News Column

UIC takaful operations

July 19, 2014

UIC Insurance has filed an application with SECP for permission to be granted for commencement of Window Takaful Operations under Takaful Rules 2012. The necessary changes in the Memorandum of Associations to include Takaful business have already been approved at the company's extra ordinary general meeting held recently.

Takaful is a co-operative system of reimbursement in case of loss, paid to people and companies concerned about hazards, compensated out of a fund to which they agree to donate small regular contributions managed on behalf by a Takaful Operator. It is defined as an Islamic insurance concept which is grounded in Islamic muamalat (Islamic banking), observing the rules and regulations of Islamic law.

The principles of Takaful are policyholders cooperate among themselves for their common good. Policyholder's contributions are considered as donations to the fund (pool). Every policyholder pays his subscription to help those who need assistance.

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Source: Nation (Pakistan)

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