Gulf African Bank has introduced a Shariah-compliant insurance premium financing.
Managing director Abdalla Abdulkalik said the bank would allow individuals and entities to borrow the cash required to pay for insurance premiums.
“At Gulf African Bank (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,” he said.
“Customers will also enjoy effortless renewals as agreed upon.”
Industry regulator Insurance Regulatory Authority makes it mandatory for premiums to be paid upfront by policyholders.
The insurance solution will enable the bank to enter into an agreement with the underwriter and the insured whereby the lender will pay immediately and in full the insurance premium of the insured.
The product will enable the insured to leverage their assets for other business critical needs.
Payments will be spread over an agreed period and the bank will act as the billing and collecting agent.