Takaful ta'awuni

Takaful ta'awani (Islamic life insurance) programmes are virtually non-existent outside S.E. Asia. Bank Al-Jazira, a leading Islamic banking group from Saudi Arabia has recently introduced takaful ta'awani programme. The task of developing the program was difficult as it had only been done before in S.E. Asia and Sudan. Problems and issues that needed to be overcome included: approval of a Sharia Board, SAMA approval, devoloping takaful ta'awuni software, and using wakala contracts instead of mudaraba contracts. The takaful ta'awuni division utlilizes both shari`a-compliant and SAMA-approved bank Islamic mutual funds. The takaful ta'awuni products available are of a number of types: a retirement plan (savings and protection), a level-term protection plan, an awqaf plan (saving towards a charitable donation), corporate plans (groups of employees), and a number of others that are still awaiting SAMA-approval. Sales of products in their first five months in the market have exceeded