Taliban suspend operations of insurance companies in Afghanistan

The Taliban on Friday suspended operations of insurance companies in Afghanistan until further notice.

In an official letter sent to insurance companies, the interim government announced the suspension of all activities of public and private insurance companies, Khaama Press reported.

The letter states that the spirit of the insurance industry is being discussed at the Academy of Sciences of Afghanistan to decide whether it is against Islamic practices or not.

The suspension spells doom for insurance companies that have invested and assumed financial risks in the country over the past 20 years of Afghanistan’s democratic and open market era.

Several private insurance companies, in addition to a public insurance entity, invested and assumed financial risks.

The Afghan economy went into crisis after the fall of the Afghan government to the Taliban on August 15 last year. Hundreds of businesses, organizations and projects have been shut down, Khaama Press reported.

The incumbent Taliban government in Afghanistan emphasizes Islamic norms but has yet to issue a written Islamic policy.

Insurance is practiced in almost all other Islamic countries for risk management purposes; however, in some Islamic states it is undertaken under the term Takaful, an Islamic insurance concept.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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