Solidarity, a leading Takaful company, has entered into a partnership with Sakana Holistic Housing Solutions, a newly launched 50:50 joint venture between Bank of Bahrain and Kuwait and Shamil Bank, to provide Islamic insurance for Sakana's mortgage finance customers.
The Islamic insurance policy offers a Solid Foundation Takaful policy from Solidarity Family Takaful Division, which provides peace of mind to both the customer and the financial institution in the event of the death of the mortgage holder, whereby the outstanding mortgage will be paid by Solidarity to Sakana. The property will then become available to the customer’s family.
In addition, customers have the option to take out Takaful Protection Benefits, named as ‘living benefits,’ in the event of critical illness and total permanent disability.
Solidarity General Takaful Division will also offer the mortgage customers of Sakana a property fire and allied perils Islamic insurance (Takaful), which will provide compensation for loss of property in the event of damage due to fire or any of the allied perils such as explosion or weather-related perils such as floods or earthquakes.
Sakana’s model is based on strong partnership alliances that will position the company as a hub for a network of housing related service providers, commented R Lakshmanan, Sakana CEO. By partnering with Solidarity, Sakana has been able to offer an innovative Islamic life insurance (Family Takaful) cover wherein its customers are required to pay insurance premium (Takaful contribution) for only 60% of the mortgage term and get the benefit of automatic coverage for the remaining period. Sakana’s strategic objective is to be the market leader in mortgage finance in the Kingdom of Bahrain.