Credit Protection Policy

Concept of Coverage

• Beneficiary insolvency (default).
• The beneficiary’s refusal or inability to take delivery of the contracted goods (provided this is not caused by any breach by the subscriber).
• The beneficiary’s refusal or inability to pay amounts due to the subscriber for goods received and accepted.

A supplementary insurance cover on the tangible assets of the financed subject is necessary to cover other risks, and its term should match the main policy.

Core Foundations of Financing Protection

1. Mutual takaful among participants during the subscription period in cases of insolvency, total permanent disability, or death.
2. The subscriber is considered a voluntary contributor through annual contributions.
3. The Company manages the fund’s risks and invests surplus funds under a Mudarabah structure.

Benefits of Financing Insurance

1. Real guarantee for financing and granting institutions.
2. Support for central bank and state policies, contributing to GDP.
3. Insurance surplus becomes an indirect revenue source for participating entities.
4. Improving low-income groups’ earnings.
5. Greater flexibility to adopt multiple financing modes instead of focusing mainly on Murabaha.

General Terms

1. Coverage for each financing operation begins on the effective date of the contract with the beneficiary, provided it falls within the policy period.
2. The policy is renewable for an additional (12) months by mutual agreement.
3. The Company may amend terms upon renewal and may revise pricing for financing operations starting after the date stated in the written notice.

Subscription Requirements

1. Complete the subscription application in writing; the application and documents form an integral part of the contract.
2. Subscriber age must be at least (18) and not exceed (65) at the start of subscription.
3. Pay the first premium/contribution before the subscription begins.
4. Subscription starts/ends according to the dates in the schedule attached to the contract.
5. Notify the Company in writing of the debtor’s insolvency/disability/death within (60) days of awareness.
6. Submit required proof and documents within (120) days of awareness.
7. The Company may require a medical examination if the benefit arises due to disability.

Takaful Benefits

1. Entitlement to the remaining financing amount from the insolvency date until the end of coverage.
2. Entitlement to the remaining financing amount from the disability date until the end of coverage.
3. Entitlement to the remaining financing amount from the death date until the end of coverage.

Eligibility Conditions for Takaful Benefits

1. Application data must be accurate; intentional concealment of material facts results in loss of benefits.
2. All due contributions must have been paid before insolvency/disability/death.
3. Provide legal documents proving insolvency/disability/death (additional documents apply in death cases).
4. Provide the legal inheritance certificate issued by the competent authority.
5. Insolvency is established by a court judgment of bankruptcy or liquidation.

Cases Where Benefits Are Not Payable

1. Insolvency/disability/death occurs after the subscriber signs and submits a withdrawal request.
2. The debtor did not pay the premium/contribution before insolvency/disability/death.
3. Fraud/deceptive conduct voids the contract; any amount paid by the Company must be refunded by the subscriber.