Morocco: Takaful-related Bill passed unanimously by first chamber
Source: Middle East Insurance Review | Mar 2019
A draft Bill that would provide for takaful operations in Morocco has been voted on unanimously by the lower house of Parliament in early February.
The Bill will be sent next to the upper house, the House of Councillors, indicating that takaful could be launched in the country this year.
Takaful is seen as important to participatory finance, an embryonic industry in Morocco. There are already a number of participatory banks in the country, whose operations have, to date, been handicapped by the absence of Islamic insurance.
The Bill stipulates, among other things, that participatory banks have the exclusive right to launch family takaful operations, as well as takaful insurance for assistance and loans.
This will allow the banks and their clients to protect themselves through mortgage takaful. It will also open up the participatory savings market through bancatakaful and takaful investments.
The proposed law also provides for the possibility of takaful and retakaful transactions by insurance intermediaries, provided they have the necessary knowledge in the field.
Currently, work is being carried out on the implementing texts of the to-be-amended insurance law. Once the insurance code and its implementing texts are published, the regulatory authorities will process applications for takaful and retakaful licences. In addition, work on standardising takaful accounting and taxation is underway. M