Claims Procedure in General Takaful

Abstract

A claim is an application by a participant to seek indemnity for losses provide for under a Takaful contract. This is the step needed to make a claim, which the participant is able to exercise as his rights under the contract, and all efforts must be taken to ensure that such rights are duly honoured. The Takaful company functions as fund manager on behalf of the participant. Thus, the Takaful operator possesses the great responsibility of managing the participant’s money. They are the body that ensures that all applications made by participants are free from Gharar or any element of gambling, which are against Islamic principles and values. Any Takaful operator needs to minimise risks that will lead to failure in managing or upholding the trust of others. Therefore, processing claims is a key issue, one that requires further attention by the Takaful company in order to maintain its value to customers.

It is acknowledged that, the idea of this chapter/product is significantly contributed by the practices/experiences/thoughts of Bank Negara, Takaful Malaysia, Takaful Ikhlas, Takaful Nasional, Etiqa Takaful, IBFIM, IIUM, MII and others (Malaysia).