Launch of Islamic insurance

[Ms DD]

March 3, 2008

Launch of Islamic insurance business

by Gill Montia

 

Story link: Launch of Islamic insurance business

 

A new insurance business set up to comply with Islamic beliefs has appointed Capita, the outsourcing company best known for operating London’s congestion charge, to provide backoffice functions.

 

From April, Capita will sell car and home insurance products for British Islamic Insurance Holdings.

 

The initial launch will be followed by life insurance, investment, savings and ethical financial products later in the year.

 

Both policy sales and claims administration will be undertaken by Capita under an agreement that should be worth £87 million over eight years.

 

Bradley Brandon-Cross, chief executive of British Islamic Insurance Holdings, said: “The Muslim faith states that, because of various product features, conventional UK insurance options are in conflict with Islam and this creates a dilemma for British Muslims. We are planning to create a British insurer that operates in a way that removes this dilemma and creates an exciting new sector in the British insurance market.”

 

The conflicts referred to by Mr Brandon-Cross arise because the Koran prohibits “riba”. This can be translated as “interest” but many Muslims believe it to mean usury or extortionate interest.

 

The insurance products will also comply with “Takaful” principles, meaning they will take the form of mutual insurance policies, based on co-operation and responsibility.

 

 

source

[Jacaylbaro]

Good for reer London ........

[N.O.R.F]

You will all get used to hearing the term 'Sharia Compliant' very soon.

[Faynuus]

Insurance is haram as it is based on a likelihood/probability of what may go wrong. Leave that to Allah and trust him completely. That is what i hear from scholars. Allah knows best.

[Miriam1]

^ I don't get that logic...why then do we save money, or have scholarship funds for our children...or take care of our health...or one other million things that in some way or the other preserves our way of life?

 

weren't we always told as children, that Allah Helps those that help themselves... so how then is insurance for your home or car haram...you have to think this one out Faynuus...before taking the word of your scholars

 

Ps. Isn't it interesting that this is being introduced after all that roar with the archbishop's comments? bet you this won't make a stir since it benefits big business!

[Geel_jire]

^ I have also heard there is a religious issue involved in 'life insurance' im not sure what the context is though.

[Abu-Salman]

Looking after one's health is essential (the prophet scw used to run with his wife and recommended garlic ect); it is now confirmed that Garlic is important for preventing many diseases and is widely prescribed in Germany to strengthen the immune system etc.also, Honey, Xaaba sawda (Black Cumin seeds) is promising in treating resistant infections for instance.Olive, mentioned in the Qur'aan as well as the Sunnah, with prophetic medicine being so full of wisdoms that those relying solely on "Scientific evidence" miss, is also powerful, especially when most natural (ie: organic extra virgin olive oil).

 

Particularly noteworthy is that regular handwashing as well as toothbrushing has been found as most powerful tools in terms of overall prevention, preventing conditions as diverse as Atherosclerosis or Chest Infections and Doctors diagnosing cardio-vascular pathologies look at gum diseases for reliable information ([...]research suggests that gum disease may be a more serious risk factor for heart disease than high blood pressure (hypertension), smoking, high cholesterol, gender and age[...], Academy of General Dentistry ) while we know that according to a saheeh Hadith in Bukhari that the prophet scw said he would have made Miswak compulsory at each Wudu (the Sunnah is to use briefly Miswak in mouthwashing during Wudu) and that we are used to be proficiency in hygiene (ie rules about using the left-hand when cleaning in the Toilets or washing one's feet during Wudu and the right-hand for food and drinks, social contacts as well as other activities).

 

It is also somehow amazing that diets rich in meats (major surce of agricultural pollution and waste of calories, as 1kg of healthy Maize or Soya is needed for the equivalent in terms of much unhealthy bacon, for instance) are also particularly damaging, increasingly around the World as Western norms are adapted (a major strain on public finance, health systems and economic burden more generally, through associated pain and disability such as in the arthritic conditions so prevalent in the West).

 

Crucially, limiting one's intake of food to the bare minimum is a most powerful way of preventing medical conditions of all sorts besides optimizing Khushu in Acts of Cibaadah, particularly during Salats, and minimizing distractions or lusts; little wonder that many studies with animals confirmed that a 30-40% reduction in terms of calories intake boosted very significantly their lifespan and, although delicate to replicate in humans, Okinawa Japanese Residents were found to live generally much longer, around a century with much less chronic conditions such as metabolic syndroms which includes the nw all to common type 2 diabete, cardio-vascular diseases etc).

 

Indeed, the pattern of Allah's Justice (punishing lack or weakness of eemaan) and Wisdom (providing us with the most reliable guidance for both worlds, without room for futher revision or update) invites us to adapt new yardsticks and while belief in Al Qadr or predestination as a Key element of Eeman is a central part of our well-being in every sphere (Muslims rely on their creator, ie the concept of Tawakal, instead of the stock exchange or health insurance).

 

Financial well-being, which is closely linked with both one's mental as well as physical well-being, which are in turn seriously enhanced through regular spiritual activity as widely published and recommended by experts, limiting consumerism to bare essential could do the other part while marriage play a pivotal role as a study published last year in The Economist confirmed that married men earned and saved significantly more.

 

Therefore, what point is there in trying to "insure" yourself against "residual risks beyond your control" as a believer in Al Qadr, especially when our Deen make it compulsory to assist each other in those cases thus establishing strong reciprocal solidarity (much unlike in the West when even close relatives are unaware of each other let alone neighbours)?

 

Surely, the best way to educate one's children is to set the right example, be available for them and making them the priority over work, instead of relying on a "saving for scholarship scheme" of dubious efficacity (albeit there are many free scholarships available everywhere for serious students).

 

In conclusion, yes, saving and refraining from frivolous consumerism (shopping has been described as yet another form addiction in an elusive quest to happiness) should be encouraged; Insurances, certainely not, and constantly stressing about future risks is the surest way as not to miss them (Stress and anxiety, are closely correlated with overall health, and depression has already been predicted as the primary cause of disability and morbidity in the West by the WHO)...

[Faynuus]

Hayem I think Abu-Salman answered you.

 

I would advice you that you do not let your thoughts/emotions decide what is right or wrong. allowed or forbidden. If you are a believer, it is Allah alone who decides/dictates what is haram/ halal.

 

Scholars are our leaders. They are the more knowledgeable among us. Remember this religion was brought to us by scholars of Islam. It is unfortunate we idolize western views and disregard our noble scholars.

[Khayr]

Originally posted by Northerner:

You will all get used to hearing the term 'Sharia Compliant' very soon.

Isn't that how Dubai was built saxib.

[Miriam1]

Interesting..

 

I would advice you that you do not let your thoughts/emotions decide what is right or wrong. allowed or forbidden. If you are a believer, it is Allah alone who decides/dictates what is haram/ halal.

 

 

For one, any intelligent person's thoughts would always undergo some critical analysis based on their inherent knowledge and one's understanding of "wrong" and "right" which is always built upon their moral and religious education.

So through such a deduction...if I am following my "thoughts" and "emotions" they wouldn't be as as frivolous as you think, and would carry the same weight in my opinion if held against the arugments of Abu Salama's post.

Which by the way is from a scholar who is not credited, and has some significant assumptions in his position.

Such as this

 

Therefore, what point is there in trying to "insure" yourself against "residual risks beyond your control" as a believer in Al Qadr, especially when our Deen make it compulsory to assist each other in those cases thus establishing strong reciprocal solidarity (much unlike in the West when even close relatives are unaware of each other let alone neighbours)?

 

I will have to clarify that I am speaking from a personal perspective, I don't live in a country whose majority is Muslim. So it would be very difficult for me to go on about my life hoping that there isn't a flood that destroys my basement or a trailer-truck that would smash into my car, on the assumption that once these unfortunate things happen, I will have neighbors and family to help me out!

Reality check too...which country populated by muslims does this "Scholar" live in?

 

The post has some good points on consumerism and saving. The whole argument that having insurance, is source of unnecessary stress is strange to say the least... I would say any rational person has more stress when they know a small accident could make them homeless or without transportation, putting their lives and families at risk.

In the societies that we live in today, you savings alone cannot cover the one and thousand things that can happen to you.

In the words of Beck Ulrich...tis a effing "MODERN RISK SOCIETY!" lol

 

By the way Faynus..I trust in Allah's and his prophets words and wisdom..but I am wary of blindly trusting any modern day man's interpretation of those words without a close and earnest look.

[Khayr]

^^^^

 

Interesting thoughts. Maybe this topic could be moved over to the islam or camel milk section. The reason for this suggestion is topics get muddled and lost in the general thread.