Takaful insurance to make debut in Iran

December 7, 2021 - 17:33

TEHRAN – Iran will launch limited takaful insurance services for the first time after finance minister Ehsan Khandouzi said that there is a demand for Islamic takaful insurance.

Ebrahim Kardgar, Dana Insurance chief, said that the company will introduce takaful for the Sunni population in the country.

Takaful services would specifically target Iran’s Sunni population of less than 10 million.“The (Iranian) Insurance industry has lagged behind in this field and based on talks have had with the finance ministry it has been agreed that we launch Islamic insurance,” said Kardgar, according to ILNA news agency.

Unlike conventional insurance, takaful insured can benefit from a set of claims of the fund in which they have participated, if it remains in excess.

The system has not been used in Iran mainly over deficit concerns and also because religious authorities in the Shia-dominated country have not fully endorsed the system.

Takaful is currently the dominant system of insurance in Malaysia while it has been introduced in limited forms in some Muslim and non-Muslim countries.

Kardgar said that Dana’s takaful services would specifically target Iran’s Sunni population of less than 10 million.

He said that Sunni clerics in the country had approved the use of the insurance service by members of the community.

The announcement comes two days after Khandouzi said that insurers in Iran should respond to a demand for takaful in the country’s domestic market.

“A group of the customers of the insurance industry has an inclination to use takaful insurance. We are lagging behind some Muslim countries in this regard,” said Khandouzi.