Takaful is expected to be launched in Morocco by June 2019, according to industry experts.
However, Mr Othman El Alamy, secretary general of the Supervisory Authority of Insurance and Social Security (ACAPS), in an interview, avoided mentioning a start date for takaful.
A Bill to introduce Islamic insurance in the country was approved by the Council of Government on 18 October. The industry is waiting for the legislative process to be completed.
Mr El Alamy said, “Following the recommendations of the Higher Council of Ulema (CSO) for the legal framework of takaful, a draft amendment to the Insurance Code (Law No. 87-18) has been drafted. This was adopted by the Council of Government and submitted to Parliament in addition to texts accompanying the Finance Bill 2019.
“The new draft amendment to the Insurance Code will, in all likelihood, be adopted with the 2019 Finance Act”.
Referring to implementing texts or regulations for takaful he said, “To allow this type of insurance to come into force quickly, we hope that the whole process of adoption of these texts will be completed just after the publication of the amendment of the Code.”
The draft texts are currently being discussed with stakeholders and will have to be validated by the CSO. Once the Code and its implementing texts are published, ACAPS will process applications from insurance and reinsurance companies wishing to offer takaful business.
In the meantime, banks undertaking Islamic business will have to operate with whatever is at hand. For murabahah real estate business, the banks can for the moment provide the financing without conventional cover. However, for murabahah auto loans, customers wishing to take out this financing are obliged to buy conventional motor insurance, because third-party liability insurance is mandatory for the use of any vehicle.
Mr El Alamy said the introduction of takaful will certainly have a positive effect on the insurance sector, as “many operators have expressed an interest to carry out this activity”.
At the same time, Islamic banking activities will contribute to increasing demand for takaful products. M