Jaiz Takaful Insurance distributes N84.5m as directors talk up practice

BY ANITA OKORO

Jaiz Takaful Insurance Plc said it distributed the sum of N84.5 million out of the sum of N121.4 million it earned in the 2020 financial operating year to its customers, and stated that it is a practice that will eventually change the business of insurance in Nigeria.

Ibrahim Usman Shehu, managing director and chief executive officer of the insurer disclosed this in Lagos recently.

Shehu said the company in the year 2020 generated revenue from diverse sources as it recorded a N23 million surplus under motor insurance, N2.9 million surplus under agric insurance and N58 million under family insurance, making a total of N84.5 million altogether.

The CEO explained to public notice that Takaful is an Islamic alternative to conventional insurance products in which profits are paid to participants who made no claims during a calendar year and any Islamic or other activity can make an entrance to Takaful products.

He expressed appreciation to the National Insurance Commission (NAICOM) for signing for the distribution of the profit to take place.

“We bring value propositions to the table at Takaful. If you have any claim, we will indemnify you; if you don’t have any claim and there is a surplus at the end of the year, we will pay you the surplus based on the approval by the National Insurance Commission (NAICOM) and the principle of profit sharing. The benefits are enormous, including peace of mind. Our slogan is caring and sharing,” he explained.

Also, Abidu Yazid, chairman, JAIZ Takaful Insurance, said the company has demonstrated exemplary performance in exceeding key parameters in business results in its last six years of operation. “We spent the first few years of our life setting up our affairs, acquiring equipment and other facilities, engaging and training staff, sustaining our business, identifying partners and prospects and finally launching the business.

Yazid added that the company has continued to produce resilient financial performance. “The consolidated profit after tax saw an impressive increase in 2020 compared to 2019. The 2020 financial result reflects our intent to deliver a consistent surplus from takaful operation so that the policyholder’s interest is safeguarded while we continue to reward our shareholders’ interest. Participants’ takaful fund generated the net consolidated surplus of N121.4 million to our participants.”

Additionally, Sheikh Sulaimon Abou-Nolla, the grand chief imam of Lagos, sees Takaful insurance as a novel idea and good initiative for Muslims, adding that, “The initiative is about profit sharing and mutual cooperation; it’s also about Sharia compliance and that is what we are happy about.” He urged Muslims to take key advantage of the initiative, which is deepening financial inclusion as a major national goal to strengthen the country’s financial goal.

Meanwhile, Tajudeen Yusuf, president, Institute of Islamic Finance Professionals (IIFP), said the entire Islamic finance product introduced, delivered values. The objectives of the Shariah on the products are life, prosperity and wealth preservation and this is achievable because Takaful draws a clear line between the conventional insurance and the Islamic insurance.

“Those of us in academics have conducted a lot of research and read so many books. JAIZ Takaful is proving us right. That is why I will continue to pray for those Muslims who thought out of the box and devised Takaful Insurance,” he said.

Elsewhere, Jaiz Takaful Insurance Plc launched a mobile app at the event which will allow users to receive, and analyse feedback and communication in real-time, thus allowing the company to improve its product offering, after the successful introduction of a novel idea into the insurance industry. The company lauded the efforts of the state government as Sewanu Hundogan, permanent secretary, Lagos State Ministry of Finance, who to represented Governor Babajide Sanwo-Olu of Lagos State, said, “The encouraging participation shown by the number of people participating in the surplus sharing from Lagos is a clear indication of the willingness by Lagosians to key into the new system which is guided by Shariah.”