KUALA LUMPUR (Jan 12): CIMB Islamic Bank Bhd today launched Takaful Suria, the first universal takaful hajj product in Malaysia that provides protection and saving benefits to help Muslims fulfil their Hajj aspiration.

The product was developed exclusively by its bancatakaful partner, Sun Life Malaysia Takaful Bhd.

Sun Life Malaysia chief executive officer (CEO) Muhammad Fikri Mohamad Rawi said at the launch that the company's market share in the takaful segment currently stands at 8.6%.

He also shared that the takaful insurance penetration rate in the country is now at 13%, out of the 56% overall insurance penetration rate of 56%. The government's target insurance penetration rate is 75% by 2020.

"With Takaful Suria, we are able to provide that assurance (of lifetime financial guarantee) on top of complementing the bank customer's preparation for one of the most religious aspirations of their lives. We see this as one way for us to deliver more value through products that let customers enjoy peace of mind while financially enabling them to plan for the important milestones in life," he said.

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

It also comes with 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 Hajj or to be used to fulfil other future financial needs, a joint statement from CIMB Islamic and Sun Life Malaysia read.

As for protection, Takaful Suria doubles the basic benefit that is payable in the event of death, total and permanent disability while performing the Hajj. Further, funeral expenses of RM3,000 are provided in the event of death for funeral arrangement, it added.

Muhammad Fikri said that the product had a stabiliser that will give gradual returns, unlike investment link funds that are exposed to market volatility.

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

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