JAKARTA – AXA Mandiri introduces its latest protection insurance product in sharia line, Amanah Syariah Protection Insurance. This product provides health and death benefits, financial aid, as well as islamic features, such as waqaf and badal hajj, whilst abiding sharia principles.

"This insurance encourages policyholders to stay amanah to Allah, family, and themselves," said Uke Giri Utama, Director of AXA Mandiri, as amanah is a concept that means taking responsibility towards the self and the beloved one.

This insurance has three plans: Basic, Plus, and Max, with optimum benefits including cover from risk of death, critical illness, as well as hospitalisation. The premium may also be reallocated to policyholders through tabarru and tanahud funds.

For the record, tabarru fund will be forwarded to the deceased's beneficiaries, while tanahud is the fund that will be returned to policyholders should they still be well and healthy at the end of the insurance period.

"I believe this is the first sharia insurance product that offers tanahud fund," Utama said during the Launch of Amanah Syariah Protection Insurance today (19/3).

The premium starts from IDR 385,000 for 5 years of contribution period for insurance period of 8 years, or (starting from) IDR 180,000 for 10 years of contribution period for 15-years insurance period.

According to Utama, the penetration rate of insurance products remains stagnant at 9%. Furthermore, sharia insurance is even lower at 0.13%. However, AXA Mandiri is quite optimistic regarding the market potential.

"The sharia insurance market is still huge, and we work with distribution partners that have extensive user base, namely Bank Mandiri and Bank Syariah Indonesia," Utama added. (ZH)