HNB Assurance Takaful: In a Nutshell

 1. About Us

Here at HNB Assurance, we pride ourselves on providing innovative solutions to satisfy the various needs of our customers. With that in mind, we decided to promote HNB Assurance Takaful. This is the first company in Sri Lanka to get clearance from the Insurance Board of Sri Lanka (IBSL) to operate as an ‘Islamic window’ model insurance operation.

2. What is Takaful?

Takaful is an alternative to conventional insurance. This is based on the principles of Sharia, where a group of people pool their financial resources to guarantee each other against  loss/damage which they may encounter.

hands, HNB Assurance Takaful,
Takaful Is about believing in togetherness and being there for one another during times of need

3. Products Offered

Broadly speaking, HNB Assurance Takaful focuses heavily on Mortgage Reducing Takaful, which is aimed at homeowners or those who are looking to buy land/renovate a house. On the other hand, HNB General Takaful offers both motor and non motor Takaful solutions. The non-motor Takaful solutions cover Fire, Construction, Medical and Marine Takaful.

4. Benefits Offered

  • Surplus: is paid at the end of the financial year on the surplus left in the risk fund, it shall be distributed to Participants on agreed ratio based on the type of Takaful plan, provided that the Participant has not incurred any claim and/or the Certificate Holder has not received any benefits payable under each type of cover under this certificate whilst it is in force.
  • Protection/Coverage (guarantee and agreement to look after each other in the event of loss or damage that may be inflicted upon them)
  • Investment Profit (any profits from investment is shared by participant and the operator)
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Our Official Logo: HNB Assurance Takaful

5. How does Takaful work in practice?

Its as easy as 1-2-3.

  1. Takaful works on the basis of an agreement made by the parties involved in the Takaful insurance scheme.
  2. Each party agrees that he/she is both a participant and an operator.
  3. Each party pays a premium to the scheme which is then invested in an Islamically acceptable way.

Do you have more queries about Takaful? Tell us in the comments, in the meantime, check out the Mortage Reducing Takaful Brochure or give our dedicated Takaful line a call on 0114-677-000.

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Disclaimer: The views shared in this blog are based on the macro economic conditions & industry status quo as per the time of publishing.

5 Reasons Why You Should Look Into Child Insurance this Year

For children, January means a new class, new teachers and hopefully new friends. The new year is a great way to reflect about your son or daughter’s security. Ask yourself: Have you thought about securing your child’s future? Here are 5 reasons to do so.

1. Guaranteed life cover: We mentioned earlier about how under 30’s should take life insurance when they are young and healthy. The same applies to your kids. Obtaining a life insurance policy for your child is a smart investment as it provides them with the life cover they need, should they develop a serious medical issue and in turn gives you, the parent peace of mind.

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Let your kids enjoy their childhood, and give you peace of mind with Child Insurance

2. Prepare for the Unexpected I: This is something which everyone avoids, but is important to remember. In the unlikely event that an accident or critical illness were to prove fatal, the last thing you should have to worry about is managing their funeral costs. It makes sense to have a policy which will assist in offsetting expenses, even though we hope you shouldn’t have to.

3. Saving up for education: As a country which takes its education seriously, parents seek to education to improve their child’s future. A child insurance plan comes handy here as the sum on maturity can help to ease the financial pressure off you, meaning you have to pay less in the long run.


4. Prepare for the Unexpected II: Life has numerous uncertainties. If you or your spouse were to get struck down by a critical illness/accident , you would want to keep your child’s future secure. For example, our ‘MyChild’ policy (formerly called ‘Dedunu’) provides the child with the sum assured at maturity if the parent were to permanently disabled. The sum assured doubles if the parent(s) were involved in an accident.

5. Collateral for Loans: A child insurance plan is accepted as a type of security by banks and financial institutions in Sri Lanka. This can help if there are other loans-aside from education/study loans or other debts which may need to be settled. Covering these debts allows your son or daughter the ability to stand on their feet for the future.

Are you ready to make a good decision for the sake of your child? Have a look at our child insurance plans today!

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Disclaimer: The views shared in this blog are based on the macro economic conditions & industry status quo as per the time of publishing.