Takaful Pakistan Limited Chief Executive Officer (CEO) Captain M Jamil Akhtar has said that Takaful (Islamic Insurance) has bright prospect to flourish in the country. Addressing a seminar on "Takaful" organised jointly by Karachi Chamber of Commerce and Industry (KCCI) and Al-Huda-CIBE on Thursday, he said Takaful offered insurance products those were free from Riba.
He said Fatwa issued by Higher Council of Saudi Arabia in 1397AH, and Fatwa issued by the Fiqh Council of the OIC in 1405AH (1985) confirming validity of Takaful. He said Takaful was a form of mutual help in furthering good, virtue by helping others who were in need.
He said there were now around 85 Takaful companies in over 25 countries of the world. Total insurance premium of OIC contraries in 2004 was around 50 billion dollars of this Takaful contribution accounts for five percent or around 2.5 billion dollars. He claimed that average growth rate of Takaful was higher than conventional insurance companies (around 25 percent).
M Jamil Akhtar also claimed that non-Muslims were increasingly opting for Takaful products for commercial benefits. He said the government had granted permission to his company for Takaful in 2006 and now the company was targeting peoples who did not insure due to religious reasons, peoples who insured and were insensitive to religious reasons and those who currently did not insure at all.
He said the demand for insurance increasing with increase in per capita income. Whereas personal lines of insurance business (leasing, health, medicare) growing at a higher rate than other conventional classes.
He said Takaful Pakistan Limited was a joint venture of House Building Finance Corporation, Emirate Global Islamic Bank, Afif Habib Securities, Sitara Chemicals, Emirates Investment Group (Shajah) and Al-Buhaira National Insurance Co (UAE).