60.1K

Verified Solution

Link Copied!

Higher insurance, Takaful penetration in Malaysia this year: PruBSN KUALA LUMPUR: Prudential BSN Takaful Bhd (PruBSN) expects higher insurance and takaful penetration among Malaysians this year backed by its newly launched protection plan, BSN Takaful Sakinah. PruBSN chief executive officer Wan Saifulrizal Wan Ismail said the BSN Takaful Sakinah was introduced as "The First Protection Plan" to help the community to alleviate financial difficulties of loved ones in the event of demise of the person covered. "It is crucial for individuals to have a life protection plan that keeps them secure in case of unforeseen incidents. With this new protection plan jointly launched with BSN, we are on track with our mission to provide more Malaysians with affordable and accessible financial protection," Wan Saifulrizal said at the virtual launch of BSN Takaful Sakinah today. BSN Takaful Sakinah is a joint effort between PruBSN and Bank Simpanan Nasional (BSN) to provide affordable and accessible protection for more Malaysians to help them ease their financial burden in times of need. BSN chief executive officer Jay Khairil Jeremy Abdullah said the new protection plan was very much in line with the bank's vision of ensuring no Malaysian were left behind. FBA/PFS2253/AUGUST21 CONFIDENTIAL/3 "It has been a priority of BSN to give all Malaysians the opportunity to enjoy a better life through an extensive network and various services. This plan is mainly targeted at more participation from the B40 community to allow them to obtain takaful coverage at affordable contribution rates," he said. BSN Takaful Sakinah is a yearly renewable plan with 12 months coverage. It is a Shariah-compliant product that requires the participant to have a BSN account to sign-up. The plan offers protections for both natural and accidental deaths with Khairat benefits of up to RM3,500. The plan is open to all those between the age of 19 and 50. There are three protection plan options with a yearly payment of either RM55, RM110 or RM165 which will be deducted from the participant's bank account. Coverage claims for natural deaths can range from RM10,000 to RM30,000 whereas accidental deaths can be up to RM60,000. (Sources: New Straits Times, May 7, 2021) Based on the article;

a.Explain the objective of BSN Takaful Sakinah. b. BSN Takaful Sakinah focus on the participation of B40 people in Malaysia. From your point of view, briefly discuss who falls under B40 and why they focus on that? c. BSN Takaful Sakinah more focuses on death benefits instead of medical benefits. Based on your opinion, discuss what is more important for B40 people? d. What is the essential concept of Takaful?

Due to the immense failure of banking institutions in response to the global financial crisis has witnessed an increase of development on risk management. However Islamic banking is much less affected by the destruction for a variety of reasons probably because it is still a very small part of the global system and has yet to develop enough connectivity to catch the cold. The current wave of financial liberalization and globalization naturally stimulates the question of risk management in Islamic banking. a. As outlined above, critically discuss the issues and challenges of risk management faced by Islamic banking. b. Elaborate the mitigating ways that are suitable to overcome the risk in Islamic banking.

Answer & Explanation Solved by verified expert

See Answer