LONDON: Muslim drivers in Britain will now be able to get car insurance that abides by Islamic law.
Salaam Halal Insurance provides all the services that a conventional insurance company does, while obeying the teachings of the Koran.
It does not invest in any organisation associated with gambling, alcohol or pork. It is not allowed to take financial risks or speculate with revenue, but instead the risk is shared between policyholders.
The policyholders pay into a fund, which is then invested in Sharia-compliant ventures.
Any profits are ploughed back into the fund.
Claims are paid from the pooled sum and surplus cash is distributed as discount for the following year’s premium. This is in addition to any conventional no-claims bonus offered like standard companies.
The company, a first of its kind, has a shareholder-owned parent company and is hoping to entice Britain’s 6 lakh Muslim car owners.
Peter Staddon, of the British Insurance Brokers’ Association, said “It’s exciting to see a completely new product on the market. And I think there will be many people — Muslim and non-Muslim — who will want to switch to a company that does not invest in weapons, alcohol or gambling.”
A committee of three independent Muslim scholars monitors the activities of the firm.
Salaam Halal says its premiums are in line with others in the industry and that it is able to match its bigger rivals. Headquartered in London, it operates a call centre in Greater Manchester where customers can speak to operators in English, Gujarati, Urdu, Hindi, Bengali and Arabic.
Until now it has targeted the Muslim community through Islamic publications and on billboards, but it hopes to attract customers of all religious backgrounds with its business model.
6 months ago