SECP allows UIC to launch window Takaful operations

SECP allows UIC to launch window Takaful operations News & Events The Securities and Exchange Commission of Pakistan (SECP) has allowed United Insurance Company (UIC) to launch Takaful operations. The notification issued by SECP in this regard said that UIC had been granted permission to launch window Takaful operations in respect of general Takaful products. Takaful is a type of insurance system devised to comply with the Sharia laws, in which money is pooled and invested. Commenting on the development, Mian Shahid, Chairman of United International Group of which UIC is a member company lauded SECP to permit conventional insurance companies to launch Takaful which is the Islamic alternative to mainstream insurance products. The decision of the government would help broaden the insurance base of as the public concern on the insurance being compatible with Shariah was barring growth of this sector, he added. Mian Shahid informed that after official authorisation UIC would venture into untapped areas and increase insurance penetration which was less than one percent of the GDP. Takaful has emerged as a Shariah-compliant tool for satisfying risk mitigation needs of the tens of millions of Muslims across the world. The western financial crises have developed interest of masses in the non-Muslim nations to study and subscribe to Islamic financial products. Earlier, only dedicated Takaful companies were allowed to underwrite Takaful products but now the conventional companies could begin to underwrite Takaful products after obtaining authorisation as “Window Takaful Operator” under the Takaful Rules 2012. The funds of Takaful in UIC would be segregated and separate accounts would be maintained under the window Takaful operations, he said.-PR

UIC Launching Pakistan’s First Window Takaful Operations

UIC Launching Pakistan’s First Window Takaful Operations News & Events The United Insurance Company of Pakistan Ltd. is Launching Pakistan’s First Window Takaful Operations in respect of General Takaful Products as specified under section 4(3) of the Insurance Ordinance, 2000 except the classes as specified under Rule 3(b)(iv) and (v) of the Insurance Rules, 2002. Z. H. ZuberiCompany Secretary

SECP building efficient Islamic financial system: Tahir Mehmood

SECP building efficient Islamic financial system: Tahir Mehmood News & Events ISLAMABAD: The SECP is striving to establish a comprehensive Islamic financial system to cater for the needs of people which are not inclined to use conventional financial products, a top government official said Saturday. Today, the Islamic financial industry has expanded beyond the traditional borders of the Islamic world into the major industrial economies to become an integral component of the global financial system, said Chairman SECP Tahir Mehmood. Speaking at inauguration ceremony of United Window Takaful Operator , the first window Takaful (Islamic insurance) operator in Pakistan, he said that SECP has permitted conventional insurance companies to launch Takaful operations which will result in rapid development of this sector. Tahir Mehmood said that the decision is having a positive impact on overall growth of the Islamic financial system in Pakistan paving way to the accelerated economic progression. He further added that the majority of Muslims abstain from buying conventional insurance products because of their belief shall benefit from Takaful, which would definitely accelerate Takaful penetration in Pakistan. Speaking at the occasion, Chairman UIG Group Mian Shahid said that evolving a dynamic and vibrant Takaful industry that is responsive and sustainable so that it can support overall economic growth is a challenge. The development of an Islamic financial system needs to include Islamic banking industry, Takaful industry and Islamic capital and money markets with strong linkages, interdependence and synergies, he added. Mian Shahid said that although Takaful has been in the market for long, it has yet to make significant inroads as the concept is clouded by unfamiliar terms and principles for commoners resulting in hesitancy. Despite competition with the deeply entrenched conventional financial markets, Islamic finance assets worldwide continued their upward trend to cross $ 2 trillion mark but meaningful cross-border alliances is an area unappreciated by many in the Islamic financial business, the insurance veteran said. Mian Shahid said that in absence of a viable Islamic capital market the adequate supply of quality financial instruments can be a difficulty, he observed. Shariah Adviser Mufti Zeeshan Abdul Aziz in his speech said that the market penetration level of overall insurance business is very low which that represents an enormous potential for Takaful operators. Islamic finance has shown strong resilience despite the slowdown in the global economy; in fact, global Islamic finance assets have doubled since the start of the economic downturn, he informed.

Change of Brand Name

Change of Brand Name News & Events United Window Takaful Operations introducing TAMEEM.

United Window Takaful: Leading Shari’ah-Compliant Insurance in Pakistan

United Window Takaful: Leading Shari’ah-Compliant Insurance in Pakistan News & Events It is a truly great blessing for us that to be followers of the perfect religion to have a complete set of guidelines and procedures in the form of the Shari’ah. Our world faces rapid social and economic changes. Life has become fast-paced and mechanical and business processes are innovative. Challenges lie ahead. However, our religion offers solutions to these new challenges if we simply follow its tenets and principles. In this era, insurance is essential for protection against any unforeseen occurrences that may befall life, property and valuables and other possible losses. Thus insurance becomes a major component in certain economies. Takaful is a new spectrum of risk management that has emerged in recent decades. It is based on the principles, features, and structures that set it apart from conventional insurance in the light of Shari’ah. Modern conventional insurance contracts are unacceptable in Islam as certain elements in it directly contradict the rules of Shari’ah. The Islamic concept to get protection against risk does prohibit any attempt to avoid risk altogether, however it does not prohibit the reduction of risk. The elements of uncertainty (gharar), gambling (maysir), and interest (riba) make conventional insurance products prohibited risk-sharing instruments for Muslims. In other words, the need of insurance is right, but its procedure is wrong. Takaful provides such coverage of losses, where members contribute money into a pool in order to “guarantee each other against loss or damage” and takaful explains how it is the responsibility of individuals to cooperate and protect each other’s interests. At present many takaful and window takaful companies are providing services approved by the Securities and Exchange Commission of Pakistan (SECP) and under the supervision of religious scholars or Ulema e ikram. The SECP has framed comprehensive rules for Takaful companies and window takaful operators are also bound to carry their operations according to these rules. SECP monitors the affairs of the Takaful companies. The United Insurance Co of Pakistan Ltd The United Insurance Company of Pakistan Limited was established on October 20, 1959 and its shares are quoted on Karachi Stock Exchange. The UIC were a composite company doing live and general insurances in West & East Pakistan (General and Life Insurance). In 1971-72, after the nationalization of life insurance, United Insurance has been in the business of general insurance. Under the dynamic leadership of the Chairman of United International Group, Mian M. A. Shahid along with the board of directors, the United Insurance Company has remained financially sound and professionally managed as the fourth largest general insurance company of Pakistan with the largest branch network of more than 110 branches all over the country. UIC has maintained its IFS rating of A+ as ascertained by PACRA. The Company obtained approval to operate as window takaful operator on August 18, 2014 from the SECP under Takaful Rules 2012 to carry on general takaful business comprising fire, marine, motor, engineering, miscellaneous, crop, livestock and health; with Halal statutory allocated funds from its paid-up capital of Rs 50 million. The apex regulator SECP directed through its circular to the insurance companies takaful, and window takaful operations to conduct trainings and organize workshops to raise awareness and overcome challenges that confront the takaful industry. UIC adopted SECP’s directives and has been regularly organizing training sessions and workshops for its management and sales force on a periodic basis. The financial highlights of The United Insurance Company of Pakistan Limited – Window Takaful Operations from August 18, 2014 to September 30, 2015, are summarized thus: The United Window Takaful Operations maintain re-takaful arrangements with the world’s renowned Re-Takaful Companies namely; Swiss-Re Takaful Ltd, Switzerland, GIC Re-Takaful, Dubai and Lubuan Re, Malaysia. On the basis of strong treaty arrangements, United Window Takaful is quite capable to hold big risks. There was indeed a time when there was no attraction in takaful business due to the unwillingness of the general public to obtain coverage through this mode. Investors were not interested in investment in takaful companies because of their limited businesses and relatively lower profitability margins with high cost. In 2014, the Government allowed insurance companies to act as window takaful operator. The interest of the insurance companies in window takaful operations is evident now as they continue to expand their operations in this business. The impact of the SECP’s decision is also clear as the takaful business market has rapidly improved and all its stakeholders i.e. the religious scholars, industrialists, government and the public; now exhibit rising interest in takaful. Therefore, it can be hoped that takaful shall continue to progress and that eventually it shall be at par with insurance. Hence, this is a great prospect for all insurance companies of Pakistan to come forward and seize the opportunity to enter this promising field. Those who will be quick to take the initiative now will soon be industry leaders.

Pak Suzuki and Tameem-United Insurance Window Takaful operations Sign MoU to Launch the Suzuki Insurance Program

Pak Suzuki and Tameem-United Insurance Window Takaful operations Sign MoU to Launch the Suzuki Insurance Program News & Events Tameem-United Insurance Window Takaful operations and Pak Suzuki have recently partnered to offer a comprehensive insurance solution, the Suzuki Insurance Program. This exclusive program, available at all Pak Suzuki dealerships, aims to provide Suzuki customers with added value and peace of mind. A Memorandum of Understanding (MoU) was signed on November 29, 2024, in Karachi by Mr. Raja Naeem Tariq, Executive Director of Tameem-United Insurance Window Takaful operations, and Mr. Ghulam Hussain Agha, General Manager of Business Development at PSMC.Tameem-United Insurance Window Takaful operations and Pak Suzuki have recently partnered to offer a comprehensive insurance solution, the Suzuki Insurance Program. This exclusive program, available at all Pak Suzuki dealerships, aims to provide Suzuki customers with added value and peace of mind. A Memorandum of Understanding (MoU) was signed on November 29, 2024, in Karachi by Mr. Raja Naeem Tariq, Executive Director of Tameem-United Insurance Window Takaful operations, and Mr. Ghulam Hussain Agha, General Manager of Business Development at PSMC. The Suzuki Insurance Program offers several key benefits: Online Policy Issuance: Quick and convenient policy issuance, enabling a “Walk-in, Drive-out Insured” experience. Authorized Repair Network: Access to Pak Suzuki’s authorized dealership network for efficient repairs. Genuine Parts Warranty: Assurance of using genuine Suzuki parts with a warranty. Streamlined Claims Process: A hassle-free claims experience. Competitive Premiums: Best-in-class premium rates.The program is currently operational at various dealerships, providing customers with both conventional and Takaful (Islamic insurance) options. By offering seamless services and comprehensive coverage, Suzuki aims to enhance customer satisfaction and loyalty.