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Arabian Scandinavian Insurance Co. switches to Takaful system

  • 09 March, 2015

Transformation process will be carried out without any alteration to the customers' rights

Dubai 09 March 2015: The Arabian Scandinavian Insurance Co. PLC - Takaful (Ascana Insurance) has recently announced the transformation of the company's services and activities from the traditional approach to the Takaful insurance system. This has been implemented in order to provide Sharia-compliant insurance products.

The company said in a statement that it had made the required modifications to complete the transformation process required to practise its business on a cooperative basis. It will provide Islamic insurance products called Takaful, which is a system that offers promising prospects for growth and development for insurance companies in the region.

Ascana Insurance added that the subscriptions of all customers will be transformed to the Takaful insurance system without any alteration to their rights. The renewal of any contract between the company and its customers will be conducted in accordance with the rules and regulations of the Takaful insurance system in future for those who wish to adhere to it.

The company reported that it is ready to deal with any objections raised by its customers with full transparency and clarity. The company is also willing to make the necessary adjustments should any customers be unwilling to transform their subscriptions to the Takaful insurance system.

The statement also stressed the customers' complete cooperation with the company, and the importance of their understanding of the transformation, which will have a positive impact on everyone involved.

Experts and officials within the Islamic insurance sector say that Takaful is booming in the region, and is expected to grow between 30 and 40 percent per year, over the next 3-5 years. They also anticipate that the size of the sector will be increased by approximately $ 11 billion by 2015. The UAE in general and Dubai in particular, is very keen to achieve its vision to be the 'Capital of Islamic Economy'.

The idea of ​​Takaful insurance is based on the commitment of a group of individuals called policyholders to pledge to compensate those who sustain damage, once the damage has been verified. The Takaful insurance companies manage funds of those individuals, and invest them in Sharia-compliant windows in favourable fashion.

The Takaful (Islamic insurance) companies are committed to separating the funds of subscribers from those of shareholders. At the same time, these companies engage in different investment activities for the benefit of the policyholders' funds, and spend money on the latter's expenses.

For further information contact:
Husny M. Deyab
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Mobile: 050 - 3110122

© Press Release 2015