This article first appeared in The Edge Financial Daily, on January 13, 2016.

KUALA LUMPUR: CIMB Islamic Bank Bhd, the global Islamic banking and finance arm of CIMB Group, launched the first universal takaful haj product in Malaysia, Takaful Suria, which provides protection and saving benefits to help Muslims fulfil their haj aspirations.

The product was developed exclusively by its bancatakaful partner, Sun Life Malaysia Takaful Bhd, whose market share in the takaful segment of the country now stands at 8.6%, its chief executive officer (CEO) Muhammad Fikri Mohamad Rawi said at the launch.

Takaful Suria provides the covered individual a lump sum of a RM1,500 special payout after the third contract year to set up a Tabung Haji account or to top up existing savings.

There is also a final benefit where the value of the universal account will be paid at the end of the contract term to further ensure financial preparedness to perform the haj, or to be used to fulfil other future financial needs, a joint statement from CIMB Islamic and Sun Life Malaysia read.

Protection-wise, Takaful Suria doubles the basic benefit, which is payable in the event of death or total and permanent disability, while performing the haj, with a sum of RM3,000 provided for funeral expenses.

Muhammad Fikri said the product had a stabiliser that gives gradual returns, unlike investment-linked funds that are exposed to market volatility.

CIMB Islamic CEO Rafe Haneef said since the soft launch of Takaful Suria in November 2015, 1,000 policies had been sold.

* No target has been set for the new product, but both Muhammad Fikri and Rafe are optimistic about it, which is now available at all CIMB Bank and CIMB Islamic Bank branches nationwide.