A new shariah-compliant car insurance product designed to give back to communities and policyholders has been launched in Nigeria.

The brainchild of insurtech start-up ETAC, ETAC Takaful will redistribute left-over funds annually to users and to social projects in communities.

Africa Business Communities reports that policyholders will contribute to a common fund, which will cover claims for damage and loss. Once a year, the remaining funds will be collated and redistributed to policyholders or to their nominated non-profit beneficiary.

Policyholders can also opt for a cashback or for discounts on future premiums.

Ibraheem Babalola, CEO of ETAP, says the product was developed because ‘in a country like Nigeria where Muslims make up almost half of the 220 million population, the vast majority of insurance products on the market are not an option to most’.

18 April 2023
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