HSBC launches home insurance for Muslims

22nd November, 2005

Banking giant HSBC has become the first bank in the UK to offer home insurance policies which are compliant with Shariah law.

The new HSBC Home Takaful insurance policy complies with Shariah law so that Muslims need not worry about compromising their beliefs for their home security.

The new Takaful policy has been developed under the guidance of a Sharia advisory committee and is in keeping with Islamic law by not offering cover for items related to pork or alcohol.

The scheme works by policyholders pooling their money into a joint fund, which then covers all of them for their mutual benefit. The idea is one not based on profit, but on mutual co-operation for shared risk.

'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,' said Amjid Ali, UK head of HSBC Amanah.

'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,' he added.

 

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