NAICOM Approves Two New Takaful Insurance Companies
The National Insurance Commission (NAICOM) said it has granted Approval In Principle (AIP) to Cornerstone Takaful Insurance Company Ltd and Salam Takaful Insurance Company Ltd as Composite Takaful operators to transact both family and general Takaful businesses in Nigeria.
A statement today by the Director, Commissioner’s Directorate and Head Corporate Communication, Mr. Rasaaq Salami, said “This new development brings the total number of wholly Takaful operators to four (4), having earlier in 2016 granted licence to Noor Takaful and Jaiz Takaful respectively.”
The AIP to the two new companies, the statement stated “is in line with the Commission’s drive for inclusion towards increasing insurance penetration in the country.”
The statement further added that “A final operating licence will be issued to the companies upon provision of evidence of the following: Conducive business environment at their Head offices; An appropriate IT infrastructure and appointment of a head of IT; Appointment of key personnel and, Submission of first set of products for Commission’s approval.”
The statement said “the Commission is currently processing more applications for possible approvals.”
Takaful Insurance is an Islamic Insurance concept and is a Shari’ah compliance mutual risk transfer arrangement, involving participants and operators. The difference between Takaful and conventional insurance rests in the way the risk is assessed and handled, as well as how the Takaful fund is managed.
The term Takaful also refers to the concept of Islamic insurance based on mutual cooperation, where both risks and funds are shared between the insured and insurer. … Takaful coverage is also available for anyone, and one does not have to be Muslim to take on Takaful coverage or even to be a Takaful agent.
