Cashback payment to policyholders boosts insurance penetration in Nigeria – Noor Takaful boss – Nairametrics
The surplus distribution extended to policyholders in the insurance sector is a significant milestone that has contributed immensely to unlocking the value in ethical compliance both for individuals and corporate organisations in Nigeria.
This was disclosed by the Chairman, Board of Directors, Noor Takaful Insurance Limited, Muhtar Bakare, in Lagos.
According to him, for the third year in a row, his company has announced the distribution of surplus (cashback) payments worth over N36 million to policyholders, who did not make claims, in line with its commitment to promoting ethical insurance in Nigeria.
He said, “A total of 621 participants including individuals, private and public organizations, banks and higher institutions of learning, would receive this surplus payment.
“The list of customers to receive surplus include BUA Group, Engee Pet Manufacturing Limited, Kano Agric Supply, JAMB, Modibbo Adama University – Yola, Sterling Bank and Jaiz Bank. Engee Pet Manufacturing will receive one of the highest amount worth N1.13 million.
“The surplus distribution extended to participants is a significant milestone and the gesture has contributed immensely to unlocking the value in ethically compliance insurance both for individuals and corporate organisations in Nigeria.”
The company has also announced the launch of a new product targeted at serving the varying insurance needs of its customers most especially in the retail market.
What you should know about surplus payment
The surplus payment, which comes as a result of the Win-Win model of insurance operated by Noor Takaful thrives on the pool of funds provided by the participants. Takaful is the non-interest finance insurance that seeks to serve a large market of uninsured Nigerians spread across different parts of the country.
His Highness, Khalifa, Muhammadu Sanusi II, also described the distribution of surplus as a landmark achievement not only for the company but Nigeria’s financial sector given that it represents the growth trajectory of Islamic finance in Nigeria.
While congratulating the company and its participants, Sanusi explained that Takaful insurance as a financial model remains an alternative and complementary system of financial intermediation for the benefit of Nigerians.
He said, “The concept and practice of the distribution of surplus is an added value proposition which is non-existent in conventional insurance, thus making Takaful very advantageous to its patronizers. You don’t have to be a Muslim to operate Takaful. It is an alternative to conventional insurance which complements all classes of clients without discrimination. The realization of the surplus distribution is a testament to the success in its underwriting activities.”
A total amount of N1 billion has, so far, been paid in claims to policyholders since inception.