Islamic insurance 'may appeal to non-Muslims'

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Islamic insurance 'may appeal to non-Muslims'

Fri 15th Aug 2008

Non-Muslims may be interested in purchasing Islamic insurance due to its ethical nature, the UK's first such provider has said.

Salaam Halal, the first UK provider of Islamic insurance, works under Islamic law, offering the same level of cover as conventional insurance but under the Muslim principle of Takaful -"guaranteeing each other".

This means that all policyholders agree to guarantee each other and make contributions (Tabaru'a) instead of paying premiums, with the funds assessed each year.

If it is over-funded, policyholders will receive a discount.

Bradley Brendon-Cross, chief executive of Salaam Halal, said the policy could appeal to non-Muslims, citing "similarities with mutuality" and its "ethical nature".

While noting the insurance is targeted at British Muslims, who comprise 2.7 per cent of the UK population, Mr Brendan-Cross said the company expected it to be taken up outside the Islamic community.

Having successfully launched car insurance, Salaam Halal also intends to provide home insurance in the future.

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