ZEP-RE Retakaful Window

Takaful is an Islamic insurance concept which is grounded in Islamic muamalat (banking transactions), observing the rules and regulations of Islamic law. This concept has been practised in various forms for over 1400 years.The reinsurance format is known as Retakaful.

In recognition of the important role Sharia compliant financial business now plays in the modern world, ZEP-RE set up a Retakaful Window in Khartoum Sudan in September 2009. The Window, which became operational in January 2010, is aimed at serving the needs of the Islamic community in Sudan and beyond.

At the time of setting up this Window, ZEP-RE became the first multinational company to do so on the African continent.
To this end, the company intends to addresse the specific needs of the Islamic societies by using its technical expertise in providing viable products that comply with the rules set by Shari’a commercial rules.

Principles of Takaful

Takaful is perceived as cooperative or mutual insurance, where members contribute a certain sum of money to a common pool.
The purpose of this system is not profits but to uphold the principle of “bear ye one another’s burden.” Commercial insurance is strictly not allowed for Muslims as agreed upon by most contemporary scholars because it contains the elements of uncertainty (Al-Gharar), gambling (Al-Maisir), and interest (Riba).

The main principles governing takaful and retakaful insurance are:

• Policyholders cooperate among themselves for their common good.
• Every policyholder pays their subscription to help those that need assistance.
• Losses are divided and liabilities spread according to the community pooling system.
• Uncertainty is eliminated in respect of subscription and compensation.
• It does not derive advantage at the cost of others.