Today sees the launch of Britain's first sharia-compliant insurance firm. Salaam Halal insurance offers Britain's 1.6 million Muslims FSA approved motor insurance policies in line with the Islamic legal code. The company uses Takaful principles which spread the risk between all policy holders, unlike conventional insurance policies which shift the risk from the policy holder to the insurance firm.
Policyholders' premiums are pooled then put into sharia-compliant investments which don't pay interest or involve alcohol or other prohibited products and services. The common fund is then used to pay any claims. If at the end of the year, the pool has a surplus the excess is passed back to policyholders through a discount on their next premium.
This is the latest product aimed at Britain's growing Islamic finance market, joining the Islamic Bank of Britain, Britain's first 100% Islamic bank and Lloyds TSB's range of Islamic finance products for businesses and individuals.
If the car insurance venture proves successful, Salaam, which offers services in English, Arabic, Bengali, Gujarati or Urdu, hopes to launch home insurance policies later this year.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment