10 months on, SHC restriction on implementation of Takaful rules remains
It’s been almost 10 months since the Sindh High Court restrained the Securities and Exchange Commission of Pakistan (SECP) from implementing Takaful Rules 2012 that allowed conventional insurance companies to sell Takaful products through separate windows. The court has yet to give its final verdict on a petition of five Takaful operators in which they contended that the provision allowing conventional insurance companies to start selling Takaful products is against Shariah law. If the court clears Takaful Rules 2012, up to 20 conventional insurance companies (life and non-life) are likely to introduce Takaful windows. The paid-up capital requirement for a conventional life insurance company under existing rules is Rs500 million and Rs300 million for a conventional non-life insurance company. The paid-up capital requirements for general and family Takaful companies are not different from their conventional insurance counterparts.