Introduction
In the world of finance, trust is the currency that matters most. For the takaful industry, that trust is sacred — it is the foundation upon which the entire concept of mutual protection stands. Participants join a takaful plan not only for financial security, but also because they believe in a system built on amanah (trust), ta‘āwun (mutual assistance), and ihsan (excellence).
The Value-Based Intermediation for Takaful (VBIT) framework places ethics and integrity at the heart of this system. It reminds operators that ethical conduct is not just a compliance requirement; it is a competitive advantage, a business philosophy, and a spiritual obligation. When takaful is practiced with sincerity and honesty, it earns something far more valuable than market share — it earns the confidence and loyalty of the people it serves.
Ethics as the Core of Value-Based Intermediation
Ethical conduct is one of the five main thrusts of the VBIT framework, specifically embodied in the principles of Best Conduct and Good Self-Governance. These pillars guide operators to uphold fairness, transparency, and professionalism at every level — from leadership decisions to the daily interactions between agents and participants.
Under VBIT, “ethical conduct” is not limited to avoiding wrongdoing. It is a proactive commitment to doing what is right, even when no one is watching. It calls for empathy in service, honesty in communication, and integrity in decision-making.
When participants experience these values consistently, they begin to see takaful not as a product to buy, but as a partnership to trust.
The Meaning of “Takaful with Heart”
The phrase “Takaful with Heart” captures what VBIT truly represents — a form of finance that cares. It means putting people before profit, sincerity before sales, and long-term trust before short-term gain.
In practical terms, Takaful with Heart means:
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Selling products that genuinely meet participants’ needs.
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Communicating in clear, transparent language without hidden terms.
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Treating every participant, especially during claims, with empathy and respect.
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Building internal cultures that value ethics as much as efficiency.
When ethics become part of an organisation’s DNA, customers feel it. They see it in the tone of an agent’s voice, the transparency of a brochure, and the fairness of a claims decision.
The Role of Ethical Conduct in Building Trust
Trust cannot be demanded — it must be earned. In the takaful industry, that trust is built slowly through consistent ethical behaviour across three main dimensions:
1. Transparency in Communication
Many participants fear insurance because they don’t fully understand it. Complex terms, fine print, and vague promises can make people skeptical. VBIT addresses this by promoting clarity and simplicity.
Operators are encouraged to use straightforward explanations, transparent pricing, and visual summaries that show exactly what is covered and what is not. Agents are trained to educate rather than persuade, ensuring that participants make informed decisions.
When communication is honest, participants feel respected — and respect breeds trust.
2. Fairness in Claims Handling
Claims are the true test of integrity. The “moment of truth” for any takaful operator arrives when a participant faces loss or hardship. Under VBIT, fairness is not just a slogan; it’s a duty.
Operators are encouraged to:
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Process claims promptly, with empathy and clear communication.
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Avoid unnecessary delays caused by technicalities.
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Provide interim financial assistance when possible.
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Treat each claimant with dignity, regardless of the claim’s size.
Fair treatment during difficult times leaves a lasting emotional impact — and turns participants into lifelong advocates.
3. Integrity in Leadership and Governance
Ethics begin at the top. Boards and senior management must embody amanah — stewardship that values both accountability and compassion.
VBIT’s governance principles require leaders to ensure that all business activities reflect Islamic values: avoiding conflict of interest, ensuring fair remuneration, and upholding transparency in reporting. Ethical leadership inspires trust not just from participants, but from employees, regulators, and investors alike.
The Ripple Effect of Ethical Conduct
When ethics drive decision-making, the benefits extend far beyond compliance.
For Participants
They gain peace of mind knowing that their contributions are managed responsibly and that the operator genuinely cares for their well-being. This builds emotional loyalty that no marketing campaign can replicate.
For Operators
Ethical conduct reduces reputational risks, builds brand credibility, and improves operational efficiency. A transparent, trusted operator attracts more customers, retains agents longer, and enjoys stronger partnerships with regulators and community organisations.
For Society
When takaful operators act ethically, they strengthen the social fabric. They promote fairness, prevent exploitation, and reinforce the Islamic principles of justice and compassion that underpin Malaysia’s broader financial system.
Ethical Conduct as a Growth Strategy
VBIT demonstrates that ethics and growth are not opposing forces. In fact, they reinforce each other. A company that behaves ethically gains long-term benefits that translate directly into financial success:
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Customer Retention: Satisfied participants stay longer and recommend the operator to others.
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Lower Costs: Transparent communication and fair treatment reduce disputes and litigation.
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Stronger Partnerships: Ethical behaviour attracts collaborations with reputable institutions and investors who value integrity.
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Talent Attraction: Employees prefer to work in organisations that uphold values and treat them with respect.
Ethics, in this sense, are not just good morals — they are good business.
Embedding Ethics in Everyday Operations
To ensure that ethics are not left to chance, operators under the VBIT framework are encouraged to institutionalise ethical practices across all levels:
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Code of Conduct: Establishing a clear, public code that governs behaviour for all employees, agents, and partners.
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Ethics Training: Regular workshops and courses that teach staff how to apply Shariah principles in practical scenarios.
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Whistleblowing Mechanisms: Safe channels that allow employees to report unethical conduct without fear of retaliation.
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Impact Auditing: Periodic reviews to assess whether decisions and practices align with the company’s ethical commitments.
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Rewarding Integrity: Recognising and celebrating employees or agents who exemplify ethical behaviour.
When integrity is recognised and rewarded, it becomes part of the culture rather than a compliance box to tick.
VBIT and the Broader Trust Economy
In a rapidly digitalising world, trust has become both fragile and invaluable. Participants interact with brands through screens, apps, and online platforms — often without ever meeting an agent in person.
VBIT reinforces the need for digital ethics — protecting personal data, being transparent about algorithms, and ensuring that digital tools enhance, not exploit, the participant experience.
A takaful operator that applies VBIT values consistently, both offline and online, creates a trust ecosystem where participants feel safe, informed, and respected at every touchpoint.
From Compliance to Character
The evolution of takaful mirrors the evolution of character in business. In its early years, the focus was on compliance — making sure products met Shariah standards. Today, under VBIT, the focus has shifted to character — ensuring every action reflects the ethics and empathy that define Islamic finance.
Compliance can be enforced; character must be cultivated. That’s what makes VBIT transformative: it builds institutions that not only follow the rules but embody the values behind them.
Conclusion
“Takaful with Heart” is more than a slogan — it is a philosophy. It reminds us that the success of the takaful industry depends not only on profits or growth, but on the trust it earns from the people it protects.
Through the Value-Based Intermediation for Takaful framework, ethical conduct has become the cornerstone of sustainable growth. It ensures that every policy sold, every claim processed, and every interaction made is guided by fairness, compassion, and integrity.
When ethics drive business, the results are profound: stronger relationships, greater resilience, and a deeper sense of purpose. In the end, a takaful operator with heart does not just protect lives — it enriches them.
That is the ultimate promise of value-based intermediation: a financial system that grows not in spite of ethics, but because of them.
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