The shariah-compliant cover represents a watershed moment for the insurance industry.
Britain's first-ever shariah-compliant car insurance product has been launched by provider Salaam Insurance.
The product offers motor insurance which is compliant with the tenets of the Islamic faith. Therefore, the nature of halal insurance, otherwise known as takaful, differs radically from other protection products in terms of the way in which risk is apportioned.
Mainstream insurance products work by shifting the risk from the policyholder to the insurer; in other words, if the customer has a car accident, the insurer pays - having agreed to take the financial risk to insure the customer in the first place. However, under takaful, all customers pay into a single pool, otherwise known as the takaful fund.
This fund is invested, and grows in value; all claims are then paid out from this fund. Salaam also assured customers that this fund would not be invested in "un-Islamic" products such as alcohol or pork, or in interest-bearing investments, as usury is banned in Islam.
The firm claimed that the insurance will have appeal outside of the muslim community, particularly among those customers who prefer to use ethical or co-operative products.
Mr. Abdulaziz Hamad Aljomaih, Chairman of Salaam insurance commented: "The launch of Salaam insurance - the first independent, fully shariah-compliant takaful operator available in this country - is a significant step for the growth of Islamic finance in the UK."
Bradley Brandon Cross, Chief Executive of Salaam insurance, added: "It is a disgrace that the financial services industry is lagging behind when it comes to recognising the different needs of the different cultures living in modern Britain today."
Around two million muslims currently live in the UK.
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Comments (7)
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sararainbow
2nd Aug 2008 20:56
Please, please, please - stop being apologist for a culture that exhorts violence s a God-given right, and subjugates women. It's not fun behind those doors...trust me... Read their holy book and some history on their revered founder. Love is not big on the list of exhortations. Apologising for an imperialistic culture which loves to hate what YOU represent - will lead to tears. READ and LEARN, NOW.
KamHussain
5th Aug 2008 18:52
Sara is obviuosly reading from an information source that is anti islamist. Maybe she should read some history on all continents concerned and then she would find how horific people have been in those times. sara should ask herself how long it has been since woman had rights in the western world. Islam is not a violent religion and neither is Christianity or Judaism. Its the people in politics globally who are to blame for the hatred in the world today. In my view, its just a modern day crusade with innocent people being hurt. As for all this islamic finance, its all a marketing ploy. people are not reading in to it enough to know its not much different to wahts already in the market. Just like those people who are being brain washed into terrorism and those who read garbage like Sara Rainbow.
gazbailey
7th Aug 2008 16:58
I believe thats rasist isnt it saying its for islamics only being white is the minority now and we cant even call a blackboard a blackboard anymore stupid.Political correctness gone mad religion causes wars and there isnt a god simple. people with inteligence can see that.
TheVoiceOfReason
14th Aug 2008 23:41
Racisim is discrimination based on race, Islam is a belief system / faith and not race specific so it would not apply anyway.
I don't see any discriminatory statements here and in fact it states it would appeal outside the comminity.
Please read the words as they are and not your preconceptions of what they say.
Khalid
22nd Aug 2008 08:52
SaraRainbow--you are most ignorant!
Islam brought women the right to vote 1400 years ago. The UK allowed women to vote in the 1960s. Im not going to debate with you as going by the tone of your text you have already made your mind up like most ignorant people put out here.
I think sarah is not wrong, we will be free in our dealings and should be free of any racism in love.
But I think media is not much fare in this as well. because media is a business itself.
PeaceLove
16th Oct 2008 20:51
. This a great news for many people living in this country, and good article from Money.co.uk
btw peace and Love to everyone inhere .
