Entry into force of a decree of the Ministry of Finance, relating to the application of certain provisions of the Takaful insurance, after its publication in the Official Bulletin on October 11.
This long-awaited decree sets the terms of application and the elements relating to Takaful contracts, the management fees of Takaful fund managers and the terms of distribution of surpluses between policyholders.
According to this decree, contracts must mention a set of general conditions and special conditions found in insurance contracts, to protect the insured and the company.
It should be noted that the management fees to be levied by the companies, and for which there was a discord between the operators and the outgoing government, were finally stopped at 1%.
Companies can also withhold a percentage, fixed in advance, on the gains made on investment products while capping this percentage at 30%.
Sharing of surpluses
One of the peculiarities of Takaful insurance, and which can be a strong commercial argument for this form of insurance, lies in the sharing of technical and financial surpluses between the participants (insured).
Three modes were selected according to this decree:
- The first is in proportion to the weight of each participant in the fund.
- The second mode only allows the remuneration of participants who have not had any claims.
- The third mode only remunerates participants who have a claims / premiums ratio (S / P) lower than 100% in proportion to their participations.
Companies can adopt other modes on the advice of ACAPS (the sector regulator) and the Superior Council of Ulemas.
Fund participants may in no case receive more than their initial contributions when distributing surpluses.
Takaful Insurance has significant potential in Morocco in view of the trend of crowdfunding for housing which must be covered by this form of insurance.