ETAP, an insurance technology company, has launched ETAP Takaful, a new ethical car insurance product that is based on Islamic principles.
ETAP, which creates solutions and incentives to improve the automotive experience across Africa, noted that the new product is designed to give back to policyholders and their communities.
According to the company, unlike conventional insurance, ETAP Takaful is designed to redistribute funds to users and support social good in their communities.
Policyholders contribute to a common fund to cover each other against damage and loss, and once a year, ETAP will collate all the remaining funds after claims and associated costs have been deducted and redistribute to policyholders, or to their chosen nonprofit cause.
This may include nonprofit organizations working towards ending homelessness, educational programs, healthcare initiatives for the bottom of the pyramid, human rights advocacy and orphanages.
Policyholders can also receive their surplus via cashback or a discount on renewals.
According to Ibraheem Babalola, CEO and Founder of ETAP, the global takaful insurance market is projected to reach $97.17 billion by 2030 and ETAP is the first African insurtech to enable the option on the continent.
