CRDB initiates Shariah-compliant ‘Takaful’ insurance
Grand Sheikh and Mufti of Tanzania, Dr Abubakar Zubeir (centre), speaks during the launch of CRDB’s Takaful insurance. Right is Commissioner of Insurance and CEO of the Tanzania Insurance Regulatory Authority Dr Baghayo Saqware. With them is CRDB Bank’s Chief Business Officer, Boma Raballa. PHOTO | COURTESY
What you need to know:
- In 2021, CRDB Bank established CRDB Al Barakah Banking, a dedicated unit for Shariah-compliant services. During this period, CRDB Al Barakah acquired over 135,000 customers and facilitated financing exceeding Sh125 billion, with significant support directed towards small and medium-sized entrepreneurs.
Dar es Salaam. CRDB Bank has announced the launch of Shariah-compliant insurance services, known as Takaful, catering to clients who adhere to the Islamic faith and others who prioritise religious principles in their financial dealings.
The Grand Sheikh and Mufti of Tanzania, Dr Abubakar Zubeir, commended the financial institution for its forward-thinking approach to recognising the needs of customers with religious considerations.
“Congratulations on this innovative step. Shariah compliance holds paramount importance for Muslim believers, yet there are also individuals from diverse faiths who appreciate and uphold its principles. With the introduction of Takaful insurance services, I believe CRDB will meet the needs of many. I urge my fellow Muslims and all adherents of Shariah principles to safeguard their assets and lives through Takaful insurance,” remarked Sheikh Zubeir.
Dr. Baghayo Saqware, Commissioner of Insurance and CEO of the Tanzania Insurance Regulatory Authority (TIRA), emphasised the necessity of innovative solutions to address barriers preventing Tanzanians from accessing insurance services, thus fostering sectoral growth and enhancing citizen confidence in financial planning.
“Takaful services cater to individuals of the Islamic faith dissatisfied with conventional insurance models involving interest. Takaful not only provides insurance but also represents an investment benefiting both clients and service providers. Leveraging its extensive branch network, CRDB Bank is poised to extend these services across the nation,” stated Dr Saqware.
In 2021, CRDB Bank established CRDB Al Barakah Banking, a dedicated unit for Shariah-compliant services. During this period, CRDB Al Barakah acquired over 135,000 customers and facilitated financing exceeding Sh125 billion, with significant support directed towards small and medium-sized entrepreneurs.
Boma Raballa, Chief Business Officer of CRDB Bank, highlighted the institution’s commitment to continual improvement, citing the previous year’s introduction of services facilitating Hajj and Umrah pilgrimages.
“As we strive to enhance our offerings, CRDB Bank, in partnership with Zanzibar Insurance Corporation (ZIC) Takaful, is proud to introduce Shariah-compliant insurance services known as Takaful,” announced Raballa.
Raballa elucidated the distinction between Takaful and conventional insurance, emphasising Takaful’s exclusion of interest payments and adherence to mutual assistance principles in the event of disasters. He added that profits from clients’ contributions are distributed according to procedures stipulated by the Takaful company.
“Our collaboration will deliver general insurance services encompassing vehicle, home, fire, business, transportation, and machinery insurance,” Raballa affirmed.
Said Abdallah Basleym, CEO of ZIC Takaful, expressed optimism about the partnership’s potential to extend Takaful services to a broader segment of the population.
“We believe this collaboration will significantly expand access to Takaful services. We remain committed to collaborating with stakeholders genuinely interested in promoting these services for the benefit of every Tanzanian. Insurance represents a crucial avenue for protecting assets, businesses, and health, and every individual deserves access without impediments,” concluded Basley.
