Nigeria launches first Islamic insurance scheme to boost economy

Malam Muhammad Sanusi 11, the Emir of Kano Monday launched the first Islamic insurance in Nigeria, tagged ‘Jaiz Takaful Insurance’.

The Emir said at the event that the introduction of the system in Nigeria was a welcome development, especially as it would contribute towards boosting the country’s economy.

According to him, the policy, which will be guided by Sharia, is not only for the Muslim but also the non-Muslims who will have access upon registration.

“The Insurance Scheme will assist the small-scale business people to replace their lost property, especially whenever a disaster which we are not praying for has occurred,” the emir said.

Sanusi added that the scheme would assist the registered members to replace their lost property, either due to fire outbreak or accident, through their contributions.

He, however, called the Kano state governor, Abdullahi Ganduje to register all the state’s property, especially vehicles and houses, with the Takaful insurance company, as he also called on tricycle riders in the state to register their machines for the safety of their property, calling on the company to ensure that its members were treated equally and fairly.

Earlier in his presentation on the concept and operations of the insurance policy, the Managing Director of Jaiz Takaful Insurance Company, Alhaji Momodou Musa, said the scheme was a premier Shariah compliant general and family life insurance operator.

According to him, the insurance has been established to provide insurance in Nigeria with the insight of expansion in West Africa as an international leader in Takaful.

He said, “Takaful is a unique Islamic concept of Shariah compliance which the system is based on social solidarity, cooperation and mutual indemnification of losses of members.

It is a pact among a group of members who agree jointly to indemnify the loss or damage that inflict upon any of them out of the funds they donated collectively.”

Musa explained that “the contract of Takaful as a business venture is based on the Islamic profit sharing of ‘Al-Mudaraba principles.

In this regard, clients known as participants shall be entitled to earn returns on the contributions paid in consideration for their participation in Takaful products provided by Jaiz Insurance company, subject to the declaration of profit at the end of the financial year.