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Halal insurance company launches in the UK

30/ 7/2008

BRITAIN'S two million Muslims will now be able to take out motor insurance that complies with their faith, with the launch of Salaam Halal insurance, the UK’s first independent Islamic insurance operator in the UK.

Despite the UK insurance market being flooded with over a 100 insurance companies actively writing motor and property insurance, there has never been a real choice for Muslims who want the option of buying a product that is aligned with their faith, says the company.

Salaam Halal insurance will offer Shariah-compliant motor insurance  and have plans to launch a home insurance product before the end of the year.

In addition to offering a genuine choice to British Muslims, the products are also designed to appeal to the non-Muslim community who are interested in products of an ethical or co-operative nature, because of the nature of Halal insurance - known as Takaful.

This is a strucrure in which risk is shared between all policyholders  and allows participants to pay their contribution into a pool (Takaful fund). The pooled contributions are invested strictly in Shariah-compliant investments, which means funds will not be invested in any prohibited goods in Islam including alcohol, gambling or pork and any investment profits are distributed back to the Takaful Fund.

The fund is used to pay claims, and at the end of the year, if the Takaful Fund is over-funded it is then distributed back to policyholders as a participation discount on their next year’s premium. This will be in addition to any conventional no claim bonus.

In order to ensure that the insurance is fully compliant with Islamic law, all the activities and products of Salaam insurance are overseen by its Shariah Supervisory Committee - a group of internationally noted Shariah scholars who monitor and guide the activities of Salaam insurance to ensure that all investments, operational and administration activities are consistent with Shariah principles.

Said shairman of Salaam insurance Abdulaziz Hamad Aljomaih: "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."

Chief executive, Bradley Brandon Cross 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.

"Conventional UK insurance options are in conflict with the core beliefs of the Muslim faith and, as a result, give Muslims living in the UK no choice but to compromise their beliefs in order to follow the law of the land. The face of Britain is changing and it is the responsibility of British institutions to cater for such changes and welcome diversity. Salaam insurance is the first insurance provider to offer Muslims living in the UK a choice which gives Muslims the best of both worlds - a good deal on their insurance which is in harmony with their faith."

Policies with the group can be taken out online at www.salaaminsurance.com or by calling 0800 980 2454.

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