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Wednesday, January 26, 2011

Sharia-compliant Insurance company launched

A new Sharia compliant insurance company which will offer group mutual guarantee insurance services for individuals against losses or damages has been launched.

Takaful Insurance of Africa (TIA) will provide a platform for Kenyans to insure themselves under mutual guarantee whereby every participant will contribute a sum of money to a common fund.

Chief executive officer, Hassan Bashir said Takaful was a fully fledged insurance company that would ensure Kenyans put their money in a pool and bear the risks together.

"Takaful intends to introduce an innovative range of products and services that will cater for both the fortunate and less fortunate in the society through risk funds that shall be contributed by members and shall again be fully owned by the same members," said Bashir.

He said Takaful insurance followed Africa's business model based on Sharia principles and was meant to serve all Kenyans regardless of their religious background. The products will be availed in Islamic banks and other designated brokers across the country.

CIC insurance chief financial officer Peter Mwaura who attended the launch Wednesday said the relationship among members of TIA would be that of co-operation for mutual benefit.

"The individual members contribute to an organized and well managed fund whose core objective will be for the welfare of the entire group. Thus the relationship is one of establishing strength through togetherness," said Mwaura.

However, Mwaura recognized the greatest challenge for the company emerging from harmonization of the regulatory environment which will be needed for mitigation of financial risks ethically, a dimension that has never been there before.

Courtesy By: Kenya Broadcasting Corporation

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