Operators turn in applications for Takaful Insurance licences

Operators seeking the licence to underwrite Takaful Insurance have continued to turn in their applications to the National Insurance Commission (NAICOM).

It was gathered from a source at the Commission, that applications have been received from many operators while those who meet the stipulated criteria would be considered.

Efforts targeted at knowing the number of applications that have been received failed, as the individual said the process is still ongoing.

He noted that interests have been received from underwriters and the general public, adding that NAICOM would through the licensing demystify insurance practice, making it possible for operators to operate at the grassroots.

NAICOM, in April this year, released the guidelines on Takaful Insurance which it said is in line with the provisions of the 1997 Insurance Act, and aimed at complementing the current drive for financial inclusion to increase penetration.

A circular signed by Ibrahim Hassan, deputy commissioner for Insurance (Technical) NAICOM, noted that with the guidelines, all intending applicants seeking license from the Commission to transact Takaful-insurance business in Nigeria must possess the followings: Certificate of Registration as a full-fledged Takaful-insurance company in accordance with international best practice, adding that such a company must have, as part of its name, words or terminologies that connote Takaful operations.

Hassan said the interested companies must maintain a minimum deposit in a non-interest financial institution at all times and that the provision for the establishment of an Advisory Council of Experts (ACE) must be made in the articles of the Company and there should be establishment of investment policy for the participants’ Risk Fund.