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"Islamic form of insurance--Takaful--has tremendous potential in Pakistan. World-wide total Takaful contributions volume (premiums) in 2004 stood at around $3 billion. Given the phenomenal growth of Takaful, particularly in Malaysia and the Middle East, it is expected that a global estimate of $12.5 billion would be reached by the year 2015.
Presently, there are some 80 plus Takaful (insurance) companies operating globally, including some non-Muslim countries like New Zealand and Sri Lanka,", said Rohail Ali Khan, General Manager, Takaful Pakistan Limited. Takaful Pakistan Limited would be commencing operations soon, with an initial paid up capital of Rs 200 million and an authorised capital of Rs 300 million. It is expected that a large section of Pakistani public that considers conventional insurance as 'un-Islamic' would be more inclined towards take Takaful insurance.
Takaful is a system of Islamic insurance based on the principle of Ta'awun (mutual assistance) and Tabarru (voluntary contribution), where the risk is shared collectively by the group voluntarily. It is a pact among a group of members who agree to jointly guarantee themselves against loss or damage to any one of them, as defined in the pact.
Takaful is operated on the basis of shared responsibility, brotherhood, solidarity and mutual cooperation or assistance, which provides for mutual financial security and assistance to safeguard participants against a defined risk. Takaful operations must be within the spirit of the Shariah, and there is no justification to involve therewith any element which contravenes Shariah principles.
Rohail Ali Khan further explained that the company would provide all Shariah-compliant general insurance products, namely fire, property, engineering, motor, marine, liabilities and miscellaneous covers at competitive rates.-PR

Copyright Business Recorder, 2006

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