Salam Takaful distributes surplus to 200 participants in Kano

Salam Takaful Insurance has reaffirmed its commitment to ethical and equitable insurance practices by distributing surplus funds to over 200 participants at an event in Kano.

The initiative, in line with the principles of Islamic insurance (Takaful), ensures that policyholders share in the financial surplus generated over the year.

Speaking at the event, Head of Marketing at Salam Takaful Food Insurance Company Limited, Yusuf Abdullahi Shaibu, described the programme as a promise kept to clients and a key tenet of Takaful, which promotes a win-win financial model.

“Unlike conventional insurance, where policyholders receive nothing if no claims are made, Takaful ensures that surplus funds are distributed back to contributors based on their participation. Today’s event is a testament to that commitment,” he explained.

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Shaibu also called on the government to explore the opportunities within Takaful insurance, emphasizing its potential for economic benefits and financial inclusion.

“Government institutions can greatly benefit from Takaful. Even if there are no claims, there is still a surplus that is redistributed, ensuring continuous financial benefits for participants,” he added.

Executive Director of Salam Takaful Insurance, Eyitayo Ogunluyi, disclosed that a N9.9m surplus was paid to INEQ, alongside distributions to other major clients like AA Rano and Michael Mines.

“This is a major milestone for us. We have kept our promises, and today, over 200 participants are receiving their surplus distributions. This is what sets Takaful apart, it is based on equity and fairness,” Ogunluyi stated.

He further emphasised that Takaful operates differently from conventional insurance, ensuring that participants benefit whether they make claims or not.

“In conventional insurance, if you don’t make a claim, you get nothing. But in Takaful, you either receive a payout for your claim or a share of the surplus,” he explained.

Ogunluyi also addressed misconceptions surrounding Takaful, particularly the erroneous belief that it is an Islamization agenda.

“Takaful has been in Nigeria for over seven years, and the country remains the same. It is not about religion; it is a business model rooted in fairness and shared benefits,” he clarified.

He further revealed that despite being a pastor, he has fully embraced Takaful insurance.

“I was the MD of North Takaful before joining Salam Takaful, and for the past seven years, I have never insured my property anywhere else. Takaful is for everyone, and I encourage all Nigerians to embrace it,” he added.