A major UK bank has become the first to offer Islamic insurance policies for building and contents. This means that the products are compliant with Shariah law.
The product by HSBC is called HSBC Home Takaful policy which is “based on the concept of mutual co-operation in the sharing of risk.” This is different to insurance as we know it as key features have been altered to fit in with Shariah law.
Amjid Alo, UK head of HSBC Amanah said, “There are over 1.6 million Muslims in Britain, of which 250,000 are homeowners, but until now they had no easy way of arranging insurance that complies with the Shariah.
He added, “HSBC’s Home Takaful policy is the first of its kind to be nationally available and I am confident that the ethical nature of the Takaful system and its attributes of fairness will have broad appeal.”
A special Shariah advisory committee was consulted when the policy was being developed to ensure compliance.
The policies provide the same cover as normal home insurance policies. However, to keep it in line with the principles of Islam, there will be no cover for items connected to alcohol or pork.
Another bank, Lloyds TSB announced that five extra branches will be offering products that comply with Shariah law. This makes a total of 22 branches that provide services which are in line with Islamic principles.