We often hear about problems that occur in the world of takaful today. Although takaful savings are said to be the best saving instruments, in 2020, the Institute of Public Health reported that 43% of respondents answered "not affordable" to the question "Reasons for not having personal health insurance and takaful". This is very concerning even though, in fact, the takaful industry has been established for over 30 years in Malaysia.
What are the problems in the world of takaful today?
The Covid-19 pandemic had a significant impact on the insurance and takaful industry, with one of the most significant effects being a rapid decline in contributions. Many customers are facing financial problems at this time, making it difficult to make contribution payments. However, behind these challenges, the insurance and takaful industry is seeing a resurgence in the first half of 2022, with an increase in medical takaful following public awareness of the importance and benefits of insurance and takaful protection. This trend continued throughout the year, resulting in a high insurance and takaful penetration rate of 56.1%. However, in 2021, the penetration rate for the takaful industry alone was only 18.6%.
What are the alternatives to insurance and takaful?
In Malaysia, there is an alternative created to help those who are less capable, while ensuring that everyone has their own protection plan. This platform is called Community Sharing. The platform was created to help Malaysians who are less capable to access medical facilities through community sharing programs. The platform also offers alternative options to medical facilities at cheaper prices. Each individual can make payments as low as RM 10 per month. This platform is also classified as Shariah-compliant by applying two Shariah-compliant contracts, namely tabarru 'and wakalah.
List of Community Sharing platforms in Malaysia
In Malaysia, there are several Community Sharing platforms that have been created, including:
You can visit the following website for more information and become part of the Community Sharing Program. While these 2 program using a similar concept, let us take a look at what are the key differences between them.
| Program Name | GatherCare | Lyndung |
| Administrator | Gathercare Sdn. Bhd. | Lyndung Sdn. Bhd. |
| Membership Fee (Annual) | RM 360 - RM 400 | RM 120 |
| Membership Fee (Monthly) | Not available | RM 10 |
| Entry Age | 15 days - 45 years | 18 - 40 years |
| Initial Sharing Contribution | RM 100 | RM 100 |
| Trustee | Ong and Manecksha, Law Firm | Amanah Warisan Berhad (AWARIS) |
| eKYC | No | CTOS Data Systems Sdn. Bhd. |
How is the Community Sharing Program different from Insurance and Takaful?
The Community Sharing Program is different from insurance and takaful in that it functions as a trusted online-based platform connecting individuals who share the same interests in improving their community by supporting and taking care of each other's well-being, especially health. The program is built on the principle of mutual aid (ta'awun), community support, and responsibility. The concept of the program is to share medical expenses among the community, not for their convenience or cost savings, but they are driven by their conscience to support, care for, and help each other in times of need. The main goal of the program is to ensure that every member has easier access to healthcare.
Every community member who agrees to be part of the community must pay a small amount annually, in the form of a membership fee or wakalah, and the medical bills are divided equally (equally shared).
In Lyndung program for example, there is no agent system used to manage the program. Instead, it is managed by the company itself. The company will then appoint a Shariah Compliance Trust Holding Company as an independent trustee to monitor and manage the funds donated by community members. By applying this method, there will be no more agent issues that will arise in the management system of this Community Sharing Program.
Conclusion
In conclusion, the Community Sharing Program is a worthwhile effort that all parties should take advantage of to ensure that all individuals today have their own protection plans while ensuring sincerity and blessings are fostered in everything we do.