ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of September 12, 2009 No. 578

About approval of the Regulations on the organization of insurance by the Islamic principles (takaful)

For the purpose of implementation of presidential decrees of the Kyrgyz Republic "About pilot project of implementation of the Islamic principles of financing in the Kyrgyz Republic" of July 12, 2006 and "About further measures for implementation of the industry of Islamic financial services in the Kyrgyz Republic" of April 22, 2008 the No. 146 Government of the Kyrgyz Republic decides No. 373:

1. Approve enclosed:

- Regulations on the organization of insurance by the Islamic principles (takaful);

- the paragraph third Item 1 ceased to be valid according to the Order of the Government of the Kyrgyz Republic of 01.06.2017 No. 323

2. This resolution becomes effective after 15 days from the date of official publication.

3. To impose control over the implementation of this resolution on Service of supervision and regulation of the financial market of the Kyrgyz Republic.

Approved by the Order of the Government of the Kyrgyz Republic of September 12, 2009 No. 578

Regulations on the organization of insurance by the Islamic principles (takaful)

This Provision determines procedure for insurance according to the Islamic principles of insurance (takaful) in the territory of the Kyrgyz Republic.

Chapter 1. Objects, purposes and principles of Islamic insurance (takaful)

1. Object of insurance by the Islamic principles (takaful) is the valuable interest of insurers (participants) connected with the obligation of the insurer established by the civil legislation of the Kyrgyz Republic to indemnify the loss caused to life, health, material values of insurers in case of loss occurrence, provided by the insurance contract.

2. The main objective of insurance by the Islamic principles (takaful) consists in providing with the insurer guarantee of compensation of risks of the insurers provided by the insurance contract. Insurance agreement parties takaful can act in role as those who provide guarantee, and those to whom the guarantee is provided.

3. In the Kyrgyz Republic, along with traditional insurance, insurance by the Islamic principles is applied (takaful).

4. The basic Islamic principles of insurance (takaful) are:

- mutual provision of guarantees each other;

- use of the paid fees or their parts only in the transactions which are not forbidden by Sharia;

- use of the mechanism of the profit distribution allowing to avoid charge and receipt of interest income of granted loans and loans.

5. Insurance by the Islamic principles (takaful) in the territory of the Kyrgyz Republic is performed by the takaful-companies (insurers) having license for activities according to this Provision.

Chapter 2. The basic concepts used in this Provision

6. In this Provision the following basic concepts are used:

1) fee - the fee paid by the insurer in the takaful-company based on the insurance contract signed between the takaful-company and the insurer;

2) the beneficiary - person for benefit of whom the insurance contract is signed;

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