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The potential for Takaful products

There are more than 60 million people living in the UK and most of them need to buy some kind of insurance at some point. Recent statistics demonstrate an overall increase in the UK’s household spending on insurance products. The chart above shows the percentage of households with different types of insurance products, and the average annual expenditure on insurance products by those households.

Like the rest of the UK population, Muslims have the option to insure their lives, their families, their homes, cars and businesses. However, the use of conventional insurance creates a dilemma for UK Muslims because it contains Haram elements - including “Gharar” (uncertainty), “Maysir” (gambling) and “Riba” (interest) – that are not Halal; the exception to this is car insurance which is a legal requirement but this demonstrates the dilemma of conventional insurance which, until Principle Insurance Holdings Limited and Salaam Halal insurance, meant that Muslims often had to compromise their religion and beliefs.

“This lack of Halal insurance products has led some Muslims in the UK to avoid buying insurance products altogether which means that they do not have the same level of financial protection available to the rest of the UK population. In the case of Car insurance, which is mandatory under UK law, the arrival of Salaam Halal insurance has solved a dilemma faced by many Muslims simply because Halal insurance products were not available previously.”

Salaam Halal insurance products will remove this dilemma by delivering insurance products that are Halal.

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