Gulf African Bank launches first Shari’ah Compliant insurance product in Kenya
Gulf African Bank, the first fully Shariah compliant bank in Kenya has moved to bump up its services with the first Shariah Compliant Insurance Premium Financing in the country.
Regular Insurance Premium Financing (IPF) provides businesses and individuals with short term loans to cover costs of immediate insurance premiums, spreading repayment over an agreed period of time. GAB introduces Shariah Compliant IPF, which enables the bank to enter into an agreement with the insurer and the insured where the bank will pay the full insurance premium of the insured immediately while operating under the Tawarruq model, which allows clients to raise money quickly and easily with non-interest benefits.
Speaking during the launch event, Gulf African Bank’s Managing Director Mr. Abdalla Abdulkhalik said, “This insurance solution offers a great deal of flexibility in both interest payments and offsetting of the principle. At GAB, we are leveraging our financial expertise to ensure our customers do not have to liquidate necessary assets or spend key funds as their policies will readily be funded by GAB. The policy will act as security for Gulf African Bank. Customers will also enjoy effortless renewals as agreed upon.”
Applicants of this product from GAB are set to enjoy unrivalled customer centricity, cost effectiveness and the ability to access additional credit as required with no origination costs, fixed facility costs for its entire duration and zero penalties for cases of early pay-off. Gulf African Bank will also act as the billing and collecting agent.
Abdirahin Haithar Abdi, Chairman Insurance Regulatory Authority lauded GAB for its innovative solutions that enable the insured to leverage their assets for other business critical needs other than the mandatory premiums which must be paid upfront by a policy holder.”