KUALA LUMPUR: Hong Leong Tokio Marine Takaful Bhd aims to achieve a premium of RM200mil for its financial year ending June 30, 2010 (FY10), says chief executive officer Latiff Abu Bakar.

Latiff said this would be achieved through niche markets and strategic alliances, such as offering Badal Haji service in collaboration with TH Travel & Services Sdn Bhd.

Performing the haj is one of the five pillars of Islam and Badal Haji is an act of performing the haj on behalf of the deceased, sickly, elderly or those who are disabled.

“Looking at the current financial year, we are expecting about RM200mil in contribution, given the current economic conditions.

“Our strategy is to go for niche markets like this and forming strategic alliances,” Latiff said after a signing ceremony between the two parties here yesterday.

Of the RM200mil premium, he said family insurance was expected to contribute RM5mil while bancassurance would remain the biggest contributor at about 70%.

He did not reveal the expected premium for FY09 but said the company recorded a contribution of RM236mil for FY08, up by 75% to 85% from the previous year.

On the tie-up with TH Travel & Services, Latiff said those taking up family insurance could include the Badal Haji service in their policies, whereby RM2,500 from their insurance would be deducted for it upon demise or total permanent disability.

“Before this, we have been paying a lump sum to the beneficiaries, but did not think of the insurer’s obligation to one of the five pillars of Islam,” he said.

TH Travel & Services chief executive officer Major (Rtd) Mohd Ramli Othman said the company would recruit Malaysian students in Mekah and Madinah to carry out the Badal Haji for the family insurance customers.

He said RM2,500 charged was a standard rate, especially since it would be done in a structured manner. — Bernama