AXA Mandiri’s Shariah insurance fosters mutual assistance amongst participants

Risks are shared and covered collectively by all Participants (Takaful) to mutually help one another.

According to a survey by Databoks in 2023 involving 963 respondents, 90.6% of people in Indonesia tend to spend more during Ramadan, especially for returning home for the Eid. The extravagant behaviour during the use of Eid Allowance money is linked to individuals feeling unable to control their priority needs.

Responding to this, AXA Mandiri offers the Shariah Protection Amanah Insurance product, which can be a solution for people seeking innovative protection.

“Related to the moment of Ramadan and also Eid al-Fitr, AXA Mandiri once again presents the latest Shariah insurance product with innovative benefits with a range of benefits for life, health, and end-of-insurance benefits that can be used to fulfil the trust of customers,” AXA Mandiri President Director Handojo G. Kusuma told Insurance Asia.

Shariah Protection Amanah Insurance consists of the basic plan, the plus plan, and the max plan. The come with a choice on payment periods of five years for protection for eight years, or 10 years for protection for 15 years. In all three plans, there are also optional benefits of pilgrimage substitution (badal haji) and endowment (wakaf) features.

For the basic plan, participants will receive death benefits and end-of-insurance benefits.

For the plus plan, participants will receive death benefits, end-of-insurance benefits, and protection benefits from 77 critical conditions.

Finally, for max plan policyholders, they will receive death benefits, end-of-insurance benefits, protection benefits from 77 critical conditions, and inpatient care benefits (daily, ICU, and recovery).

Why Shariah?

Handojo revealed that Shariah insurance has the principle of “Mutual Help and Protection.” Unlike conventional insurance that transfers the risk of Participants to the Insurance Company, in Shariah insurance, risks are shared and covered collectively by all Participants (Takaful), to mutually help one another.

“This is very fitting with the Ramadan momentum because every good deed is multiplied. Eid allowances become beneficial not only for oneself but also for others,” Handojo told Insurance Asia.

Handojo said this protection is very important considering the increasing healthcare costs, especially for critical illness treatment.

“This is in line with the research results from the Faculty of Nursing, University of Indonesia, which stated that out of the total cancer cases in Indonesia in 2020, reaching 2,294,114 cases, 75% of cancer patients experienced financial difficulties as a result of cancer treatment and care within one year after diagnosis,” said Handojo.

The average cost incurred by cancer patients is around Rp102-106 million. Whilst the average cost incurred by cardiovascular or heart disease patients is around Rp203.7 - Rp404 million.

Additionally, participants can realise their future dreams by utilising the end-of-insurance benefits up to 115% of the total basic contributions paid as long as the policy is still active until the end of the insurance period.

Another advantage of Shariah Protection Amanah Insurance is the pilgrimage substitution (badal haji) and endowment (wakaf) features, allowing policyholders to attain blessings and honour in the hereafter. The endowment that can be distributed is valued up to 45% of the insurance benefit.

AXA Mandiri’s Shariah Insurance offers innovative solutions by sharing risks amongst participants, fostering community solidarity. With its focus on mutual assistance and collective risk management, it enhances financial security for individuals and communities alike.

“This approach reflects AXA Mandiri's commitment to providing inclusive and supportive insurance services,” Handojo concluded.