Takaful insurance law in Morocco

Takaful insurance, which appeared in the 1970s, is a hot topic in Morocco. It finally appeared to complete the ecosystem of participative finance, because the adoption of the banking law n°103-12 allowed participative banks to exercise their functions without ruling on the texts relating to insurance in this matter. This has delayed the launch of participatory banks in Morocco because in order to offer participatory financing contracts, they need participatory insurance to cover them and their clients. Takaful participatory insurance offers the same guarantee as conventional insurance, subject to the objects and events considered haram and prohibited by Islam. Thus, the elements of a conventional insurance contract are also present in a Takaful policy, namely the risk, the premium and the insurance benefit. However, the operation of participatory insurance differs from that of conventional insurance because it is structured in two separate funds and has its own operational mode.