The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is a member of the Islamic Development (IDB) Group. ICIEC was established on 1st August 1994 (24 Safar 1415H) as an international institution with full juridical personality.
The idea for the establishment of an entity to provide investment and export credit insurance for Islamic Countries originated from the Agreement for the Promotion, Protection and Guarantee of Investment among Member Countries of the Organization of the Islamic Cooperation (OIC).
"To be recognized as the preferred enabler of trade and investment for sustainable economic development in Member Countries"
"To facilitate trade and investment between member countries and the world through Sharia compliant risk mitigation tools"
ICIEC Takaful Model
In conformity with Shariah principles governing Takaful insurance, the Articles of Agreement of the Corporation (Article 28) requires that the Corporation maintains two separate funds:
The Policyholders’ Fund, which contains mainly the insurance contributions and recoveries from paid claims and from which the insurance operations expenses are disbursed;
The Shareholders’ Fund, which contains the paid-up capital and accumulated reserves and from which a deficit in Policyholders' Fund may be financed through a non-interest loan.
The overall governance of ICIEC is based on the following four-tier structure:
Board of Governors (BOG)
The BOG is composed of Ministers representing the Member Countries of the IDB. All powers of the Corporation are vested in the BOG. However, the BOG may delegate some of its powers to the Board of Directors of the Corporation (BOD).
Board of Directors (BOD)
The BOD, which is the same as the Board of IDB, is responsible for the general direction of the operations of ICIEC.
Chairman of the Board of Directors
The President of IDB is the ex-officio Chairman of the Board of Directors.
Insolvency of the obligor.
Failure or refusal of the obligor to pay on due date.
Currency inconvertibility and transfer restrictions imposed by the obligor's country.
Expropriation, confiscation or government intervention in the business of the obligor.
War or civil disturbance in the obligor's country.
Insolvency of the buyer/ Issuing bank.
Failure or refusal of the buyer to pay.
Refusal of the buyer to accept goods after shipment.
Cancellation of the contract arbitrarily by the buyer.
Currency transfer restrictions of the buyer's country / issuing bank's country.
Expropriation by the government of the buyer.
War or civil disturbance in the buyer/ issuing bank's country.