Nigeria: InsurTech launches motor takaful plan
Source: Middle East Insurance Review | May 2023
ETAP, which creates solutions and incentives to improve the automotive experience across Africa, has launched ETAP Takaful, a motor insurance product that is based on Islamic principles.
According to the company, unlike conventional insurance, ETAP Takaful is designed to redistribute funds to users and support social good in their communities. Policyholders contribute to a common fund to cover each other against damage and loss, and once a year, ETAP will collate all the remaining funds after claims and associated costs have been deducted and redistributed to policyholders, or to their chosen non-profit cause.
Policyholders can also receive their surplus via cashback or a discount on renewals.
Starting in Nigeria, users can now access the option on the ETAP app alongside other insurance options. They simply need to download the app, provide basic information about their car and driving history, and choose the level of coverage they require (daily, weekly, monthly, quarterly or annually).
ETAP’s technology allows vehicle owners to buy insurance in 90 seconds, complete claims in three minutes or less and get rewarded for good driving and avoiding accidents.
ETAP CEO and founder Ibraheem Babalola, said, “To drive insurance penetration in Africa, where less than 3% of the population own any kind of insurance, we need to design new products that meet the diverse needs of people across the continent. In a country like Nigeria where Muslims make up almost half of the 220m population, the vast majority of insurance products on the market are not an option to most Muslims because the way the policies are structured goes against their religious belief.” M