Oman: Takaful bill approved, a step closer to becoming law
Source: Middle East Insurance Review | Apr 2015
A draft Takaful Insurance Law has been approved by the State Council, in line with recommendations made by the Majlis al-Shura, or Consultative Assembly.
“We reviewed the recommendations made by the Majlis al-Shura in this regard. Many nationals who follow Islamic regulations and provisions in their transactions are asking the government to regulate the insurance fund according to Islamic concepts,” Eng Salim Al Ghattami, the head of the economic committee of the State Council, told the Times of Oman.
The draft of the Takaful Insurance Law includes 58 classified subjects in eight chapters, covering all aspects of the Islamic insurance operations.
Under Oman’s government structure, the Council of Ministers – the main executive branch – must refer draft laws to the Majlis al-Shura, which has to approve or amend them. Following this, the draft laws are referred to the State Council. The Majlis al-Shura and the State Council form Oman’s two chambers of parliament. After a bill is passed by both chambers, it must be approved and signed by the Sultan to become a law.
Mr Al Ghattami said that the takaful law is important especially as the Omani market enjoys an openness with the establishment of Islamic banks.
“The law guarantees a non-traditional mechanism in the insurance system that would grant the consumer more options to choose between the different services provided by the different insurance service providers in the Sultanate,” he said.