PRCL will establish its Takaful Pool to promote Takaful : Captain M. Jamil Akhtar.

 

KARACHI: Captain M Jamil Akhtar Khan, Chief Executive Officer, Takaful Pakistan Limited, said that state-controlled Pakistan Re-Insurance Corporation Limited (PRCL) will establish its Takaful Pool to promote Sharia-compliant insurance business - Takaful.

Making a presentation at a talk show on the subject of Takaful at the city campus of Institute of Cost and Management Accountants of Pakistan (ICMAP) he said his company is going to start its business operations from next week.

The PRCL, at present, is offering re-insurance to non-Sharia insurance business of the country.

He said preferred type re-Takaful is proportional (quota share or surplus) but non-proportional is also a permissible mode.

According to him, at present 84 Takaful companies are operating in 25 countries.

The total insurance premium of OIC members for 2004 was US$50 billion, of this Takaful contribution accounts just 5 per cent that is US$2.5 billion. This amount is expected to increase by US$15 billion by 2015.

According to him, at present only one per cent of GDPs of all Muslim countries have insurance coverage.

He said cars and properties, Banca Takaful, covering almost all banking products will have Takaful coverage but certain properties like, casinos, breweries will not be eligible.

He said the Takaful operator, (Management) acts only as the Wakeel of the Waqf Fund (Insurance Fund).

If, at the end of the year, there is a surplus in the fund, such surplus belongs to the participants (shareholders).

The surplus amount is distributed proportionally after taking into account any claims benefits already availed.

The surplus will be computed on a monthly basis.

Surplus rate for the preceding month will be applicable for refund purpose on (insurance) policies lapsing during the current month.

Participants have the option to advise the Takaful operator to donate their surplus share in charity.

He listed following four challenges, Takaful Companies are facing at present:

1. Lack of uniformity in Sharia decisions with regard Takaful.

2. Some regulatory issues are yet to be settled.

3. There is a serious capacity constraint due to inadequate re-Takaful facilities (re-insurance) in the country.

4. The limited investment avenues are going to hinder future income levels of the Takaful companies.

Courtesy “ The Nation”

 

 
 

 

  Back to main
   
 
 
 
   
Copy Rights Reserved 2006-2007 alhudacibe.com