COMMERCIAL TAKAFUL

Commercial Takaful helps keep the economy running smoothly by protecting businesses from potential losses they couldn’t afford to cover on their own, which allows businesses to operate when it might otherwise be too risky to do so

Fire Glass Theft Money Business All Risk Public Liability Commercial Motor Goods In Transit

Fire

Any individual is at risk of losing property as a result of Fire. Fire can occur due to a series of uncontrollable events, or as the result of a deliberate act of arson. In addition to personal effects or business equipment being destroyed, a building might be structurally damaged, stock totally or partially damaged fixtures and fittings permanently damaged. Fire cover helps the covered to rebuild, repair and replace fire-damaged property.

This cover can be subdivided as follows:

Commercial Buildings Takaful

Business premises should be covered for their full rebuilding cost (including professional fees and the cost of site clearance), and not just for their market value. You may need expert advice to calculate the rebuilding cost, which often differs significantly from market value.

Fixtures and Fittings Takaful

This section provides cover for fixtures and fittings within a building against fire and allied perils (Fire, Explosion, Lightning and earthquake). These must be covered for their market value, to avoid application of average.

Stock Takaful

Most companies have basic business cover, but all too often it doesn’t include specific high value stock items. Stock, of course, could be anything from spare motor parts to frozen chips – and storage could be anything from a warehouse to a refrigerated vehicle – but, whatever it is you sell, you need to consider the consequence of losing it.

How much stock cover do you need?

Stock should be covered for the amount it would cost to replace it – ie the cost price and not the selling price. But be careful not to undervalue stock, as payment on a claim could be seriously affected.

The Takaful concept in Fire Takaful

When you participate in Fire Takaful, you contribute to the general Takaful fund in the form of participative contribution (tabarru’). You undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants suffer loss or damage to his property or contents.

The concept of average in Fire Takaful

If the amount covered is less than the actual replacement / rebuilding cost, then you shall be considered as being your own Insurer/Operator for the difference and shall bear a rateable share of the loss accordingly as follows:

Claimed amount	R10 000
Covered for	R50 000
Replacement value	R100 000 (50% under-covered)
Average calculation	R10 000 X R50 000
	—————————-
	R100 000
Claim Payment (before applicable excess)	R5 000 (50% of claimed amount)

Under covering means the sum covered at the time of loss is less than the actual replacement / rebuilding cost of the total value of your Building or Stock.

Disclaimer:

This brochure does not form a contract. Please refer to your Participation Agreement for full details

Glass

Glass Takaful covers for loss of or damage to internal and external glass (including mirrors)

Cover can be extended to include the following:

Cost of boarding
Employment of a night watchman
Damage to shop fronts
Frames
Window displays

The Takaful concept in Glass Takaful

When you participate in Glass Takaful, you contribute to the general Takaful fund in the form of participative contribution (tabarru’). You undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants suffer loss or damage to his property.

Please note that Glass cover is subject to the Average condition.

The concept of average in Glass Takaful

If the amount covered is less than the actual replacement cost, then you shall be considered as being your own Insurer/Operator for the difference and shall bear a rateable share of the loss accordingly as follows:

Claimed amount	R10 000
Covered for	R50 000
Replacement value	R100 000 (50% under-covered)
Average calculation	R10 000 X R50 000
	—————————-
	R100 000
Claim Payment (before applicable excess)	R5 000 (50% of claimed amount)

Under covering means the sum covered at the time of loss is less than the actual replacement cost of the total value of your Glass.

Disclaimer:

This brochure does not form a contract. Please refer to your Participation Agreement for full details

Theft

Theft Takaful covers all contents (stock, goods etc) of any covered building against theft, provided there has been forcible and/or violent entry or exit from the premises. Cover is usually granted on a first loss basis.

First Loss Definition:

Partial Cover which covers less than the full value of goods or property at risk where both the participant and the Takaful operator acknowledge that the average condition does not apply. These policies cover only the estimated largest possible loss, and is commonly used in burglary and/or theft cover where the possibility of total loss is extremely remote.

* Therefore it is imperative that the correct limit is chosen.

The Takaful Concept in Theft Takaful

When you participate in Theft Takaful, you contribute to the general Takaful fund in the form of participative contribution (tabarru’). You undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants suffer loss or damage to his property or contents.

Disclaimer:

This brochure does not form a contract. Please refer to your Participation Agreement for full details

Money

Money Takaful provides cover on an “all risks” basis and covers cash, cheques, postage stamps and certain other negotiable documents. Varying limits will apply to money on the premises in and out of business hours, in safes, at the homes of directors or employees and in transit, and there may be requirements in the policy relating to safe keys and the method of transit.

The Takaful Concept in Money Takaful

When you participate in Money Takaful cover, you contribute to the general Takaful fund in the form of participative contribution (tabarru’). You undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants suffer loss or damage to his property as described above.

Disclaimer:

This brochure does not form a contract. Please refer to your Participation Agreement for full details

Business All Risk

Business All Risk Takaful provides cover for business items that are usually carried around. Cover is very wide except for those risks that are specifically excluded. This is the broadest type of cover that can be purchased and cover is worldwide.

Typical items covered under Business All Takaful

Cell phones or other mobile communication devices
Tools of trade
Photographic equipment
Navigational devices, including your GPS
Laptops

The Takaful concept in Business All Risk Takaful

When you participate in Business All Risks Takaful, you contribute to the general Takaful Fund in the form of participative contribution (tabarru’). You undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants suffer loss or damage to his/her equipment.

Disclaimer:

This brochure does not form a contract. Please refer to your Participation Agreement for full details

Public Liability

Public Liability Takaful is designed to pay out for any compensation or legal costs that may occur in the event of a business, business owner, or private individual being found to be responsible for another individual, group or company’s loss.

The Takafol concept in Public Liability Takaful

When you participate in Public Liability Takaful, you contribute to the general Takaful fund in the form of participative contribution (tabarru’). You undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants be found liable for another individual or company’s loss.

Who Needs Public Liability Takaful?

Almost all businesses should have some form of Public Liability cover. Any business can potentially damage people or property. All businesses are bound by a duty of care for their clients, suppliers, distributors, neighbours and the environment. In today’s litigious society, companies are being held more and more responsible for injuries or damages they cause to their surroundings or to other people. Companies at particular risk are those who go into other people’s premises to perform their work, companies who manufacture products which can potentially cause damage, or companies who work on other people’s assets (eg vehicle repairers).

Why should you take out Public Liability Takaful?

One only needs to read the newspapers to see the recent spate in liability awards made against companies who failed to protect their surroundings or third party people. With the courts cracking down on negligent companies, even one claim could potentially bankrupt your business. Unfortunately, accidents do happen and even in a perfect world, every company would be unable to perfectly protect every person or item they come into contact with. Public Liability cover costs a fraction of the price of paying large awards if your company is found negligent. Even if your company has not been negligent, the legal costs incurred in defending your company could cripple a business if not covered against. Taking Public Liabilty cover is a prudent way to ensure that your business will survive through all the trials and tribulations it will face.

Typical claims suffered on Public Liability Agreements

We generally receive two different types of Public Liability claims, either smaller valued but more frequent claims, or the more rare but extremely large claims. Small frequent claims include client’s vehicles being damaged by unkept parking areas, items falling off of buildings hitting nearby cars or other buildings, gates closing on third party vehicles, general lack of maintenance which causes damages to the surrounding areas etc. The more rare but crippling claims occur when third party people are injured because a company failed to protect them. There have also been cases where entire hotels or townhouse complexes had to be evacuated and repaired because of accidents made by businesses, the claim was therefore not only for the repairs but also for providing accommodation of a similar nature to all the distressed occupants.

Disclaimer:

This brochure does not form a contract. Please refer to your Participation Agreement for full details

Commercial Motor

Commercial Motor Takaful is designed to provide peace of mind for private vehicles, private vehicles used for commercial purposes, and commercial vehicles. We offer you a choice of the following type of covers which deliver financial protection against fire or storm damage theft, motor accident damage, third party liability, passenger liability, property damage, resonable towing costs, and theft recovery costs, amongst others.

Types of cover

Generally, there are 3 types of cover under our Commercial Motor Takaful plan:

Comprehensive – This gives you the widest cover against accidents and theft, including damage you may cause to another party.
Third Party Fire & Theft – This covers you for damages against another party or if the vehicle is damaged as a direct result of fire, explosion, lightning, an attempted theft, or if it is stolen.
Third Party only – This will only cover the other party and their property due to damages caused by you. This will not cover damages or loss to your vehicle.

How is the value of my vehicle determined?

Make sure that the amount you choose to be covered for reflects the current retail value of your vehicle (including any accessories) i.e. the cost of replacing your vehicle with a similar make, model and condition. If the amount covered is less than the retail value, then the fund would only pay out the maximum amount as is shown in your statement of cover.

The Takaful concept in Commercial Motor Takaful

When you participate in Commercial Motor Takaful, you contribute to the general Takaful fund in the form of participative contribution (tabarru’). You undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants suffer loss or damage to his / her vehicle.

Disclaimer:

This brochure does not form a contract. Please refer to your Participation Agreement for full details

Goods In Transit

Goods in Transit Takaful covers all cargo being transported whether traveling via air, sea or over land. The goods being transported are under threat of the transportation device being involved in an accident or being stolen and the cargo been lost as a result.

The Takaful concept in Goods in Transit Takaful

When you participate in Goods In Transit Takaful, you contribute to the general Takaful fund in the form of participative contribution (tabarru’). You undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants suffer loss or damage to his/her property.

Why should you take out Goods in Transit Takaful?

We live in a world rife with crime, changing weather conditions and less robust equipment. Add to this the human tendency for accidents, maintenance faults, lack of care when handling etc, and the need for cover when transporting your cargo becomes obvious. Contribution costs a fraction of the price of replacing your cargo if it is damaged or stolen. Taking out Goods in Transit cover, is a prudent way to ensure that you will not have to pay double for cargo when it is not delivered safely.

Disclaimer:

This brochure does not form a contract. Please refer to your Participation Agreement for full details