FNB to start offering Takaful insurance

FNB Islamic Banking has launched Takaful an alternative to conventional insurance which is compliant with Shari’ ah values and beliefs. Just like regular insurance it also reimburses customers in the event of –loss or damage while customers have to make regular contributions, usually in the form of premiums, to subscribe to this protection.

Takaful from FNB Islamic Banking offers an alternative to short-term insurance which caters for commercial, vehicle, personal, body corporate and household cover. In time, this cover will extend to other forms of Islamic compliant insurance, FNB said.

“We welcome the Takaful offer as it essentially now joins our bouquet of highly competitive products and services that include world-class Islamic transactional banking, asset finance and an extensive range of Islamic investment options. We now can truly claim to be a one-stop Islamic financial services shop,” said Amman Muhammad, CEO of FNB Islamic Banking.

 “By expanding our offering to include Takaful, we are now able to finance assets and also allow for their protection by using credible and compatible insurance products which are in conformity with the principles of Shari’ ah. Takaful, as with all of our other Islamic financial services, are available to Muslim and non-Muslim customers alike,” adds Muhammad.

FNB is not the only major bank in South Africa to offer Takaful insurance. The Takaful (Islamic Insurance) product was launched in South Africa in 2003 and in 2011 Absa acquired the business of Takafol South Africa.