An insurtech ETAP has introduced a digital car insurance service that redistributes funds to policyholders and supports social good in local communities of Africa
ETAP, providing insurtech solutions and other incentives to improve the automotive experience across Africa, has launched ETAP Takaful, a new ethical car insurance product based on Islamic principles of social good.
Besides common ETAP’s features such as buying the insurance in-app, completing claims in 3 minutes or less, and getting rewarded for good driving and avoiding accidents, users now get the added benefit of ethical insurance that corresponds to Muslim religious beliefs but is available for all customers despite their religious views.
Takaful service doesn’t only protect one’s car from all the risks and dangers that may arise but also helps policyholders contribute to the needs of their community. The principle is simple: users invest money in a common fund to cover each other against damage and loss. Once a year, ETAP collates all the funds remaining after the deduction of claims and associated costs and redistributes them to policyholders. Besides, car insurance policyholders may donate their unclaimed funds to their chosen nonprofit cause.
The list of socially beneficial charities includes nonprofit organizations aiming at ending homelessness, educational programs, healthcare initiatives for the unprivileged social categories, Human Rights Advocacy, and orphanages.
Policyholders may also decide to receive their surplus via cashback or a discount on renewals. According to the insurtech’s data, customers have already been given back over ₦251,846,000 by Takaful underwriters in Nigeria.
Although the ETAP Takaful policy is available to the customers in a digital form within the ETAP app, it provides all the risk protection as conventional insurance.