Takaful, ATL (Amana Takaful PLC) announced a payment of surplus to its General Insurance Policy-holders for the third consecutive year.
Following surplus payments of 12.5% and 15% in 2012 and 2013 respectively, the board decided to award a surplus of 10% for 2014, to be distributed among the company's non-claimant policy-holders. Such policy-holders will receive their payments commencing July 3, 2015.
As opposed to conventional insurance, the Takaful concept not only benefits claimants but also takes care of non-claimant policyholders. Such policy-holders receive a proportionate share of the surplus from the risk fund at the end of a defined period. By virtue of being a Takaful participant, one becomes a member of the Risk Pool.
The Risk Pool meets all claims of the membership among other expenses. In the event of a surplus in the Risk Pool, non-claimants among the participants are entitled to a proportionate share of the surplus. Award of surplus is a key distinguishing benefit in the Takaful System.
Composite Gross Written Premium of ATL grew by 10.2% over the previous year, ahead of industry growth and crossing the Rs.2 billion threshold to close at Rs.2.06b. The General Takaful segment achieved a GWP of Rs. 1.38b an increase by 4 % over the previous year, in which the motor class sustained its revenue, while non-motor business improved by 15.9%. Net claims increased to Rs. 636m, 5.5% over 2013. Industry-wide, ATL has a record of a relatively low claims ratio, attributable to astute claims management due to prudent underwriting and risk assessment.
"Notably, in this this pay-out, non-claimants in respect of medical policies too are included. All policyholders will do well to note that this must not be confused with the No Claim Bonus (NCB), which is a feature of a regular Motor insurance policy. Whilst thanking our customers for subscribing to the products and services of ATL, we also look forward to their valuable patronage in the future. We shall make every endeavour to keep rewards coming your way over the years,"said Fazal Ghaffoor, Chief Executive Officer, ATL.
Courtesy: Daily News 6 July 2015