Uganda is ready to adopt the Islamic insurance model, according to Dr Twaha Ahmed Kasule, a senior lecturer at the Islamic University In Uganda (IUIU).
“What we need is to start this model,” he said. The legislative framework for takaful has been drawn up and the Insurance Regulatory Authority could issue related regulations, reported Nile Post citing Dr Kasule.
At the same time, people have been receiving training in Islamic finance and banking. “At IUIU, we have graduated more than 200. This means the knowledge of Islamic insurance is already in the market,” Dr Kasule said.
Indicating regulatory support for takaful, Mr Bernard Obel, director of supervision at the IRA, said that Shariah-compliant insurance can be a game changer in driving microinsurance in Uganda.
Mr Obel added that the focus of takaful is on the poor in society and how they can use it in risk mitigation. He said that conventional insurance companies can also offer takaful. He stated that takaful is not only for the Muslim community but also for people of all faiths.
He also indicated that one company is about to meet the minimum requirements to be licensed to offer takaful products, adding that discussions are also underway with takaful operators from Sudan for them to offer this service in Uganda.
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