MUSCAT: During an extensive discussion, the State Council yesterday approved the draft Takaful Insurance Law referred to it by the Council of Ministers and the report which was prepared by Majlis Ash'shura and the State Council Economic Committee concerning that law. Out of 58 articles, 46 articles have been ratified in compliance with the views expressed by the government and the Majlis Ash'shura, although some articles were not agreed upon.
The articles covering all economic activities thereby creating cooperative activities which are complaint with the Sharia and are based on participation and cooperation of a number of individuals to face potential risks through payment of subscriptions or financial contributions to be used as compensation in the event the risk covered by insurance occurred.
In his address to the council, Salim bin Said al Ghattami, Chairman of the State Council Economic Committee, pointed out the importance of the law at a time when the local market is expanding and also coinciding with the opening of Islamic banks.
The law ensures the formation of a non-conventional mechanism in the insurance system and this mechanism can give consumers a bigger space and more options in dealing with both conventional insurance system and Takaful.
Al Ghattami hailed the excellent preparation of the law so as to keep pace with similar laws enacted in Muslim and Arab countries.
This law is expected to contribute significantly in stimulating the economy by attracting investors and encouraging consumers who are interested in Islamic insurance system.
The Council's session was held under the chairmanship of Dr Yahya bin Mahfoudh al Mantheri, Chairman of the State Council.
The State Council will today complete discussion on items of its agenda. It will also discuss a proposal of the Social Committee on amending the Law on the Care and Rehabilitation of the Disabled issued by the Royal Decree No 63/ 2008.
Further, the council will also view a reply of the Council of Ministers on a report of the State Council on National Symposium on Best Community Practices held on April 15 and 16, 2014. Additionally, it will view some reports submitted by a number of members, besides a report of the secretariat general on activities of the council during the previous and current sessions.
© Oman Daily Observer 2015