MICROCAPITAL BRIEF: BankIslami, TPL Life Offering Shariah-compliant Hospitalization, Funeral Coverage for COVID-19 in Pakistan

BankIslami, an institution offering Shariah-compliant financial services in Pakistan, recently partnered with TPL Life, a digital insurance technology firm controlled by Pakistan’s Habib Bank Limited (HBL), to offer coverage for people in case they become ill with COVID-19. The package pays up to: (1) PKR 30,000 (USD 195) upon diagnosis; (2) additional funding of an unspecified amount should the patient be hospitalized; and (3) funeral expenses up to PKR 100,000 (USD 651). The insurance is in the form of “takaful,” through which coverage is based on the amount of funds paid in by other participants, in a manner allowable under Islamic law.

BankIslami offers savings and lending services to individuals, farmers, corporations, and small and medium-sized enterprises (SMEs). It lends on an interest-free basis known as “murabaha,” whereby the seller and buyer of an asset agree to its cost plus markup as a substitute for interest, as interest is not allowed by the Shariah. BankIslami operates 340 branches in 114 cities across Pakistan. In 2020, it reported total assets of PKR 336 billion (USD 2.18 billion), annual return on assets of 0.55 percent and annual return on equity of 11 percent.

TPL Life, a subsidiary of TPL Corp, is headquartered in the city of Karachi. TPL Life serves individuals and SMEs, with approximately 900,000 individuals benefiting from its health insurance during 2020, either directly or via their employers. The number of life insurance customers the firm serves is not available.

Founded in 2008, TPL Corp is a holding company active in areas such as insurance, real estate, transport, security and navigation. As of 2020, it reports PKR 19 billion (USD 123 million) in total assets. The firm is owned by HBL, which serves 30 million customers in 15 countries as of 2021.

By Sophie Fiala, Research Associate

Sources and Additional Resources

Daily Times article
https://dailytimes.com.pk/747539/bankislami-and-tpl-life-come-together-to-bring-comprehensive-covid-coverage-for-their-customers/

BankIslami homepage
https://bankislami.com.pk/

BankIslami 2020 annual report
https://bankislami.com.pk/wp-content/uploads/2021/Annual/BankIslami-Annual-Report-2020.pdf

TPL Life homepage
https://tpllife.com/

TPL Corp homepage
http://tplcorp.com/

TPL Corp 2019-2020 report
http://tplcorp.com/investor-relations/#FS_2021

HBL homepage
https://www.hbl.com/

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