Sunday, 24 August 2014

Pakistan: UIC permitted to launch Takaful operations

ISLAMABAD: 
The Securities and Exchange Commission of Pakistan (SECP) has allowed United Insurance Company (UIC) to launch Takaful operations.
The notification issued by SECP in this regard said that UIC has been granted permission to launch Window Takaful operations in respect of general Takaful products, according to a statement issued by UIC here Tuesday.
Takaful is a type of insurance system devised to comply with the Shariah laws, in which money is pooled and invested. Commenting on this development, United International Group Chairman Mian Shahid – of which UIC is a member company – lauded SECP for permitting conventional insurance companies to launch Takaful which is the Islamic alternative to mainstream insurance products.
“This decision of the government will help broaden the insurance base as the public concern on the insurance being incompatible with Shariah was barring growth of this sector,” he added.
Shahid informed that after official authorisation UIC will venture into untapped areas and increase insurance penetration which is less than one percent of GDP.
Takaful has emerged as a Shariah-compliant tool for satisfying risk mitigation needs of the tens of millions of Muslims across the world. The western financial crises have developed interest of the masses in the non-Muslim nations to study and subscribe to Islamic financial products.
Earlier, only dedicated Takaful companies were allowed to underwrite Takaful products but now the conventional companies can begin to underwrite Takaful products after obtaining authorisation as “Window Takaful Operator” under the Takaful Rules 2012.

(The Express Tribune / 20 August 2014)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

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