Islamic insurance to benefit Pakistanis, experts say

ISLAMABAD – The Security Exchange Commission of Pakistan (SECP)’s move to push Sharia-compliant Takaful risk coverage in Pakistan is likely to benefit millions and to triple the percentage of citizens with insurance coverage, in which Pakistan ranks lowest in South Asia.

Islamic insurance can benefit those who do not subscribe to conventional insurance, which is forbidden by Sharia Law, Murtaza Mughal, president of Pakistan Economic Watch, told Central Asia Online.

“Increased focus on Islamic insurance can save the insurance industry from financial distress in case of any global financial crisis,” he said.

“The SECP is planning to allow about 38 to 40 ... companies in Pakistan to start Takaful insurance along with conventional insurance,” he said. Takaful insurance policies are based on Islamic financial laws that stipulate co-operative principles and shared risk among policy-holders and investors.