underwriting guidelines

WELCOME

Presented by:

Dr. Bakht Jamal Shaikh- Chief Operating Officer.

Dawood Family Takaful Limited

Basic Concepts of Underwriting

Individual Family Takaful Scheme

Overview and Purpose

•Unity of Purpose •Clarity of Direction •Performance Evaluation•To Provide Clear Guidance to Consultant•Good Understanding of Operation Procedures•Clear Job Assignment•To Process Promptly•To Avoid Unnecessary Delays

BASIC CONCEPTS

Why Underwriting?

BASIC CONCEPTS

CAUSE OF DEATH1. Old Age

BASIC CONCEPTS

CAUSE OF DEATH2. Disease

BASIC CONCEPTS

CAUSE OF DEATH3. Accidents & Disasters etc.

BASIC CONCEPTS

CAUSE OF DEATH4. Murder

BASIC CONCEPTS

CAUSE OF DEATH5. Suicide

BASIC CONCEPTS

CAUSE OF DEATH

6. War, Terrorism & Riot etc

BASIC CONCEPTS

CAUSE OF DEATH7. Occupation

BASIC CONCEPTS

DEATH IS CERTAIN

DATE IS UNCERTAIN

BASIC CONCEPTS

A. SUM COVER

B. CONTRIBUTION

Payable on Uncertain Event death disability disease

BASIC CONCEPTS

C. INSURABLE INTEREST

D. PROSPER/PAYER OTHER THAN PARTICIPANT

BASIC CONCEPTS

E. AQAD

F. TAKAFUL CONULTANT DECLARATION

How to calculate?Current ProposalI. Sum Cover II. ATBIII.FEB IV.FIB % term PV(75%) V. Previous Certificate TSAR issued

within 3 yrsVI.Total

Total Sum At Risk (TSAR)

New Business• Proposal Form Legal Evidence of

the Contract How to Complete a

Proposal Form Proposal form should be  filled with black quality pointer In CAPITAL LETTERS In one writing only. No Eraser, No Whito, No Blanco, No Overwriting , No cutting

New Business• 

Proposal Form Legal Evidence of

the Contract

How to Complete a Proposal Form

New Business• 

Proposal Form Legal Evidence of

the Contract

How to Complete a Proposal Form

Under-writing General Guide

Lines• 

Purpose & Importance of Under-writingNon Medical Under-writingMedical Under-writingResidence Under-writingFinancial Under-writingFemales Under-writing

NON MEDICAL

•Total Sum Cover comes within non medical limit

•The application is free from any medical problem

MEDICAL

•Total Sum Cover comes within medical limit

•Medical problem (s) is declared

•Standard medical is valid for 6 months

•Medical is to be conducted by company appointed physician

MEDICAL

•The company reserve the right for any additional report , supplementary test or examination.

RESIDENCE UNDERWRITING

Residents RiskAfghanistan

Iraq

Kashmir

Tribal Areas etc

Foreigner Risk

FINANCIAL UNDERWRITING Economic Value of Life

Contribution Paying Capacity

Know Your Client (KYC)

B. FINANCIAL UNDERWRITINGECONOMIC VALUE OF LIFE Age

Remaining Productive Life

Gender

Current income

FINANCIAL UNDERWRITING Personal Expenditures

Assets

Liabilities

Net Assets

UNDERWRITING

SELECTION Vs

ANTISELECTION

FEMALE LIFE

Risk on the life of employed or self employed,

married or unmarried female is treated at par

with similar risk as on male life. • Age

• Marital Status

• Educated

• If married; details of coverage on the life of her

husband

FEMALE LIFE

• Number of children and their ages

• If unmarried, whether parents and /or

other siblings are insured

FEMALE LIFE

Category AMarried, Educated, housewife, and husband also insured

A (i) If Graduate

Treat at par with male life. The sum Cover is limited to 75%

of Sum Assured on Husband’s Life subject to maximum

1000,000

A (ii) If Matriculate

Treat at par with male life. The Sum Cover is limited to 50%

of Sum Assured on Husband’s Life to maximum 500,000.

No Rider

FEMALE LIFE

Category BMarried, Non Matric, housewife, and husband also

insured

B (i) with Children

Treat at par with male life. The sum Cover is

limited to 50% of Sum Assured on Husband’s Life

subject to maximum 500,000

Medical may be required

A (ii) with out Children

Treat at par with male life. The Sum Cover is

limited to 25% of Sum Assured on Husband’s Life

to maximum 250,000.

No Rider - Medical may be required

FEMALE LIFE

Category C

Married, Unmarried, Non

Matric, illiterate, housewife,

and husband/Parent/sibling

NOT insured

DECLINE RISK

Question & Answer Session

Thank You