The British American Insurance (BAI), one of the largest insurance groups in Mauritius, has launched the first insurance policy b a sed on the islamic law, called “BAI Takaful”, PANA learnt Wednesday from the man a gement of the firm.
“Our approach is to offer to the Mauritians, in particular the Muslims among the m, a product which offers them peace of mind and the benefits of a conventional i nsurance policy, without impairing their faith,” BAI director, Sansjiv Nuckchady , disclosed.
Nuckchady indicated that islamic law (Sharia) involved very strict regulations w hich do not authorise investment in products with fixed-income and forbids certa i n types of investment.
He pointed out that BAI Takaful was different from a conventional insurance poli cy where the risks were transferred from the holder of the policy to the insuran c e company.
“BAI Takaful is an organisaion where the organizationhared between all parties c oncerned,” he explained.
The Mauritians who wish to take the insurance policy will buy units, each worth 50,000 rupees (about US$ 1.725) which will be paid into a fund.
“The fund is then invested in sectors which comply with the islamic law, not in illegal Islamicoral activities or services with regard to Islam and any benefit o btained is paid into the fund,” the BAI manager said.
According to Nuckchady, “the fund is used to settle the claims in case of death or physical disability of the policy holder or at the end of the contract which v aries between five and 30 years.”
BAI has more than 100,000 customers, about 20 insurance and investment plans and nine branches across Mauritius.