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Daily Insurance Industry News
Sunday 21st of January 2018
July 29, 2008

Principle launches Sharia-compliant motor insurance

by Gill Montia

Story link: Principle launches Sharia-compliant motor insurance

The UK’s first independent Islamic insurance group has been officially launched.

Principle Insurance Company, trading as Salaam Halal, will initially offer motor cover and aims to grow its business among the 1.6 million Muslims living in Britain.

The business is based in Cheadle and offers a multilingual service from its call centre.

Policies will be Sharia-compliant which in this case means that the risk is spread between all policyholders registered with the company, whereas conventional insurers move the risk from the driver to the insurer.

Policyholders will pay their premiums into a fund that will be invested in enterprises which have practices acceptable to Islamic law.

Any surplus accrued by the business will be returned to policyholders at the end of the financial year.

Salaam’s chairman, Abdulaziz Hamad Aljomaih, describes the launch of his company as a significant step for the growth of Islamic finance in the UK.

In recent years, the sector has been expanding rapidly and the UK is now considered the leading centre for Islamic finance, outside the Middle East.

 

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