Finance column: Life insurance, is it Haraam? Is it different to death committees?

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shababfinacecolumnLife insurance, is it Haraam?
Is it different to death committees?
There have been many arguments over the years between Muslims scholars and generally answers sought in Islamic Fiqh (jurisprudence) with reference to if Insurance really is Haraam (forbidden) Some say insurance is completely Haraam. This is because it has elements of Gharar (uncertainty) Maisar (gambling) and Usury (interest) Other highlight its not insurance that is Haraam because it is the same as death committee’s, but what is Haraam is where the insurance company invests the money they get in premiums. Other people perceive that insurance is Haraam, but they also say, well what happens if I die? Who pays my mortgage off, and is it not looked down upon for a Muslim to pass away in debt? 
My view point is yes insurance is Haraam due to the insurance company investing the funds into fixed interest. However insurance itself is designed to take away uncertainty upon death, and is it really gambling? Maybe I question the overall thinking because I have seen the effects death can have on a family’s income as well as their standard of living.
The other aspect that scholars do not really answer is when a Muslim passes away with debt. During the funeral prayers, the Imam usually asks if this person owes someone money, and if they do, then to see the deceased’s family to pay the debt off. Most of us have mortgages; therefore upon our deaths whether the mortgage is Shariah or conventional the bank will want their money. I am not sure about your family, but I doubt my brother would want to be saddled with my mortgage on my death, or that it is fair on my parents to pay my debt, when they are near retirement.

I myself am forced to be a member of a death committee because most of my family are members of a plan, where we get paid £3000 if a member of our family passes away to help with funeral costs. The cost of this committee is £20.00 a year, which is not allot of money, but then again is the committee a form of insurance because it will only make a payment if something happens to me or my immediate family.

We do not consider what happens on our death, and more to the point what happens to our families. I am not sure about the rest of you, but I am fairly confused after researching if insurance is truly Haraam. The majority of scholars say yes, but they forget that in the real world, they need to guide us more, and show what we should do with our debt on death if we do not have insurance.

 

 

 

 

 

 

OFT Gets Tough with Payday Lenders

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The Office of Fair Trading (OFT) is giving leading payday lenders just 12 weeks to change their business practices.

Over 50 major lenders, which is 90% of the market, risk losing their licences after evidence uncovered irresponsible lending and failure to comply with the standards required of them.

The OFT also announced that it is proposing to refer the payday lending market to the Competition Commission after evidence of ‘deep-rooted problems’ was found in how lenders compete with each other.

These actions were announced in the final report on the OFT’s compliance review of the £2 billion payday lending sector.

Clive Maxwell, OFT Chief Executive, said: “We have found fundamental problems with the way the payday market works and widespread breaches of the law and regulations, causing misery and hardship for many borrowers.

Payday lenders are earning up to half their revenue not from one-off loans, but from rolled over or re-financed deals where unexpected costs can rapidly mount up.

“We are proposing to refer this market to the Competition Commission, which has wider powers to get to heart of the problems in this market and to identify and impose lasting solutions that protect consumers.”

He added: “Irresponsible lending is not confined to a few rogue payday lenders – it is a problem across the sector. If we do not see rapid, significant improvements by the 50 lenders we inspected they risk their licences being removed. Payday lending is a top enforcement priority for the OFT.”

The OFT is now advising consumers to think very carefully when considering taking out a payday loan.

Thirty-two top tax cheats get over 150 years behind bars

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Operation SnowbankThe top tax criminals of 2012 have been sentenced to a combined total of 155 years and 10 months behind bars, HM Revenue & Customs (HMRC) announced today.
Over 30 of the UK’s top tax cheats are being publicised on Flickr as part of HMRC’s current Tax Evasion Campaign.
Exchequer Secretary to the Treasury David Gauke said:
“The Government is committed to closing in on tax evaders. Collectively the 32 criminals have been sentenced to more than 150 years. Most people play by the rules and pay what they owe, but HMRC is cracking down on those who don’t.
“We hope that publishing these pictures will help get across that it always makes sense to declare all your income, and tax dodgers are simply storing up trouble for the future.”

HMRC’s top tax criminals of 2012 can be seen here:
http://www.flickr.com/photos/hmrcgovuk/sets/72157632409515581

Tell HMRC about customs or excise fraud, or tax evasion here http://www.hmrc.gov.uk/reportingfraud/online.htm

North London property developer banned for four years for £500k tax dodge

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Walid Wasfi Wasif Musmar director of Oberon Properties Ltd,(Oberon) has been disqualified from acting as a company director for four years for failing to pay corporation tax. The disqualification follows an investigation by The Insolvency Service.

Oberon, who developed properties in Camden, north London, sold the last of its properties for £3,583,302 in May 2007 and incurred corporation tax of over £500,000 from the sale. This amount was due for payment in August 2008.

Mr Musmar (38) of Highgate and Antoni Fields (53) of Barnet in London, both directors of Oberon, caused the company to pay £3,727,845, including loans totalling £640,000 to another company that they were directors of, but didn’t pay any of the corporation tax debt.

Mr Fields gave an undertaking not to act as a director in relation to his conduct in Oberon Properties Ltd for four years from 16 November 2010. Mr Musmar’s disqualification begins 14 December 2012.

Oberon went into liquidation on 19 December 2008 owing HMRC £535,563, in unpaid tax.

Commenting on the case, Mark Bruce, a Chief Examiner at The Insolvency Service said:

“Directors who seek an unfair advantage by not paying tax should not expect to get away with it. This conduct harms commercial confidence and the UK’s reputation as a place to do business.

“Other directors tempted to follow this path should remember that if they run a business in a way that is detrimental to its customers, its creditors or the public they lose the protection afforded by limited liability. The Insolvency Service will investigate them and seek to remove them from the business environment.”

Britain’s £3.6BN curry industry to be celebrated at annual British Curry Awards amidst star studded attendance

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Enam Ali MBE (Founder of British Curry Awards) British Curry Awards 2012-Jenny Bond, Dipna Anand, Enam Ali, Francis MaudeUK’s Top Indian Restaurants Set To Receive Top Accolades at Awards Gala.
The UK’s favourite cuisine will once again be honoured as the eighth annual British Curry Awards takes place on 26th November 2012, at a glittering gala event at Battersea Evolution in London.
With the UK curry industry boasting 10,000 restaurants and 80,000 employees, the awards have become a highlight on the UK social calendar, and each year showcases the vast allure of the £3.6bn a year curry industry. The curry industry is not only a lucrative mainstay of the economy but also an integral part of the nation’s social and culinary fabric.
A pioneer in the UK catering and hospitality sector, the British Curry Awards has been lauded as a pivotal UK institution, with Prime Minister David Cameron calling the awards ‘the curry Oscars’. He went on to say: “The British Curry Awards is an uplifting and inspiring evening.”
This year’s event will once again see a plethora of high-profile guests in attendance, and will include celebrities, dignitaries, politicians, business leaders, and of course, top names from the culinary industry in the UK. The gala dinner will also feature quality entertainment amidst a gourmet banquet. This year’s event will also celebrate a Best of British theme as it reflects on the UK’s remarkable achievements during the London 2012 Olympic and Paralympic Games.
The nomination process for the awards encourages people to put forward their favourite Indian eatery for a well-deserved accolade and the awards are estimated to draw a record number of nominations. It is stated that an Indian meal is now the preferred choice of take-away amongst the British population, and has overtaken previous favourites such as Chinese and Italian take-away food. To reflect this, a new award category of ‘Best Delivery Restaurant / Takeaway” has been added this year, in association with Just Eat, the online takeaway ordering service. This will be open to restaurants that are take-aways, as well as restaurants that offer a home delivery service, and will be judged on a nation-wide basis.
Each year the British Curry Awards also gives the ‘Special Recognition Award’ to an influential culinary personality and past winners of this award include Madhur Jaffrey, Cyrus Todiwala OBE, Anjum Anand, Heston Blumenthal OBE and Shelim Hussain MBE.
The British Curry Awards was established by British entrepreneur Enam Ali MBE who the founded the event in 2005. He has been tirelessly promoting the British curry industry globally for the past 30 years. In speaking about the event, he says: “The British Curry Awards recognise and honour the integral contribution made by the UK’s Asian restaurants and take-away outlets to the social and cultural fabric of the United Kingdom.
Curry may be born in India, but British Bangladeshis globalised it. The humble curry has come a very long way since it first came to these shores. Indian cuisine has now become the favourite food of the nation, and is enjoyed by millions of people across the UK, from students to professionals and pensioners. Most people will have a favourite curry that they will order when they go to a restaurant, meaning that Asian cuisine is deeply embedded in the psyche of the British people.
“The curry dish that Britain has given to the world – Chicken Tikka Masala – again features on the British Curry Awards menu in recognition of the important part it has played in helping to establish the UK curry industry’s reputation internationally.”
Prime Minister David Cameron: “Its often said that curry is Britain’s national dish and it’s easy to see why. It’s not just the flavour served up in the thousands of the curry restaurants across the country, it is the welcome too. Those who work in the curry industry enliven Britain’s high streets, boost local economies and contribute to local communities.”

Jenny Bond: “I have driven 220 miles through the floods of Devon to be here tonight at the most prestigious awards in the curry industry.”

Chris Grayling MP: “This ceremony goes from strength to strength each year. It is a fantastic occasion to celebrate new restaurants and rising stars of the future.”

The Winners

  •  Best Delivery Restaurant/Take-away by Justeat.com – MUSHTAQS (Hamilton, Lanarkshire)
  •  Best Restaurant Scotland – TAJ INDIAN (Prestwick)
  •  Best Restaurant North East – AAGRAH (Leeds)
  •  Best Spice Restaurant North West – INDIAN OCEAN (Ashton-u-Lyne)
  •  Best Spice Restaurant Midlands – ITIHAAS (Birmingham)
  •  Best Newcomer Restaurant Midlands – FIVE RIVERS A LA CARTE (Walsall)
  •  Best Restaurant Wales – RASOI INDIAN KITCHEN (Swansea)
  •  Best Restaurant South East – HAWELI INDIAN RESTAURANT (Twyford, Berkshire)
  •  Best Newcomer Restaurant South East – SHAMPAN 4 – THE SPINNING WHEEL (Westerham, Kent)
  •  Best Restaurant South West – SPICE LODGE (Cheltenham)
  •  Best Restaurant South West – THE MINT ROOM (Yeovil, Somerset)
  •  Best Restaurant Central London & City – BOMBAY PALACE (Paddington)
  •  Best Newcomer Restaurant Central London & City – CHAKRA (Notting Hill)
  •  Best Restaurant London Suburbs – CHAK 89 (Surrey)
  •  Best in Casual Dining – THE CHILLI PICKLE (Brighton, East Sussex)
  •  Special Inspiration Award – Dipna Anand of Brilliant Restaurant – Female Chef

OFT advises price comparison websites how clearer information can improve consumer trust

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The OFT has written to 100 leading price comparison websites asking them to ensure they are providing clear information to consumers, after a review published today by the OFT suggested that some sites could do more to improve trust amongst the public.
The review says that in general, price comparison websites have represented a major step forward for consumers, enabling them to secure better value when buying goods and services, but that some people are missing out on potential savings because of a lack of trust. The review also says that the role of such sites is likely to become even more important in the future as online sales continue to grow and initiatives such as the Government’s ‘midata’ project put more information in consumers’ hands.
As part of its review, the OFT conducted a websweep of 55 price comparison sites which found that a number of sites could improve their privacy policies and their complaints and redress processes. It also identified scope for some sites to provide greater clarity about the way search results are presented, and clear identification of the business operating the website.
In order to help consumers make the best use of price comparison sites, and to assist those who do not currently use them, the OFT has joined forces with other government departments, sector regulators and consumer groups to develop six ‘top tips’. It has also released two new information films which can be viewed on the OFT’s YouTube channel. The OFT’s top tips are:
• Protect your data

– Always read the information these sites provide (usually in a privacy policy but sometimes in the part of the terms and conditions dealing with data and privacy).

– If you do not want your personal information to be passed to other companies, check to see if there is the ability to ‘opt out’ on the website, for example by ticking a box to say that you do not give your consent for your information to be shared.
• Make the comparison which is most helpful to you. Check if your results are presented by relevance, price, or popularity and what the website says about how often it updates its information on prices and availability of goods.
• Use a number of different sites. Expressions like ‘we’ve found the best deal’ or ‘we’ve searched the market’ don’t guarantee you are seeing every available offer in the market, so always check out what is on offer on a number of different sites.
• Know who you are doing business with. Check whether the site tells you the identity of the business (not just the name of the website) and their business address. By law they have to do so.
• Do your homework. If you can, use an accredited site as they have met certain standards for accreditation. Some websites comparing energy products are accredited by Consumer Focus and some telecoms comparison websites are accredited by Ofcom. Some financial services websites are compared by the Government backed Money Advice Service.
• Problem or complaint? Citizens Advice can help Some sites may tell you that they are not liable if they make mistakes or mislead you; this may not in fact be the case. If you want to complain but aren’t sure how, Citizens Advice can help you to direct your complaint to the relevant person. Visit www.adviceguide.org.uk or call the Citizens Advice consumer helpline on 08454 04 05 06
The OFT’s 2007 market study into internet shopping estimated that if consumers used price comparison websites as effectively as they could they would stand to gain additional savings of £150m – £240m per year.

Creative Industries Expo for Young People

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Young people across the Bradford District are being given the opportunity to learn from music and media industry experts at a special Music Expo.
Music Expo offers young people aged between 13 and 19 the opportunity to meet professionals within the creative industries. They will also be able to explore the different qualifications and career pathways that are open to them if they want to pursue a career within music and media.
The evening will include industry representatives showcasing their work. There will be stalls and activities for young people, including an opportunity for singers, rappers, and MCs to contribute to a collaborative CD that will be made on the day.
Music Expo will take place on 29 November 2012 from 6pm-9pm at Culture Fusion, 12 Thornton Road, Bradford. Entry is free.
The event has been organised by Bradford Youth Service with the support of Bradford University and a number media companies.
Mick Chandsoor, Arts & Environment Worker, Bradford Youth Service, said: “We held a similar event three years ago and more than 100 young people took part. Music Expo is a fun way for young people to find out more and gain practical advice from industry experts who know the business.”
Cllr Ralph Berry, Portfolio Holder for Children’s Services, said: “This will be a fantastic opportunity for young people who are thinking about a career in music and the creative industries to find out what their first step could be, and what qualifications are open to them.”

DVK Proud to Support Sikh Awards

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DVK Group Ltd, a global, boutique commodity trading and finance company, was proud to support the third annual The Sikh Awards which took place last month at the Park Plaza in London.
The Sikh Awards is an established institution, held to recognise the contribution and excellence of the international Sikh community across a variety of industry sectors. Over 750 guests attended, including Baroness Sayeeda Warsi, BBC’s Head of religious programming Mr Tommy Nagra, Ms Charlotte Leslie MP, Mr Paul Uppal MP and Dr Kate Wharton from the Archbishop of Canterbury’s office.
DVK Group sponsored the award for Sikhs in Seva, which recognised an individual for his or her contribution to society through means of Seva (selfless voluntary service) or for an outstanding individual who has excellently demonstrated exceptional leadership and vision when helping others. Sikhs in Seva was awarded to Mr Surendra Singh Khandari from the United Arab Emirates. Surendra Singh is the youngest president of the Automobile Association of Andra Pradesh and the youngest captain of the Emirates Gold Club in Dubai. He is now the Chairman of Al Dovbowi Group, one of the largest tyre distribution companies in the world.
Other esteemed award recipients included Britain’s richest man Lakshmi Mittal, who received the Special Recognition Award from the world Sikh community for his joint venture between State-owned Hindustan Petroleum Corporation and Mittal Energy Ltd, in the Punjab region of India, Harpal Singh, CEO of Cancer Research who was awarded the Sikhs In Charities award, Ms Rashpal Kaur from India who was awarded the Sikhs In Sports award for her unprecedented sporting achievements despite losing her sight, and Mr Rajinder Singh Baryan from Kenya who was awarded the coveted Sikhs In Business – Businessman award.

Number of Free-to-Use ATMs Climbs to Record High

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In its annual report published November 23, 2012, LINK’s Consumer Council welcomes the increase in the number of free-to-use cash machines installed in the UK’s more deprived areas.
The full report can be downloaded by following this link http://www.link.co.uk/SiteCollectionDocuments/Consumer_Committee_Report_2012.pdf
The number of free-to-use cash machines in the UK now totals 45,033, which accounts for 68% of the UK’s 65,884 ATMs.
Access to cash has been a long-standing focus for the industry. In 2006 LINK Scheme members, the government and local communities across the UK came together to identify areas with a lack of access to free cash. Since then more than 850 free-to-use ATMs have been installed in deprived areas, with 95% of all the key areas identified having one of these machines within the area or within one kilometre from the area’s centre.
Dr. Ken Andrew, Chairman of LINK’s Consumer Council commented:
“The increase in the number of free-to-use ATMs underlines the effectiveness of the industry in providing free access to cash across the whole of the UK. These new cash machines have brought local free-of-charge access to cash to around 2 million people previously without a free-to-use cash machine in their area.”

Other notable achievements highlighted in the Consumer Council report include:
• LINK’s charity donations scheme, which went live on 20 June 2012. Customers can now make charitable donations at over 12,345 ATMs, to over 45 different charities.
• The number of ATMs dispensing £5 notes grew to 5,435 and nearly £200 million is withdrawn in fivers from LINK ATMs per month.
• The LINK ATM Scheme played an active role in maintaining cash distribution during the London 2012 Olympics.
• The LINK ATM Scheme sponsors a dedicated ATM PhD at Central Saint Martins College.