Source: Islam Online
Britain's first Shari`ah-compliant insurer was launched on Monday, July 28, offering policies in line with the Muslim faith and becoming the latest financial body complying with the rules of Islamic finance in the European country.
"Salaam Halal insurance is the UK’s first dedicated Islamic insurance provider set up to provide Islamic insurance based on the Shari`ah principle of Takaful," the new firm says on its website.
"Now you can have great value insurance, without compromising the principles of your faith."
Salaam Halal insurance uses Takaful principles, which are based on mutual cooperation in the sharing of risk and addresses key features associated with conventional insurance that is incompatible with Shari`ah.
People taking out a policy with Salaam Halal pay contributions into a pool, with that money then put into Shari`ah-compliant investments.
The central pool of funds is used to pay any claims that arise, and at the end of the year, if the pool is over-funded, the excess will be distributed back to policyholders through a discount on their next premium.