Non-Muslims 'may be interested in Islamic insurance'

By Tom Farley, Fri 15 Aug 2008 - Published in Car Insurance

Islamic car insurance and home insurance may appeal to non-Muslims because of its ethical nature, Salaam Halal claims.

The UK's first provider of Islamic insurance said that while in the main Islamic insurance policies are aimed at the Muslim community, they may prove popular with "a wider cross-section of consumers" as a result to the way the products work.

Islamic insurance uses the Islamic principle of Takaful - guaranteeing each other.

With conventional insurance, the insurer takes on all of the risk for all of the reward.

However, with Islamic insurance all policyholders agree to guarantee each other and make contributions instead of paying premiums.

The pool of collected contributions creates the Takaful fund.

Bradley Brandon-Cross, chief executive of Salaam Halal insurance, explained: "If there is money left in the shared pool at the end of the insurance term, that money will be given back to the consumer in the form of a reduced premium."

Salaam Halal is already offering car insurance and has plans to introduce home insurance before the end of the year.

News Categories

News Archive

News: Non-Muslims 'may be interested in Islamic insurance'