Research Analyst
Apr 9 - 15, 2012

Pak-Qatar Takaful Ltd. is the pioneer of Takaful and regarded as a technology-driven Shariah-compliant company providing need-based and cost-effective Takaful solutions in Pakistan. The company is providing financial protection through Takaful to everyone supported by some of the strongest financial institutions in the state of Qatar such as Qatar Islamic Insurance Company (QIIC), Qatar International Islamic Bank (QIIB), Qatar Islamic Bank (QIB), Qatar National Bank (QNB), the Amwal Group, Masraf Al-Rayan and Munich-based FWU AG.

Pak-Qatar is the first dedicated Takaful group starting with both Family and General Takaful operations in the country. The paid-up capital of Pak-Qatar Family is in excess of Rs600 million.

The company is further strengthened by its Re-Takaful arrangements with Munich-Re, Hannover Re and Takaful-Re. It is well-positioned to ensure exemplary client-service following heavy investments in procurement of state-of-the art technology from Malaysia and in SAP ERP solutions. The company has strategic Banca Takaful alliance with FWU AG.

In 2009, the company won the best family Takaful award by 1st National Achievers Award, Karachi and the best use of technology award by the Islamic business and finance awards, UAE.


Group Family Takaful provides protection to participant employees in the event of death or disability, so that a multiple of that employee's yearly salary can be paid to his/her family or dependants to ease their financial difficulties.

The basic coverage can also be enhanced by adding coverage of risks that are arising out of a natural calamity or by unpredictable accidents. The plan is either contributory or sponsored by the employer/company as a yearly renewable agreement. The benefit provides payment of the agreed coverage amount in the event of death due to any cause of a participant employee. Along with this plan, employees can be provided with any of the additional coverage like group accidental death family Takaful, group permanent partial disability family Takaful, group permanent total disability family Takaful, group temporary total disability family Takaful, group natural disability family Takaful and group accidental medical expense family Takaful. The Healthcare Takaful scheme was designed to cater the clients' medical needs. It covers hospitalization due to any reason, major medical expenses, maternity as well as day to day medical needs. In addition to the above, it also covers expenses incurred for treatment outside the hospital or expenses that arise because of day care procedures.


In General Takaful, the fire and property Takaful provides a vast coverage against all main risks to make customer's life and business secure. The fire takaful provides compensation to the individual participant or firm in the event of damage to property caused by fire, lightning, or explosion.

Pak Qatar has extended customized coverage for diversified industrial sector companies as per their needs. Other major covers include property all risk Takaful, home Takaful, and comprehensive machinery Takaful.

The company's motor Takaful provides maximum coverage against theft, accidental damage, and third party liability with innovative features and hassle free pre- and post-Takaful processing. The Motor Takaful has features like SM-based car tracking, competitive pricing, proficient claim staff, dedicated claim hotlines, limited claim settlement time and credit facility at all major workshops.

In the general takaful, the Hajj & Umrah travel Takaful has been tailored to offer customers round the clock personal accident Takaful cover that fits customers needs by providing their families a comprehensive coverage for accidental death and all the emergencies, accidental disablement, accidental medical treatments, emergency evacuation and loss of baggage and passport. The Engineering Takaful provides comprehensive and adequate protection against loss or damages with respect to constructions plants, be they equipment, machinery or property. In general takaful, the Liability Takaful provides coverage against legal liability to pay compensation to the third party.


The Takaful market is still in a formative stage and market projections estimate growth rates between 15 and 20 per cent over the next 10 years, reaching US$7.4 billion in premium by 2015. With challenges around customer service and productivity, technology can enable this growing industry through its formative stage.

Pakistan is among the top 10 most populous nations in the world. This makes it a very fertile market for Takaful, one with some interesting challenges. Takaful is the latest wave in financial protection. Pakistan saw its first Takaful operator, in the general side, in 2006. Since then another two operators in general and two in family have entered the picture.

Takaful is not just another tool for risk mitigation and financial protection. Rather, it is a system, which works as a source of good for those that use it and the community at large. Tools like these are critical for developing nations especially those seeing rapid economic growth. Increasing personal debt, the widening divide between the haves and have-nots, and other such issues regularly affect those in rapidly growing developing nations. Pakistan is one of those countries.

To understand this by comparing it to another nation, which shares many traits with Pakistan, India has an insurance penetration of 4.8 per cent, against Pakistan's 0.8 per cent, and its insurance density is US$38.4, against Pakistan's US$5.9. These values make it very clear that there exists a significant gap in Pakistan for financial protection tools.


During the past few years, there have been significant developments in the world of Islamic banking and finance. The Takaful industry has evolved from regional to global scale. Pak-Qatar needs to cater to the growing needs of both the Muslim and non-Muslim customers in Pakistan.