Car Insurance Sun, Sep 7, 2024
Car insurance which abides by sharia rules
While there are 2 million Muslims in the UK, so far there has been no release of a car insurance which abides by the sharia rules of business. However Salaam Halal Insurance has now stepped forward with a car insurance which offers both cover, in line with UK laws, as well as abiding by the sharia rules.
Those who are familiar with sharia rules will know that the guidelines do not allow any form of gambling. Under current UK car insurance regulations the car owner pays a premium after which the risk of covering the cost of an accident, etc is passed over to the insurance company. Under a strict understanding of sharia rules this is seen as a gamble because one party could lose on the deal.
Under a concept called Takaful Insurance which was first introduced in Sudan back in the 1970s Saalam Halal Insurance will be offering a car insurance option based upon this concept. The idea is that all premiums are paid into a central pool which is invested across a wide array of investments which abide by sharia rules. The return from these investments is paid into the Takaful fund and used to cover any claims from those in the scheme.
Takaful is an Arabic word which means ‘guaranteeing each other’ and allows car insurance to be offered within the rules of sharia law.
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