HSBC has become the first bank in the UK to offer building and contents insurance designed to be fully compliant with Shariah law.
The new HSBC Home Takaful insurance policy is "based on the concept of mutual co-operation in the sharing of risk" and also alters key features of conventional insurance to make sure the policies fall in line with Shariah law.
"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.
The new Takaful policy has been developed under the guidance of a Sharia advisory committee.
It offers the same benefits of a conventional home insurance policy but in keeping with Islamic principles, no cover is provided for alcohol or pork-related items.
Lloyds TSB also announced this week that five additional branches will offer the bank's current account and home finance products.
A total of 22 Lloyds TSB branches now offer the products, all of which are Shariah law-compliant.To read more about Home Insurance, click here.
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