This rebate is possible due to the Takaful Malaysia's Wakalah business model. The Mudharabah entitlement is only paid after the certificate has expired provided no claim incurred during coverage period. Below is an example of no claim rebate calculation for individual motor takaful.
The 'No Claim Rebate' is not a guaranteed amount paid to qualifying participants, and its future rate is purely dependent on the claim experience of the risk fund. Based on the Wakalah Model, the percentage of payout might vary depending on the total portfolio claims incurred for the year. Payment of the rebate will only be made if there are surplus from the Participant Risk Fund. Based on the past experience, the no claim rebate has been paid over the last 5 years. All No Claim Rebate payments that are less than RM10.00 will be donated to charity as approved by Takaful Malaysia's Shariah Advisory Body.
If you are interested to purchase from Takaful Malaysia, you may visit any of Takaful Malaysia’s branch offices located nationwide, call the hotline 1300-8-TAKAFUL (825 2385) or send email.