Salaam Halal insurance launches on moneysupermarket.com
Prior to Salaam Halal insurance's launch in July 2008, British Muslims didn't have the option of buying a car insurance product aligned with their faith. The launch of Salaam Halal insurance on moneysupermarket.com means that Britons will now be able to compare the cost of Shariah-compliant motor insurance to over 60 conventional motor insurance products, addressing concerns that Islamic insurance is more expensive than conventional insurance.
Salaam Halal insurance is also likely to appeal to the non-Muslim community who are interested in competitively priced products of an ethical or co-operative nature. Halal insurance, also known as Takaful, prohibits investment in non-ethical industries, e.g. alcohol and tobacco, and is based on mutual cooperation.
As well as receiving competitively priced insurance, Salam Halal insurance policyholders also benefit from the unique nature of Halal insurance. Unlike conventional insurance, surplus funds are distributed back to the Policyholder in the form of a Participation Discount on the next year's premium in addition to any conventional No Claim Discount.
Andy Leadbetter, Managing Director for insurance and home services at moneysupermarket.com commented: "We are pleased to offer the Salaam Halal insurance product exclusively on moneysupermarket.com. Their specialist insurance offering brings diversity to the market and allows us to offer an increased amount of choice to our customers. This insurance product sits competitively in our listings and appears within the top three positions in over a third of the quotes they return to our visitors. The Salaam Halal insurance product stands side by side with standard policies on moneysupermarket.com, enabling consumers to take in to consideration not only the price, but all the other aspects offered by this insurer. It is encouraging to see this level of variety in what is an increasingly competitive insurance market."
Bradley Brandon Cross, Chief Executive of Salaam Halal insurance, added: "Prior to the launch of Salaam Halal insurance in July 2008 there were no alternatives to conventional UK insurance, which conflict with the core beliefs of the Muslim faith. We do, however, understand that it is crucial that we offer competitive prices. The exclusive launch of Salaam Halal insurance on Moneysupermarket.com forms an important part of our business strategy and will mean that potential customers can be sure they are getting the best of both worlds - a good deal on insurance which is in harmony with the Muslim faith."
About Takaful - how does it work?
Takaful is a new concept in the UK because, unlike conventional insurance where the risk is shifted from the policyholder to the insurance company, Takaful is a structure in which risk is shared between all policyholders, although participants will never have to pay more than their contribution.
Takaful allows participants to pay their contribution into a pool (Takaful Fund). The pooled contributions are invested strictly in Shariah-compliant investments (i.e. not in interest bearing investments or investments linked to prohibited goods and activities such as alcohol or pork) and any investment profits are distributed back to the Takaful Fund.
The fund is used to pay claims, and at the end of the year, if the Takaful Fund is over-funded it is then distributed back to Policyholders as a Participation Discount on their next year's contribution. This will be in addition to any conventional No Claim Discount.
To ensure that the insurance is fully compliant with Islamic law, all the activities and products of Salaam Halal insurance are overseen by its Shariah Supervisory Committee - a group of internationally noted Shariah scholars who monitor and guide the activities of Salaam insurance to ensure that all investments, operational and administration activities are consistent with Shariah principles.