"Muslims unaware their insurance might not follow their faith"

Some British Muslims are unaware that their travel insurance, home insurance and car insurance policies may not follow the rulings of their faith, according to one expert.

The Islamic Bank of Britain (IBB) has said that Muslims had never had the option of taking out Halal insurance cover prior to the launch of Salaam Halal, which is Britain's first ever Islamic insurance firm.

Sultan Choudhury, commercial director at the Islamic Bank of Britain said: "British Muslims want to be able to make small changes to their life that help them to strengthen the practice of their faith while still being able to use banking products such as savings accounts. "

He added that IBB provides a full range of financial products that give Muslims the reassurance that their money is being used in ways that is compliant with their faith.

"There are less questions over the financial aspects of their life from a religious perspective."

Islamic insurance policies differ from normal cover as the providers all agree to guarantee each other rather than taking on a risk for the rewards they are likely to reap.

Profits these firms make are put into a central fund, which is audited by a team of actuaries on an annual basis and if it is considered over-funded then policy holders receive a discount on their premiums.

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