NAICOM approves two Takaful insurance companies

The National Insurance Commission (NAICOM) on Monday said it had granted approval in principle (AiP) to two Takaful insurance firms.

The companies are: Cornerstone Takaful Insurance Company Limited and Salam Takaful Insurance Company Limited.

The approval gave them the opportunity to operate as Composite Takaful operators to transact both family and general Takaful businesses in Nigeria.

A statement by NAICOM said, the new development brought the total number of wholly Takaful operators to four.

In 2016, licenses were granted to Noor Takaful and Jaiz Takaful respectively.

The statement also noted that the AiP to the two new companies was in line with the Commission’s drive for inclusion towards increasing insurance penetration in the country.

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It was gathered that a final operating licence would 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 also said that NAICOM was processing more applications for possible approvals.

Takaful is a type of Islamic insurance wherein members contribute money into a pool system to guarantee each other against loss or damage.

Takaful-branded insurance is based on sharia or Islamic religious law, and its policies cover health, life, and general insurance needs.

Takaful insurance companies were introduced as an alternative to those in the commercial insurance industry, which are believed to go against Islamic restrictions on riba (interest), and others.

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