TAKAFUL Brunei Am Sdn Bhd (TBA) recently revised its Hibah rates by as much as 10 per cent. This shows an increase from the previous rate, which was only six per cent.
Hibah is part of the Wakalah Concept’s contractual agreement of returns given to customers of TBA, as a sign of appreciation for their support.
The Hibah comes from the underwriting surplus, which in turn is derived from the Tabarruk (Takaful fund), after the deduction of any claims and other expenses.
This underwriting surplus will be given as a Hibah, or bonus gift, upon renewal, with the condition that no previous claims were made by the participant.
The distribution of Hibah is based on the consistency of the Takaful funds as a result of efficient underwriting, claims and asset management practices by TBA. It is permissible under Syariah principles, with certain terms and conditions.
TBA began distributing Hibah in 2011, when the surplus rate was not annually fixed and was subject to the health of the Takaful fund.
The Wakalah concept is therefore a contractual agreement where TBA is appointed as a representative to manage the contributions, investments and distribution of the Tabarruk fund on the participants’ behalf.
At TBA, the Hibah is obtained by deducting the amount from the customers’ Takaful contributions during their next renewal. Should the customers fail to renew their Takaful certificates, then their Hibah shall be donated to the Takaful fund.
Additionally, TBA does not share any of the surpluses, which are completely distributed to the participants under certain terms and conditions.