Akij Takaful Life Insurance, BTMA and City Bank Sign Landmark Deal

Akij Takaful Life Insurance PLC has entered into a landmark tri-party agreement with the Bangladesh Textile Mills Association (BTMA) and City Bank PLC, marking a significant step forward in the expansion of Shariah-compliant insurance solutions within Bangladesh’s industrial landscape. The collaboration is designed to provide group life and personal accident takaful coverage for employees working in BTMA member organisations, thereby extending ethical financial protection to one of the country’s most economically vital sectors.

The textile industry remains the backbone of Bangladesh’s economy, employing millions of workers and contributing substantially to export earnings. Despite its importance, access to structured and Shariah-compliant risk protection for industrial employees has historically remained limited. This new arrangement seeks to bridge that gap by offering takaful-based insurance solutions that align with Islamic financial principles while addressing the practical protection needs of the workforce.

Under the agreement, Akij Takaful Life Insurance PLC will act as the takaful operator, assuming responsibility for underwriting and managing the group life and personal accident coverage. BTMA member organisations will participate as policyholders on behalf of their employees, ensuring that workers receive structured protection against unforeseen risks. City Bank PLC will serve as the service partner, facilitating the bancassurance framework and supporting efficient policy administration and service delivery, all in strict compliance with Shariah guidelines.

The agreement was formally signed at the BTMA office during a ceremony attended by senior representatives of the three institutions. Akij Takaful Life Insurance was represented by Mohammad Masuduzzaman Khan, Deputy Managing Director and Chief Corporate Business Officer. Brigadier General Md. Zakir Hossain (retd), Secretary General of BTMA, signed on behalf of the association, while Subir Kumar Kundu, Head of Products, Acquisitions and Chief Bancassurance Officer at City Bank PLC, represented the banking partner.

Beyond its commercial significance, the partnership reflects a shared commitment to ethical finance, social responsibility and employee welfare. Rooted in the takaful philosophy of mutual cooperation, shared responsibility and compassion, the initiative aims to foster a culture of collective protection within the textile sector. It also underscores the growing role of Islamic financial instruments in supporting inclusive and sustainable economic development in Bangladesh.

As demand for ethical and Shariah-compliant financial solutions continues to grow, this collaboration is expected to set a precedent for similar initiatives across other industrial sectors, strengthening financial resilience while reinforcing social solidarity.

Key roles and responsibilities under the agreement are outlined below:

This strategic alliance represents a meaningful milestone in Bangladesh’s takaful landscape, combining financial innovation with ethical values to safeguard the well-being of the nation’s industrial workforce.