Fatwa ID: 08073

Answered by: Aalimah Saleha Bukhari Islam 

Question:

Aslaam o Alakum,

Hopefully, this message finds you well.

I am trying to start a business of a security agency that needs public liability insurance. I couldn’t find any Takaful-based insurance in the UK.

Can you please advise if you are aware of a Sharia-compliant insurance provider in your knowledge?
If I struggle to find Sharia-compliant insurance, what should I do in that case?
JazakAllah

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

Wa alaikum as salām wa rahmatullāhi wa barakātuh,

There are several Islamic banks operating today that offer interest-free business management options, including insurance. Islamic insurance (Takaful) in the UK is a financial protection service that adheres to Islamic principles. It offers insurance coverage that complies with Shariah law, providing risk protection and financial security in a manner that upholds Islamic ethical and moral values.

Takaful allows the UK’s Muslim community to secure their business assets without compromising their faith. This is achieved by avoiding non-compliant Shariah activities, such as interest (Riba) and investments in prohibited sectors like alcohol and gambling. The primary goal of Takaful in the UK is to safeguard policyholders against financial losses from various risks, including accidents, illnesses, property damage, or liability claims, etc. At the same time, it fosters principles of cooperation, mutual assistance, and ethical financial conduct. By aligning insurance practices with Islamic ethics, Takaful ensures that all financial transactions are free from prohibited elements, thereby promoting a cohesive and principled financial environment within the Muslim community.

[See: Contemporary Fatawa by Shaykh Taqi Usmani, Insurance pp. 549-552] [1]

The United Kingdom is a global financial hub bridging the East and the West and is home to over 2.7 million Muslims, representing about 4.5% of the total population. Within this landscape, there are 34 banks from Islamic countries and three British banks that offer Sharia-compliant banking products, catering to the financial needs of this diverse community. You may contact these banks and check their suitability for your business via the link below:

https://thebanks.eu/articles/Islamic-banks-in-the-United-Kingdom

Only Allah (Subhanahu wa Ta’ala) knows best.

Written by Aalimah Saleha Bukhari Islam
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham

[1] https://muftitaqiusmani.com/ur/wp-content/uploads/en-books/Contemporary_Fatawa.pdf