Green light from CSO for 7 Takaful insurance products

The Superior Council of Ulemas has just given the green light for 7 standard contracts that will govern the relationship between Takaful companies and their customers. These contracts relate to products such as death insurance, essential to cover participatory real estate financing or quite simply to protect loved ones financially in the event of the client’s death.

The CSO has also given its opinion of conformity for Takaful multi-risk home products, Takaful Life insurance contracts, and retirement savings.

The CSO also validated the general regulations governing advances or redemptions on savings contracts.

This new step should accelerate the arrival of Takaful products on the market. These products are compatible with the principles of participatory finance and operate according to a scheme where subscribers pay contributions in the form of donations, which are deposited in a Takaful Fund managed by a Takaful company. In the event of a claim, the Takaful Fund compensates the policyholders who have a right to the surpluses made by this fund when the contributions exceed the claims.

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