Policy for another year. The conventional No claim Bonus is in addition to the returning of surplus profit to the policy holders, he explained.
The operations of Takaful Pakistan have been certified as 100 per cent Shariah-Compliant and added, Our management is fully committed and dedicated to implementing the fatwas and guidelines provided by our Shariah Supervisory Board. He said the Shariah Supervisory Board includes Prof.Dr. Mahmood Ahmad
Ghazi (Chairman), Prof. Dr. Anis Ahmad (Vice Chairman), Mufti Mohammad Mohib ul Haq (member Nominee of Justice (Retd) Muhammad Taqi Usmani), and Mufti Khalil Ahmad Azami (Member). We have one additional member on the board as the legal required strength of the board is three, he added.
Takaful Pakistan incorporated on June 2, 2006 with an initial paid up capital of Rs 200 million is a Joint venture sponsored by the House Building Finance Corporation; Emirates Globl Islamic bank Limited; Arif Habib Securities Limited; Sitara Chemical Industries Limited; Emirates Investments Group (UAE) and Al-Buhaira National