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.
this article was on money . co . uk
can the ulema please look into this matter, if it really is sharia compliant. J'allah.