TEXT: Takaful and conventional insurance at first glance may look similar, in that they both share the objective of protection against financial loss, but when taking a closer look, the differences become apparent.

Surplus sharing among the participants is something that clears out the prime difference between conventional insurance and takaful alongside many features such as Shariah compliant policies, flexible, diverse and comprehensive solutions. Surplus sharing is the unique benefit of Takaful in comparison to conventional insurance, which not only protects policyholders against unforeseen circumstances but also qualifies them for a share in the achieved surplus based on the performance of Participants’ Takaful Fund.

With the increasing demand of risk-managing an interest free solutions, many takaful operators across the globe have started offering the feature of surplus distribution. However, backed by its unprecedented growth and emergence as the leader in its respective field, Salaam Takaful Limited has created history by being the first general takaful company in Pakistan to initiate this process of surplus sharing with its policyholders. This initiative by the organization has gone down in history as the first instance of its nature. Furthermore, it embodies the core essence and organizational values of Salaam Takaful Limited, quite fervently appreciated by the participants.

Surplus Money Distribution doesn’t only involve the participants in the distribution of surplus achieved but also upholds the belief in Shariah compliant solutions and resonates the fact that Takaful indeed is a better alternate to insurance.

Due to superior emphasis on disclosures and transparency, with the essence of always doing the right thing, Salaam Takaful Limited is regular recipient of top accolades from ICAP and ICMAP for its Annual Corporate and Sustainability Reports and has been regularly conferred with Certificate of Merit from South Asian Federation of Accountants (SAFA).

Copyright Business Recorder, 2021