General Takaful-Insurance: This is a short-term agreement between a Takaful-Insurance Operator and a Takaful-Insurance participant that provides financial compensation for specified losses such as theft, or damage, but excludes Family Takaful-Insurance.
The Guideline further provides for General Requirements, Code of conduct, and Establishment of Advisory Council of Experts (ACE) whose responsibility is to;
i. The review and endorsement of policies and guidelines related to the principles underpinning Takaful-Insurance. Specifically, the ACE is responsible for review and approval of the Takaful-Insurance Operating model, underlying contracts and supporting materials such as product manuals and marketing materials adopted by the Takaful-Insurance Operator, for the conduct of the Takaful-Insurance business.
ii. Formal compliance certification of every product that is to be offered by the Takaful-Insurance Operator.
iii. Reporting all cases of non-compliance to the Board of the Takaful- Insurance Operator with recommended remedial actions.
iv. Reporting to the Commission of all cases where the Takaful-Insurance Operator has failed to adequately address, or take remedial action for non-compliance.
v. Providing a formal annual sign-off and opinion on compliance in a Report of the ACE that is to be included in the Takaful-Insurance Operator’s annual audited financial report. The formal sign-off shall also be made easily available (including online) by the Takaful-Insurance Operators to provide stakeholders, particularly participants, with the assurance that the Takaful-Insurance Operators’ activities and products sold during the specified period have been in compliance. ACE members may place an adverse opinion, or highlight any concerns they have on the activities of the Takaful-Insurance Operator within their formal opinion.
vi. Assist or advise related parties to the Takaful-Insurance Operator, such as its legal counsel, auditors or other consultants on Islamic jurisprudence-related matters upon request.
vii. Providing support to the Takaful-Insurance Operator and participants in respect of questions or queries that may be raised regarding the Shari’ah (Islamic Law) compliance of products. Takaful-Insurance Operators and the ACE should ensure that adequate opportunities and suitable public forums are provided to address questions or queries from the general public interested in becoming participants.
viii. Issue recommendations on how the Takaful-Insurance Operator can fulfil its social role and promotion of Takaful-Insurance towards enhancing financial inclusion in Nigeria.
ix. Performance of any other duties assigned to it by the Board of the Takaful Insurance Operator.