Car insurance news
04/11/2008

Woman insurance and faith specific cover in the UK

If you're a woman, insurance possibly doesn't feature high in your set of priorities as there is a plethora of women's car insurance companies out there to choose from. However, if you are a Muslim car insurance buyer, a motor cover product that is compliant with your faith would be a very desirable product, but previously has not been a readily available item.

Jeremy Grant of the Financial Times has highlighted the marketing campaign, from Principle Insurance, of the first Shariah-compliant car insurance products in the UK, sold under the branding of "Salaam Insurance", using leaflets bearing the slogan, "Halal car insurance that's right for your faith".

Salaam insurance products use the takaful principal of mutual loss sharing whereby customers contribute to a fund that is invested in Shariah-compliant ventures that do not contravene the tenets of the Muslim faith, such as investment in businesses involving alcohol, gambling or pornography.

Car accident claims are paid from the investment fund and any surplus left in the fund is redistributed amongst the customers in the form of discounted renewals.

Grant points out that the Salaam phone line operators speak Arabic, Urdu, Gujurati, Bengali and English and that the company also aims to market its products to ethically minded car drivers who may hold similar beliefs regarding insurer's investments to those of Muslims car cover buyers.

A CoverGirl spokesperson commented, "We provide a woman insurance specific to her gender at the most competitive rate. Faith specific car cover is a similar concept, which we hope will be successful."