The Emir of Kano, Muhammad Sanusi II, has launched the first Islamic insurance firm in Nigeria, known as 'Jaiz Takaful Insurance'.
At the launching event in his palace, the emir said that the introduction of the system in Nigeria was a welcome development, especially as it would contribute towards boosting the country's economy.
He said the policy, which will be guided by Sharia, is not only for Muslims, but also for non-Muslims.
"The Insurance Scheme will assist the small-scale business people to replace their lost property, especially whenever a disaster which we are not praying for has occurred," the emir said.
Mr. Sanusi added that the scheme would assist the registered members to replace their lost property, either due to fire outbreak or accident, through their contributions.
He also called on states, especially in the North to register all the state's property, especially vehicles and houses, with the Takaful insurance company.
Earlier in his remarks, the Managing Director of Jaiz Takaful Insurance Company, Momodou Musa, said the scheme was a premier Shariah compliant general and family life insurance operator.
According to him, the insurance has been established to provide insurance in Nigeria with the insight of expansion in West Africa as an international leader in Takaful.
He said, "Takaful is a unique Islamic concept of Shariah compliance which the system is based on social solidarity, cooperation and mutual indemnification of losses of members. It is a pact among a group of members who agree jointly to indemnify the loss or damage that inflict upon any of them out of the funds they donated collectively."
Mr. Musa explained that, "the contract of Takaful as a business venture is based on the Islamic profit sharing of 'Al-Mudaraba principles. In this regard, clients known as participants shall be entitled to earn returns on the contributions paid in consideration for their participation in Takaful products provided by Jaiz Insurance company, subject to the declaration of profit at the end of the financial year.''
Also speaking at the occasion, the Chairman, Board of Directors of the Company, Umar Abdul Mutalab, said Jaiz Takaful Insurance Plc was established to deepen insurance penetration in Nigeria. He explained that unlike conventional insurance companies where insurance consumers are just clients, participants in Takaful Insurance are policyholders.
The ceremony was well attended by Kano based Islamic scholars, business communities and associations, traditional chiefs among others.