March 25, 2010 by Daryl-Lynn Carlson
The United Kingdom is launching its first-ever Islamic insurance group that will provide Sharia-compliant services.
The Principle Insurance Company, trading as Salaam Halal, announced it will start with automobile coverage offered to1.6 million Muslims living in Britain.
In compliance with Sharia law, policies will have the risk spread amongst all policy holders in a more communal context, and premiums will be paid into a fund that will be invested in enterprises that are also Sharia-compliant.
“Salaam Halal insurance is the UK’s first dedicated Islamic insurance provider set up to provide Islamic insurance based on the Sharia principle of Takaful,” the company announces on its website. Takaful means ‘mutual’ assistance in Muslim terms.
“Now you can have great value insurance, without compromising the principles of your faith,” the company states.
Services will be offered in several languages catering to the Muslim population that hails from all parts of the globe.
The UK is an Islamic financial hub, with Sharia-complaint financial services growing in Britain.
Bradley Brandon-Cross, the Chief Executive of the British Islamic Insurance Holdings (BIIH) that sponsors the new service, told the London Times this week, “The Muslim faith states that, because of various product features, conventional UK insurance options are in conflict with Islam – and this creates a dilemma for British Muslims.”
Here in Canada, there are upwards of 580,000 Muslims, a number that is expected to grow to more than 1.4 million by 2017, according to the 2001 census on population by religion.
This story was originally published by Canadian Insurance Top Broker.