IRA Chief Executive Officer, Kaddunabbi Ibrahim Lubega
The regulations that will guide the establishment of Takaful, the kind of insurance that employs Islamic principles for members to contribute money into a pool system to guarantee each other against loss or damage have been submitted to the Ministry of Finance for endorsement.
This was revealed by Insurance Regulatory Authority (IRA) Chief Executive Officer, Kaddunabbi Ibrahim Lubega during an Iftar dinner where insurance regulators hosted Muslims who work for corporate companies.
Once they are out, he says the public shall be encouraged to open or start operating Takaful business something he anticipates will widen and deepen the insurance market, especially among the untapped targeted audience.
Takaful which is being mooted as an alternative to conventional insurance system has its main characteristic as being entirely based on compliance with the moral requirements as regulated by the religious law, the Sharia.
As part of the preparations for the establishment of this kind of insurance, Saul Sseremba, the Principal of the Insurance Training College said they have already introduced a course on Takaful for those pursuing diplomas in Insurance such that when the market is finally ready, they are guided by professionals who are well acquainted by its principles of operation.
He said the biggest difference between Takaful and other forms of insurance is that all members are shareholders such that in case of risk, compensation is got from the pool and cost is shared by all members.
However, it should be noted that pushing for establishment of Islamic Insurance started way back in 2016. Five years later, it’s still unclear when it will come into force for sure.