Shariah Principles


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.


These requirements are reflected in the structure of the financial statements of the Corporation. In addition, the Articles of Agreement do not allow the distribution of surpluses either from Shareholders’ or Policyholders’ Funds until the accumulated reserves are five times the subscribed capital of the Corporation.


Shariah Principles All operations of ICIEC are in accordance with Islamic sharia. All regulations, rules, policies and all other insurance instruments are subject to close scrutiny, before their coming into force, by The Single Shariah committee of the Islamic Development Bank Group (IDB) which also acts as The Shariah committee of ICIEC . Thus, in carrying out its operations, the corporation observes the following principles.


  • Endeavors to achieve mutual co-operation of policyholders through their collective sharing of losses which any one policyholder may suffer.


  • Distributes the surplus that may accrue from the insurance and any reinsurance operations to policyholders after meeting statutory reserve obligations.


  • Excludes cover of contracts for the sale of goods prohibited under Shariah, as well as interest accruing from export credit or investment loans.


  • Removes or amends terms and conditions of insured agreements in case of contradictions with Shariah and.


  • Invests its own funds in accordance with Islamic principles.