Regulatory Alerts2026-07-13
Added · Updated
Standard Re Controls and Procedures Establishing Takaful Insurance Fund
Licensed Takaful Insurance Companies must establish a Takaful Insurance Fund with an independent legal personality and financial liability distinct from the Company, registered with the Central Bank. The Fund requires a Charter approved by the Board, Internal Shari’ah Supervision Committee, Central Bank, and Higher Shari’ah Authority, mandating a 100-year duration and complete technical and financial separation between life and non-life Takaful operations. Companies are prohibited from benefiting from the Fund beyond the agreed Wakala Fee, and assets must be distributed to beneficiaries upon liquidation after discharging all obligations.
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