Pakistan plans to introduce Islamic Insurance (takaful)

Takful, the Islamic mode of insurance where the risk and gains are equally shared by the insurer and the insured will be introduced in Pakistan.

Shoaib Soof, director of Takaful Securities and Exchange Commission of Pakistan said:

He said that mode of insurance had been in practice in Sudan, which was the pioneer and was recently joined by Bahrain and Malaysia. He said Takaful companies for life and general insurance would soon be allowed to operate with a minimum paid-up capital of Rs500 million and Rs300 million respectively.

He said a three-member Sharia Board would oversee the working of these companies while SECP would be the watchdog.

He said 10 per cent of the paid-up capital of these companies would have to be deposited with the State Bank.