Pakistan: Province to launch takaful provider to run govt-funded life insurance scheme
Source: Middle East Insurance Review | Jan 2025
The Khyber Pakhtunkhwa (K-P) provincial government will establish a takaful company to operate a proposed universal life insurance scheme.
The comprehensive life insurance scheme, a flagship project of the K-P government, is set to begin in January 2025, reported the news network TNN, citing the K-P chief minister Ali Amin Khan Gandapur.
The life insurance scheme aims to provide financial security to vulnerable families. Per the scheme, families of deceased breadwinners will receive financial support if the death occurs in a government hospital or a health card-affiliated facility. Beneficiaries will be eligible for a cash payout of PKR1m ($3,593) if the deceased is under 60 years old and PKR500,000 if over 60.
The scheme will cost the provincial government an estimated PKR4.5bn annually, which the government will fully cover, sources told TNN.
The life insurance scheme is the second major social security initiative after the health card scheme called Sehat Card Plus. This is a micro-health insurance programme for all K-P citizens. The takaful company to be formed will also manage the health card scheme.
Located in Pakistan’s north, Khyber Pakhtunkhwa is its fourth largest province by land area and has a population of around 41m. It contributes 10% of Pakistan’s GDP. M