KARACHI, Sept 26: Takaful Pakistan Limited, a leading Islamic insurance provider in the country, has been awarded ‘Shariah Compliance’ certification from its Shariah Supervisory Board (SSB).

“This certification opens up new horizons for Islamic insurance in Pakistan. Through this certification, we at Takaful Pakistan will strive to provide the people of Pakistan with an insurance alternative that goes hand in hand with the teachings of Islam,” said Captain M. Jamil Akhtar Khan, CEO of the company, in a statement issued here on Tuesday.

The word Takaful is derived from the Arabic verb Kafala, which means “mutual guarantee”. Takaful is a system of Islamic insurance based on the principle of Ta’awun (mutual assistance) and Tabarru (voluntary contribution), where the risk is shared collectively by a group. It is a pact amongst the group members who agree to jointly guarantee themselves against loss or damage to any one of them, as defined in the pact.

Incorporated earlier this year, Takaful Pakistan Limited after its formal launch in Ramazan will be the first professionally-managed Takaful company in Pakistan.

As a joint venture of local and international sponsors, Takaful Pakistan will operate with an initial paid-up capital of Rs300 million.