Are takaful products on BJAK Shariah-compliant?

A motor product is takaful when its contract is structured on mutual risk sharing (ta'awun) and voluntary donation (tabarru'), rather than on the transfer of risk to a company in exchange for a premium.

In practice that means:

• Contributions are pooled. Participants pay into a shared fund, part of it as tabarru', a donation into the risk pool
• Claims are paid from the pool. Covered losses are met from the shared fund, not from the operator's own capital
• The operator manages rather than owns. It administers the fund as agent, under a defined fee arrangement
• Investments are restricted. Fund assets are placed only in Shariah-compliant instruments
• The structure avoids riba (interest), gharar (excessive uncertainty) and maisir (gambling)
• Surplus may return to participants, subject to the operator's terms and the fund's performance

The underwriting Takaful operator designs, certifies, and manages the Takaful fund under the strict oversight of its internal Shariah Committee or Advisers. These products are governed under Bank Negara Malaysia's Shariah Governance Policy Document and the Islamic Financial Services Act 2013.

No. BJAK is an Approved Financial Adviser and Approved Islamic Financial Adviser under Bank Negara Malaysia. That approval covers how BJAK conducts advisory and distribution business. It is not a Shariah certification, and it does not extend to the products displayed.

BJAK does not:

• Underwrite risk
• Issue the takaful certificate
• Grant or hold any Shariah certification
• Appoint or sit on any Shariah Committee
• Determine whether a product is Shariah-compliant

The Shariah status of a product belongs to the takaful operator that issues it.

Three things to check, in order.

1. The operator's registered name. Each quote names the provider. Match it against BNM's list of licensed takaful operators - the register uses full registered names, so check the whole name rather than the brand.

2. The product type on the quote. Takaful and conventional products appear in the same comparison.

3. The issued document. A takaful product produces a Takaful Certificate, naming the takaful operator as the issuing entity.

Before you pay, review the Product Disclosure Sheet. It is the operator's own document and sets out coverage, exclusions, excess and fees.

For Shariah-specific questions - the contract model used, how the fund is structured, how surplus is treated, where assets are invested, or the operator's Shariah Committee and its approvals - contact the takaful operator directly. They designed the product and their Shariah Committee governs it, so their official disclosures are the authoritative source.

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