News ID: 318536
Published: 0715 GMT December 06, 2021

Iran to provide Islamic insurance services for Sunni population

Iran to provide Islamic insurance services for Sunni population

A major Iranian insurance company decided to introduce an Islamic insurance system for the first time in the country to meet the demand of domestic market.

Iran’s Dana Insurance is to launch limited takaful insurance services for the country’s Sunni population after finance minister Ehsan Khandouzi said that there is a demand for the product in Iranian market, it was reported on Monday.

According to Dana Insurance chief Ebrrahim Kardgar, the company will introduce takaful for a first time in Iran.

“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 takaful insurance,” Kardgar was quoted by ILNA news agency.

Unlike conventional insurance, takaful policyholders can benefit from a pool of fund claims they have contributed to if it is left in surplus.

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, Press TV wrote.

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.

“Fortunately, a Sunni community fatwa was issued over the past few days endorsing the implantation of Islamic takaful insurance,” he said without elaborating who had issued the edict.

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 have an inclination to use takaful insurance. We are lagging behind some Muslim countries in this regard,” Khandouzi noted.

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