Nigeria: Insurance Commission releases takaful guidelines
Source: eWeekly Takaful | 01 May 2013
The National Insurance Commission (NAICOM) has issued guidelines for takaful as part of efforts to increase insurance penetration in Nigeria and boost the contribution of insurance to the national GDP.
According to a circular outlining the guidelines, all applicants seeking licences from the Commission to transact takaful business in Nigeria must possess the Certificate of Registration as a full-fledged takaful company in accordance with international best practice. In addition, such a company must have, as part of its name, words or terminologies that connote takaful operations.
The circular adds that the company 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. An investment policy for the participants’ risk fund should also be established.