What is Credit Takaful
Credit Takaful provides protection against the risk of non-payment by buyers as a result of commercial and/or political risks. Credit Takaful is an utmost essential facility for Malaysian Exporters to secure payment for their exports and imports either from the buyers or from EXIM Bank by way of Takaful claims.
EXIM BANK’S TAKAFUL MODEL
EXIM Bank adopts the Wakalah and Mudarabah Takaful model, wherein EXIM Bank acts as a Manager/Wakil of the pool fund contributed by the Participants. In consideration of managing the fund, EXIM Bank is entitled to receive a Wakalah fee in a mutually agreed proportion. Whereas the remaining contribution will be pooled in a Tabarru’ fund to pay claims. The Tabarru’ fund is managed under the concept of Mudaraba (profit-sharing) in which any profit arising from the investment made may be distributed to the contracting parties in an agreed ratio.
BENEFITS OF CREDIT TAKAFUL
- Peace-of-mind as payment is assured
- Significant margin of indemnity of loss up to 90 - 95%
- Encourages entrepreneurship by enabling Malaysian exporters to seek new markets
- Promotes competitiveness in Malaysian exporters through better terms offered to overseas buyers, knowing that payment is secured
- Improved credit management of receivables and debt recovery via professional screening of overseas buyers by EXIM Bank
- Facilitates trade financing as Takaful policy can be assigned to banks as security
- Double Deduction Tax relief for contributions paid
- No claim discount
- Share of investment profit (where applicable)
The ability to export on credit terms with this Takaful scheme will make your products more competitive in international markets.