What is Takaful Auto Collision and Comprehensive Protection?
Takaful is a system of Islamic insurance that is based on the principle of mutual help and cooperation.
One Llama's Takaful Auto Collision and Comprehensive Protection is a shared risk program where members contribute to a pool of funds that is used to cover losses suffered by other members. This is different from traditional insurance, where premiums are paid to an insurance company.
Our program covers damage to your vehicle resulting from accidents, collisions, natural disasters, and theft.
Collision Coverage
Comprehensive Coverage
Key Aspects of Takaful
1
Mutual Cooperation
Takaful is based on mutual cooperation, solidarity, and trust.
2
Shared Responsibility
It emphasizes shared responsibility and mutual undertakings.
3
Shariah-compliant
Takaful is compliant with Islamic law, excluding uncertainty, gambling, or interest.
4
Fund Management
A takaful operator manages the fund and disburses benefits as needed.
5
Participants & Insured
Participants contribute to the fund, sharing risks; the insured are those assisted.
6
Beneficiaries
Beneficiaries receive support from the fund.
The concept of Takaful is rooted in mutual assistance and solidarity, principles reflected in the Quran and Hadith. Its origins trace back to early trade, where groups formed agreements to support each other in times of loss.
How Does One Llama's Mutuality Model Differ from Auto Insurance?
One Llama Mutuality
Risk Sharing: Members contribute to a pool of funds in their One Llama wallet, and claims are paid out from this pool. The community shares the cost of the accident after it occurs from a shared pool of funds.
No Indemnification: One Llama does not indemnify its members.
Savings Distribution: Members benefit from lower costs and a sense of community. All the savings and profits pass back to the members. If the member has no incidents in the 6 month period, we estimate a likely 40% savings on their plan that they can take out or use for their renewal.
Refunds: The full 70% pledge is refunded to the member, if there are no claims for the whole network in the 6 month period.
Auto Insurance
Risk Sharing: Premiums are paid to an insurance company, and claims are paid out by the insurance company. Customers are not directly involved in the risk-sharing process.
Indemnification: Insurance company indemnify its policyholders.
Savings Distribution: All the savings and profits go back to shareholders of the insurance company.
Refunds: Policyholders do not get back their contributions if there are no claims.
Key Benefits of One Llama's Takaful Approach
1
Lower Costs
You benefit from lower cost and contribute to a shared pool of funds. The community shares the cost of the accident after it occurs from a shared pool of funds.
2
Community-Driven
You become part of a community committed to mutual support and financial security.
3
Ethical Principles
One Llama operates on Islamic principles of fairness, transparency, and cooperation.
Eligibility and Membership Requirements
Transparency and Ethical Principles
Transparency
We provide clear and accessible information about our policies and procedures.
Fairness
We treat all members with respect and ensure fair claim assessment.
Accountability
We are accountable to our members and strive for ethical practices.