Noor Takaful, a leading operator in the Takaful segment of the insurance industry, has paid approximately N63.8 million surplus cash payments to its policyholders since its inception as an entity in 2017.
The Takaful Company has consistently paid a surplus to its insurance customers.
At the 2021 edition of the surplus distribution held Thursday in Lagos, the Chairman of the Board, Mr Muhtar Bakare, said the company was taking the lead in unlocking value in ethical insurance.
The recent payment was the third consecutive year that Noor Takaful has paid a surplus to its policyholders that made no claims.
He informed stakeholders that the company had paid N1.1 billion worth of claims to its policyholders at the ratio of 16 per cent, one of the best in the industry.
He thanked all the participants who entrusted Noor Takaful with their risks, assuring them that probity, transparency, and accountability will be managed.
The former Governor of the Central Bank of Nigeria, Khalifa Sanusi Lamido Sanusi, giving the keynote address, said the introduction of the Islamic financial services to the Nigerian market was a landmark event.
Sanusi noted that Nigeria was witnessing the growth of Islamic Finance as an alternative source of financial intermediation for the benefit of the economy. He described “Takaful” as an alternative form of the insurance that complements the conventional insurance practice in the country.
The former Emir of Kano admitted that conventional insurance has not penetrated the Muslims and believed “Takaful” would play a fundamental role in bridging the gap.
He added that “Takaful” was open to all and operated on the principles of equity, goodness, justice and alignment with the provisions of shariah.
The Vice-Chairman, Noor Takaful, Mr Aminu Tukur, giving a short presentation, said 861 customers participated in the 2019 takaful policy, out of which 611 did not make a claim and were the recipients of the surplus payments.
Breaking it down in 2019 about N12.05 million was paid as surplus for the 2017 policy period, N15.43 million was paid in 2020 for the 2018 policy period, and N36.30 million was paid in 2021 for the period covering the 2019 policyholders.
There was improvement in percentage rates as the 2021 surplus payments was 13 per cent, compared to 10 per cent in 2020 and 9 per cent in 2019.
Tukur attributed the success of Noor Takaful operations to a dynamic and robust underwriting process that entails effective risk management, appropriate pricing and the guidance of customers on their assets.
He assured the stakeholders that the company would continue to provide innovative and value-driven services competing with big players in the insurance industry.
The Managing Director of Noor Takaful Mr. Eyitayo Ogunluyi pointed out that the unique selling point of “Takaful” compared to conventional insurance was the fact the former pays surplus to its participants that do not make claims.
The event had representatives of the National Insurance Commission (NAICOM), Nigeria Insurers Association (NIA), and the Nigerian Council of Registered Insurance Brokers (NCRIB).
Highlights of the event were the presentation of cheques to the beneficiaries at the 2021 surplus distribution event to a cross-section of participants.
Noor Takaful covers the following areas of insurance provision; Marine, Fire and Special Perils, General and Motor vehicles.