Car Insurance >> Car Insurance >> first-islamic-motor-insurance-a-hit-among-both-muslims-and-non-muslims

First Islamic Motor Insurance a Hit among Both Muslims and Non-Muslims

Both Muslims and non-Muslims are now drawn to the latest Shari`ah-compliant car insurance product recently launched by a London-based Islamic insurance firm. Motor Insurance manager of the price-comparison website Money supermarket, Kaye Pimblett stated that customers have showed a lot of interest over the product. She enthusiastically announced that Salaam Halal returned almost 37,000 quotes only in the first seven days after their launch of the new motor policy on Money supermarket and their own website. And not only that, they were registered among the top three positions each time they returned a quote.

The new policy is based upon the Takaful principle, which calls for all customers to have an equal risk share and even addresses important features where conventional insurance is not compatible with Shariah. Unlike traditional insurance cover, people here do not pay any premiums. Instead they pool in money which is compatible with Shariah investments which in turn is used for paying any claims at the end of the year.

If the pool has surplus money, then the amount is given back to the members through a discount in the next premium. Similarly, if the claims are more than the existing pool, then the shareholders are required to pay the surplus amount which is adjusted in times of profit.

The new policy of Salaam Haalal has come as a good relief for British Muslims as they wanted a product in compliance with their faith. The firm also has intentions of launching home insurance products very soon. What attracts non-Muslims towards the policy is the ethical nature of the policy and its transparency.