MicroTakaful ( Islamic Micro Insurance ) 5 th June, 2015 Manila- Philippines Presented by: Muhammad Zubair Mughal Chief Executive Officer AlHuda CIBE

Contents Introduction Microtakaful defined Historical perspective MicroTakaful schemes in other countries Micro Takaful advantage The way forward Conclusion

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”.

Introduction Cont’d. … MicroTakaful can help people improve. Microtakaful will help them sustain their financial well being. Feeling of togetherness & security. Opens avenues for joint efforts for mutual benefits. Cooperative approach and outlook. Result oriented Society benefits at large.

Global Landscape of Microinsurance Only eighty million out of the world's 2.5 billion poor are currently covered by some form of micro insurance. Only 3% of poor lives are insured in India and China. Only 0.3% of the poor are insured in Africa. In 23 of the poorest 100 countries in the world, there is currently no identified micro insurance activity.

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

Benefits of MicroTakaful

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

Micro Takaful initiatives in Pakistan Coverage to over 100,000 low-cost houses. Synergy with NGOs. Micro Takaful Health Products – CWCD, KKCB & Sungi Students Healthcare/Campus care cover Factory workers’ & Daily wagers Crop Takaful Credit coverage for Islamic Microfinance. Covers tailored for SMEs financing. All above at ‘no profit basis’.

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

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

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

End of presentation Jazzakallah khair !