1. The terms of an insurance company and reinsurance company, wherever stated in these regulations, shall include the Takaful Insurance Company and the Takaful Reinsurance Company. The terms of insurance and reinsurance operations wherever stated in these Regulations shall also include Takaful insurance and Takaful reinsurance unless a special provision is stipulated or unless the context indicates otherwise.

2. The provisions of these regulations shall apply to:

(A) Reinsurance companies established in the State;

(B) Branches of foreign reinsurance companies.

(C) Reinsurance business ceded by an insurance company licensed and registered with the Authority.

(D) Accepted Reinsurance business by a licensed insurance company registered with the Authority.

(E) An insurance or reinsurance pool in which an insurance or reinsurance company licensed and registered with the Authority participate or an underwriting syndicate.

3.Protection and Indemnity Clubs (P& I Clubs) are subject to the rules issued by the competent authorities applicable to them, and to the instructions andRegulations issued by the Insurance Authority.

The Reinsurance Company may practice reinsurance operations in the insurance of persons and funds accumulation on the one hand and the reinsurance operations in the insurance of property and liabilities on the other hand. The Takaful Reinsurance Company may also practice family Takaful Reinsurance and General Takaful Reinsurance, provided that:

1. The practice of these operations of both types shall be among the purposes set forth in its Articles of Association.

2. It shall comply with the provisions of The Insurance Authority’s Board of Directors Resolution No (10) of 2016 concerning the separation between the insurance of persons and fund accumulation operations on the one hand and property and liability insurance operations on the other hand.

The reinsurance company may practice the Takaful reinsurance business provided that:

1. The practice of Takaful reinsurance in addition to the reinsurance operations shall be among the purposes set forth in its Articles of Association.

2. All its operations related to Takaful Reinsurance shall be compliant with the Islamic Shariah provisions.

3. It shall comply with the provisions of The Insurance Authority’s Board of Directors Resolution No (4) of 2010 Concerning the Takaful Insurance Regulations issued by the Authority to the extent consistent with Takaful reinsurance business.

4. It shall adopt complete technical and financial separation between the reinsurance business and Takaful reinsurance business.

5. It shall comply with the provisions of Insurance Authority Board of Directors’ Resolution No. (10) of 2016 concerning the complete separation between the two types of reinsurance.

The conventional insurance company licensed and registered by the Insurance Authority may practice the ceded and accepted reinsurance business,( treaty , facultative and facultative obligatory ) within and outside the State pursuant to the provisions and terms contained in these Instructions, and in particularly the following:

1. Ceding reinsurance operations (treaty, facultative and facultative obligatory) to reinsurance Companies or conventional insurance companies.

2. Accepting Reinsurance businesses ( Conventional & Takaful) treaty, facultative and facultative obligatory, provided that reinsurance operations shall be among the purposes set forth in its Articles of Association.

3 - The insurance company that wants to accept treaty Takaful reinsurance must comply with Article (39) of these Instructions, in addition to what is stipulated in the above sub-Article (2).

The Takaful Insurance Company licensed and registered with the Authority may practice the ceded and accepted Takaful reinsurance business,( treaty , facultative and facultative obligatory ) within and outside the State pursuant to the provisions and terms contained in these Instructions, and in particularly the following:

1. Ceding reinsurance operations (treaty, facultative and facultative obligatory) to Takaful Insurance Companies or Takaful reinsurance companies or to Insurance Companies or Reinsurance Companies.

2. Accepting the Takaful Reinsurance businesses (treaty, facultative and facultative obligatory) provided that Takaful reinsurance operations shall be among the purposes set forth in its Articles of Association.

3 - The Takaful insurance company that wants to accept treaty Takaful reinsurance must comply with Article (39) of these Instructions, in addition to what is stipulated in the above sub-Article (2).