Shari’a Supervisory Committee in Takaful insurance

Abstract

Takaful insurance is based on Shari’a supervision, that is, on the conformity of operations
performed by insurance companies practicing Takaful insurance operations with the
provisions of Islamic Sharia. The Shari’a Supervisory Board consists of the Shari’a
Supervisory Committee in the insurance company, which must set a Shari’a auditor, in
addition to the National Shari’a Board for Issuing Fatwas for the Islamic financial
industry, which is tasked to deliver a certificate of conformity of Islamic Shari’a Takaful
insurance products. This body is supposed to be established by an executive decree, or by
amending the presidential decree that defines the organization and functioning of the
Supreme Islamic Council and gives the authority to the council to establish this body. It is
also necessary that the members of the Shari’a Supervisory Committee be set to the
Insurance Supervision Committee at the Ministry of Finance and not to the company’s
general assembly, in order to ensure the independence of the committee members from
the company