Jaiz Takaful Insurance Limited has shared a total sum of N152 million to participants/clients who did not suffer any incidents or make any claims in the 2021 financial year. The amount was shared with corporate entities and individuals. The company approved the sharing yesterday at its 2021 surplus sharing & broker’s/participants forum in Abuja.
The mechanism to distribute and allocate the surplus and profits to each participant takes into consideration Shariah considerations, equity among participants, as well as the practicality of the distribution. It is by Jaiz Takaful’s surplus management policy, approved by its advisory council of experts and the regulator, the National Insurance Commission (NAICOM).
Managing director/CEO of Jaiz Takaful Insurance Limited, Ibrahim Shehu said the “event demonstrates one of the unique Takaful propositions and proves to be another medal on our chest, being one of the leading Takaful operators in the country with a reputation for the highest levels of transparency and disclosure.”
Distribution of surplus to participants is seen as a reflection of the company’s professional commitment to the basic principles of Takaful, which is considered a duty towards the company’s participants.
The surplus is the net balance in a common pool usually shared among participants after the settlement of claims, adjusters’ report, accident engineers and all other claims are paid to those who suffered loss during the preceding year. All of that is net out. Annually the insurance firm distributes surplus for the previous year.
National Commissioner of NAICOM, Mr Sunday Thomas who was represented at the event advised the operators of Takaful Insurance to look inward and make sure that they do something different from generic TAKAFUL. “This is Abuja, I expect that given financial literacy, there is no other gathering that will be better than this so if the products are inclined towards the specific needs of the potential TAKAFUL participants, I think they will move the banner forward,” he stated.
He also stressed the need for the operator to collaborate with the regulator to deepen awareness creation to drive down financial inclusion in Nigeria.
According to Shehu, the takaful industry in Nigeria is presently a small but growing one, riding on the growth of Islamic financial services. The latest estimates as of 2022 place total direct Takaful premiums/contributions at approximately N8 billion. About half are written on non-family policies.
“Takaful remains the most viable and ethical insurance that offers enormous benefits to all members of society regardless of race, religion, ethnicity, or social status. Our proven unique value propositions are enticements for our participants. In the course of our sojourn, we have redefined the basis of insurance by delivering excellent services to both our Brokers and Participants and in the course also expanded the market share,” Shehu said.