YANBU: Saudi tribes have known and practiced insurance long before insurance companies introduced modern forms of financial protection in the Kingdom.

“Life, health, car and other forms of insurance are fairly new to Saudi society. However, this sort of social Takaful (solidarity) has long existed among Saudi tribes and is known as the ‘Tribal Fund.’ The fund provides financial support to tribe members at times of need such as when a serious accident happens,” Sheikh Abdullah ibn Jabir Al-Mastouri of the Sulaim tribe told Arab News.

“This fund has been known to all tribes in the Kingdom long before insurance companies came to our country. It is as old as the tribes themselves. It was and is used to provide financial help to needy members of tribes and to encourage them to stand by each other at times of crisis,” he added.

Al-Mastouri said each member of the society contributes a certain amount of money to the fund in either a complete payment or installments on a monthly or yearly basis. “This money would then be used to help tribe members.”

Al-Mastouri said the resources of the fund are also used to pay blood money. He added that money would be kept in a bank in the name of a trustworthy tribe member.

“In this way, tribe members would share the burden of other people’s difficulties and display a true spirit of solidarity,” he said, adding that the donations per person may not exceed SR500, depending on the number of people in a tribe.

Sheikh Maghli Al-Mansouri, the treasurer of a Saudi tribe, said it is binding on each and every member of a tribe to participate in the fund. “Those who refuse to contribute would not benefit from the fund when they face any difficulty,” he added.

He, however, said members of a tribe are at liberty to help such people on an individual basis. Sheikh Nafie Al-Lahawi, one of the chiefs of the Sulaim tribe, said the tribe is divided into eight branches and that each branch has its own fund. “In times of need, the entire tribe would stand together,” he added.

Abdullah Al-Alwani said he has nothing to do with the insurance companies and depends on his tribe when a need arises. “Although I have not been involved in a traffic accident so far, I am sure my tribe would stand by me if anything happens to me,” he said.

Al-Alwani described the fund as a “true expression” of solidarity and a halal-form of insurance.

Adil Al-Salami lauded the idea of the tribal fund and said the larger the tribe the more money its fund would have. “Tribes should also invest money in profitable projects. The fund is not only an insurance firm but also a tool to alleviate poverty among tribe members,” he said.