Chuks Udo Okonta
Operators seeking the licence to
underwrite Takaful Insurance, have continued to turn-in their applications at the
National Insurance Commission (NAICOM), Inspen,
has learnt.
It was gathered from a source in the
commission, that applications have been received from many operators, adding
that the commission would only consider those who meet the stipulated criteria.
Efforts to know the number of
applications that have been received failed, as the individual said the process
is still ongoing.
He noted that interests have been
received from underwriters and the general public, adding that NAICOM would through
the licensing demystify insurance practice, making it possible for operators to
operate at the grassroots.
NAICOM, in April this year, released
the guidelines on Takaful Insurance which it said is in line with the
provisions of the 1997 Insurance Act, and aimed at complementing the current
drive for financial inclusion to increase penetration.
A circular signed by Deputy
Commissioner for Insurance (Technical) NAICOM Ibrahim Hassan, noted that with
the guidelines, all intending applicants seeking license from the Commission to
transact takaful-insurance business in Nigeria must possess the followings:
Certificate of Registration as a full-fledge takaful-insurance company in
accordance with International best practice, adding that such a company must
have, as part of its name, words or terminologies that connote takaful operations.
Hassan said the interested companies
must maintain a minimum deposit in a non-interest financial institution at all
times and that the provision for the establishment of an Advisory Council of
Experts (ACE) must be made in the articles of the Company and there should be
establishment of investment policy for the participants’ Risk Fund.
Takaful means joint guarantee or share responsibility in Arabic, it
operates in according to Islamic laws, the products are designed to carter for Muslims
and non- Muslims. The products are meant to encourage saving culture and build
capital, over a period of time to meet personal or business needs.
Under takaful
plan, people can save regularly for a fixed period that is convenient for them.
The accumulated targeted amount can be used to fund obligations such as
purchase of land, house, marriage or hajj.
It could also be used to meet other long term financial objectives, such
as retirement, children education, travelling expenses as well as expected
commitment
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