The National Insurance Commission (NAICOM), said it would adopt window operations and fully fledged platform measures to ensure public participation/ investment in the Takaful Insurance.
The National Insurance Commissioner, Mr Fola Daniel, made this known during an interview with newsmen in Abuja last Thursday.
“We have two ways of marketing takaful; we have window operation, meaning that existing insurance companies can do takaful side by side with conventional insurance.
“We also have fully fledged platform for takaful insurance; so people who just want licence to do takaful insurance alone can do that.”
He explained that takaful insurance was the opposite of conventional insurance, if put in the lay man’s language.
He said conventional insurance was all about insuring assets without losses.
“But with the takaful insurance, if you did not suffer losses at the end of the year, the extra money that is generated by the insurance company is given back to the contributors.
“A lot of people that are insuring believe that conventional insurance is not equitable because if there is no loss, the insurer goes away with all the money.
“So; you do not lose all with takaful. In a year, even when you suffer losses, as long as you have contributed to that fund, there is still the prospect, the possibility that you can still take something away.
“That is why it is attractive to Muslims and Christians alike”, Daniel said.
He added that the concept was a bridge that cuts across all the segments of the society. So; I expect that more and more people will buy into the insurance.
“I believe that insurance will become a household purchase and people will want to buy insurance naturally.
“In other jurisdictions where takaful insurance has been introduced, the acceptability is very high; it is significantly higher than conventional insurance.
“In South Africa, takaful is doing very well. It is highly embraced even in America; so, we expect that the Nigerian experience will not be different.”
