ISLAMIC CAR INSURANCE – MOTOR TAKAFUL (UK)

Islamic car insurance companies have funds that are managed transparently under Islamic guidelines, avoiding riba (interest), gharar (excessive uncertainty), and maisir (gambling). Any surplus after claims and expenses may be redistributed among participants or reinvested ethically, making Motor Takaful a halal and community-oriented way for Muslims to insure their vehicles while meeting legal insurance requirements.

In the UK, Takaful is still relatively new but growing; muslim communities in these countries often face challenges in finding financial products that align with their values, especially in highly regulated sectors like insurance.

Islamic car insurance provides them with a solution that avoids prohibited elements while still meeting legal requirements for vehicle coverage; in the UK, for example, companies and brokers offer Shariah-compliant motor coverage under Takaful models, ensuring Muslims meet the mandatory insurance laws while staying true to their faith.

How does Motor takaful ( Islamic car insurance) work ?

Here’s a simple way of how Motor Takaful works:

• Car owners (participants) contribute donations (tabarru‘) into a common pool (Takaful fund).
• The fund pays claims to members who suffer losses (e.g., accidents, damage).
• If there’s a surplus, it is redistributed to participants or carried forward to reduce future contributions.

What risks does a Halal car insurance (Motor Takaful) cover ?

A Halal car insurance (Motor Takaful) policy covers the same essential risks as conventional auto insurance, but it is structured in a Shariah-compliant way—through risk sharing, transparency, and ethical fund management. The exact coverage depends on the Takaful operator and the product chosen (comprehensive, third-party, etc.), but generally, it includes:

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🚗 Core Risks Covered by Motor Takaful

1. Accidental Damage to the Car
   • Repairs or replacement if your car is damaged in a road accident, collision, or overturning.
2. Third-Party Liability
   • Compensation for injury or death caused to other people in an accident.
   • Covers damage to third-party property (e.g., another person’s car, building, or roadside assets).
3. Fire & Theft
   • Loss or damage if the car is stolen or damaged by fire.
4. Natural Disasters (Act of God Risks)
   • Protection against floods, storms, hail, lightning, or earthquakes (if included in policy terms).
5. Personal Accident Benefits
   • Compensation for the driver or passengers in case of death or permanent disability due to an accident.
6. Towing & Emergency Assistance (Optional)
   • Roadside assistance, towing service, and car replacement while repairs are done (varies by plan).

Can I get in the UK an Islamic car insurance ?

Short answer: no—as of 9 September 2025 there isn’t an FCA-authorised Islamic (takaful) car insurer serving UK retail customers.

• The UK’s last retail attempt, Salaam Halal Insurance, launched in 2008 and ceased trading/entered run-off in 2009; the business was later sold in 2010.
• A UK takaful broker, NDI Takaful & ReTakaful, explicitly says they do not currently offer Sharia-compliant products (they’re working on it). NDI Insurance
• Industry and community sources still describe a gap in Western/UK retail takaful, despite growth globally.

Where can I find outside the United-Kingdom an Islamic car insurance company ?

Here’s a practical, country-by-country list of Sharia-compliant motor insurers (Motor Takaful).

Europe (incl. UK)

• No active retail motor takaful providers (earlier launches like Salaam Halal/Principle closed years ago).

Asia (incl. Turkey)

• United Arab Emirates: SALAMA – Islamic Arab Insurance (Auto Takaful); Watania Takaful (Motor); Abu Dhabi National Takaful – ADNTC (Motor); Sukoon Takaful (Motor). (Note: Yas Takaful’s licence is currently suspended by the UAE Central Bank.) SALAMA
• Saudi Arabia: Al Rajhi Takaful (Motor); Al-Jazira Takaful Taawuni (Motor). alrajhitakaful.com
• Qatar: General Takaful Company (Motor); Doha Takaful (Motor); Al Khaleej Takaful (Motor). General Takaful
• Kuwait: KFH Takaful (Motor); Wethaq Takaful (Motors). kfhtakaful.com
• Oman: Takaful Oman (Motor); Al Madina Takaful (Motor). Takaful Oman
• Bahrain: gig Takaful (Motor). gigtakaful.bh
• Malaysia: Etiqa General Takaful (Motor); Takaful Ikhlas General (Motor); Takaful Malaysia Am (myClick Motor); Zurich General Takaful Malaysia (Motor). takaful-ikhlas.com.my
• Indonesia: Garda Oto Syariah (Motor); Jasindo Syariah (Motor); Zurich Syariah Indonesia (Mobil). gardaotoku.com
• Pakistan: Salaam Takaful (Motor); Takaful Pakistan Ltd. (Motor); Pak-Qatar General Takaful (Motor). salaamtakaful.com
• Bangladesh: Takaful Islami Insurance Ltd. (Motor).
• Brunei: Takaful Brunei Am (Motor). takafulbrunei.com.bn
• Jordan: The Islamic Insurance Company (Motor Takaful). islamicinsurance.jo
• Sri Lanka & Maldives: Amana Takaful (Motor). takaful.lktakaful.lktakaful.mv
• Turkey: Türkiye Katılım Sigorta (Araç/Vehicle); Neova Sigorta (Katılım) – Kasko/Motor.

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