The UK’s first-ever insurer to comply with Islamic law has been launched today to enable Muslim motorists to secure cover for their vehicle. Salaam Halal insurance is targeting the 1.6 million British Muslims with its products, which differ from other cover in that the risk is spread between all policyholders registered with the company. Standard non-Sharia-compliant companies move the risk from the driver to the insurer. The policy works through the investors paying money into a pool, which is then invested in companies which do not contravene Islamic tenets, with money that is surplus at the end of the financial year is then distributed among policyholders. Abdulaziz Hamad Aljomaih, the chairman of Salaam insurance, told the AFP news agency: “The launch of Salaam insurance – the first independent, fully sharia-compliant Takaful operator available in this country – is a significant step for the growth of Islamic finance in the UK.”
