The study aimed to identify the extent to which compliance procedures are applied to Islamic insurance operations in the branches of Takaful insurance in Libyan insurance companies, in addition to identifying the difficulties that these companies face in implementing these procedures in Takaful insurance branches.  A random sample was selected from the employees of the Sharia Supervisory Board and the Sharia Audit Department in the branches of four Takaful insurance companies operating in Tripoli (Libya Insurance Company, Takaful Insurance Company, Sahara Insurance Company, Caravan Insurance Company), which included officials and employees working in the departments and sections of these Departments, and (52) questionnaires were distributed, with a response rate of 67 % . In order to achieve that, the researchers followed the descriptive - analytical approach, and used a questionnaire as a tool for data collection, and it was concluded that the management of the participating companies applies the procedures for compliance with the Sharia audit of Islamic insurance operations in the branches of Takaful insurance, according to the following order: firstly, ensuring that the documents and agreements approved by the Shariah Board have been completed. Including them in the system and making sure that the documents and agreements listed in the system are approved by the Shariah board. Secondly, making sure that the procedures prevent insurance for a forbidden purpose, and lastly, making sure that the accounts of participants (document holders) are separated from the company’s accounts in the rank, and the rest of the procedures followed closely, and the opinions of the participating companies regarding the second hypothesis, there are difficulties that prevent the implementation of the procedures for compliance with the Sharia audit of Islamic insurance operations are neutral.

Keywords: Sharia audit - Islamic insurance - Takaful insurance.