Insurance and Takaful

In Malaysia, we have the option to choose either Conventional Insurance or Takaful Protection. Both are available in the market.
Basically, insurance is a contract between a customer and an insurance company based on the payment made by the customer as a premium payment where in return the company provides a guarantee of compensation for specified loss, illness, or death.

Premium is referring to the payment made by the customer to the insurance company for the insurance coverage. It is called Contribution for Takaful Protection.

Takaful is an Islamic Insurance concept which operated based on the rules and regulations of Islamic Law. Every insurance company has Board of Shariah which will monitor to ensure that the rules and regulations are in compliance with the Islamic Law.

Both Insurance and Takaful are governed by Bank Negara Malaysia.