Ayady Takaful, the Islamic window of Allied Insurance Company of Maldives, introduced crop Takaful in March 2023 to provide coverage to farmers against losses from natural disasters. This protects farmers' production costs and promotes sustainable agriculture per Islamic finance principles. Crop Takaful compensates participants for losses or damage to crops like papayas, brinjals, and bananas. Ayady Takaful also offers other Takaful products like motor and health insurance. Currently, Amana Takaful Maldives is the only fully-fledged Takaful company in Maldives, while Ayady Takaful is the only Islamic window, as the country's insurance industry is regulated by the
Ayady Takaful, the Islamic window of Allied Insurance Company of Maldives, introduced crop Takaful in March 2023 to provide coverage to farmers against losses from natural disasters. This protects farmers' production costs and promotes sustainable agriculture per Islamic finance principles. Crop Takaful compensates participants for losses or damage to crops like papayas, brinjals, and bananas. Ayady Takaful also offers other Takaful products like motor and health insurance. Currently, Amana Takaful Maldives is the only fully-fledged Takaful company in Maldives, while Ayady Takaful is the only Islamic window, as the country's insurance industry is regulated by the
Ayady Takaful, the Islamic window of Allied Insurance Company of Maldives, introduced crop Takaful in March 2023 to provide coverage to farmers against losses from natural disasters. This protects farmers' production costs and promotes sustainable agriculture per Islamic finance principles. Crop Takaful compensates participants for losses or damage to crops like papayas, brinjals, and bananas. Ayady Takaful also offers other Takaful products like motor and health insurance. Currently, Amana Takaful Maldives is the only fully-fledged Takaful company in Maldives, while Ayady Takaful is the only Islamic window, as the country's insurance industry is regulated by the
Ayady Takaful, the Islamic window of Allied Insurance Company of Maldives, introduced crop Takaful in March 2023 to provide coverage to farmers against losses from natural disasters. This protects farmers' production costs and promotes sustainable agriculture per Islamic finance principles. Crop Takaful compensates participants for losses or damage to crops like papayas, brinjals, and bananas. Ayady Takaful also offers other Takaful products like motor and health insurance. Currently, Amana Takaful Maldives is the only fully-fledged Takaful company in Maldives, while Ayady Takaful is the only Islamic window, as the country's insurance industry is regulated by the
The Islamic window of Allied Insurance Company of the Maldives, Ayady Takaful, introduced crop Takaful on the 20th March 2023 by providing coverage to farmers against the loss of production costs for their crops/plants due to various natural calamities such as excessive rain, floods including tsunamis, landslides, windstorms and droughts. This type of Takaful is designed to protect farmers from financial losses by providing them with financial support for the cost of production in case of crop damage or loss. Crop Takaful provides a safety net to farmers and promotes sustainable agriculture, while adhering to the principles of Islamic finance. DR AISHATH MUNEEZA writes.
Dr Aishath Muneeza is the and other regulatory requirements It is also stated that in the event chairman of the Shariah to undertake business as insurers that the limit provided by Shariah committee at Alia and insurance intermediaries in the compliant re-Takaful operators is Investments. She can be Maldives. not sufficient to support the business contacted at muneeza. strategy of the Takaful operator, the aishath@gmail.com. Unfortunately, the MMA does not have Takaful operator under the advice of its any regulations to regulate Takaful and Shariah committee may be allowed to does not acknowledge the existence enter into reinsurance contracts with a Participants in crop Takaful would of Takaful operators in the Maldives conventional reinsurer, until such time be compensated for any loss or except for the Regulation for Life that proper re-Takaful arrangements damage suffered due to any of the Insurance Business and Family Takaful are available. aforementioned calamities. Crops Insurance Business on Prevention of covered in this Takaful product Money Laundering and Financing of However, in this regard, Takaful include papayas, brinjals, butternuts, Terrorism and a circular issued on the operators shall only seek reinsurance watermelons, pumpkins, cucumbers, 24th January 2018 on Takaful operators arrangements with conventional melons and bananas. The sum covered ceding to conventional reinsurance. reinsurers provided that the will be automatically calculated arrangement is made due to a matter of based on the selected crop type and In the aforementioned circular, a necessity. Necessity is defined here to harvesting land size. Takaful operator has been referred to include, among others, the following: and in this context, a Takaful operator the need to protect the liabilities of the Apart from crop Takaful, Takaful has been defined as a licensed insurer Takaful operator and does not include products offered by Ayady Takaful who is authorized by the MMA only the desire to increase market share include comprehensive motor Takaful, to carry out a Takaful business and or profit; the Takaful operator shall third-party motor Takaful, expatriate a licensed insurer authorized by the maintain documentary evidence that, plus Takaful, health Takaful, travel MMA to carry out a conventional despite reasonable efforts, the Takaful Takaful, hull Takaful and Hajj and insurance business which is also operator could not obtain re-Takaful Umrah Takaful. Ayady Takaful also permitted to operate as a Takaful arrangements for that risk; the Takaful offers both General and Family Takaful window. operator shall retain a reasonable products. percentage of the underlying risk; the It is further stated in this circular that assets covered in the portion of the Currently, there are five insurance Takaful operators are required to follow risk retained by the Takaful operator companies registered with the the principles of Shariah in conducting and the terms of the arrangement are Maldives Monetary Authority (MMA) their business, including when entering Shariah compliant; any commission in the Maldives and among them the into reinsurance arrangements and or other income received by a Takaful only fully-fledged Takaful company that in this regard, Takaful operators operator for ceding a Takaful policy to is Amana Takaful Maldives; Allied shall have arrangements, consistent a conventional reinsurer shall not be Insurance Company of the Maldives with sound Takaful principles, for re- recorded as income in the shareholders' is the only company with an Islamic Takaful of liabilities in respect of risks fund of that Takaful operator — such window to offer Takaful under its undertaken or to be undertaken by funds, if received, shall be transferred brand name, Ayady Takaful. the Takaful operator in the course of it to the participants' fund. carrying out the Takaful business. It is stated on the official website of However, from such incomes received, the MMA that currently there are 10 Similarly, a Takaful operator shall not a Takaful operator may recover from its insurance brokers and 57 insurance have a coinsurance arrangement with shareholders' fund an amount up to the agents registered and the insurance a conventional insurer for the risks actual administrative costs incurred in industry in the Maldives is regulated accepted by it in relation to Takaful acquiring that conventional reinsurance by the MMA under the authority contracts. A window Takaful operator policy; and the arrangement is provided in the MMA Act (1981). shall not participate in accepting risks reviewed annually by the Shariah The Insurance Industry Regulation under a re-Takaful or coinsurance committee of the Takaful operator to (2004) and insurance guidelines set arrangement where the direct policy ensure all considerations taken earlier out specific criteria for authorization has been issued under conventional are still relevant. insurance, or vice versa.
