The FSA has authorized the UK’s first independent takaful insurer, Principle Insurance which operates the website http://www.salaaminsurance.com.
Principle Insurance has become the UK’s first Sharia compliant independent insurance company to be formally authorized by the FSA. The insurer will operate in accordance with Islamic laws, through which it will target the UK’s estimated two million Muslims in the home and motor markets.
In this way, the company is demonstrating a radically new approach to segmenting the insurance market by religion.
Insurance has always been a problem for Muslims and there are over two million Muslims in the UK and many of them remain unsure about the principles of Takaful.
With the arrival of Salaam Halal insurance the UK Muslim population now has the option to buy insurance that is both low-cost and Halal.
Salaam Halal Insurance products are specially designed by leading insurance professionals under the guidance of a Shariah Supervisory Committee. This ensures all your insurance needs are covered, in line with your faith.
The FSA has authorized Principle Insurance to operate as an insurance company in the UK.
The company will trade in compliance with Sharia Islamic laws in regards to financial services, which prevent accruing interest and some forms of investment.
As such, Principle Insurance will operate along the lines of typical cooperative mutual insurers already present in the market, however it is the first independent company set up to be fully compliant with Islamic law in the UK.
Takaful insurance is based on the concept of co-operation and mutual protection. Insurers who adhere to this approach see policyholders as contributors participating in a fund for mutual benefit. They are essentially the owners of the fund and the company simply manages it on their behalf, much the way a co-operative does.
Instead of making a profit, the company will be paid a management fee, or Wakala. The business is further separated from mainstream insurers through its utilization of Sharia scholars who will supervise the activities of the takaful fund in order to ensure compliance.
Regarding the religious principle Salaam state