The country will soon see its first Shari?ah compliant insurance scheme, to be introduced by Pune-based Bajaj Allianz Life Insurance in association with broking firm Parsoli Corporation Ltd?s wholly owned insurance subsidiary, Parsoli Insurance Broking Ltd.

Bajaj Allianz currently has a ?pure fund?, which does not invest in breweries or other industries perceived as ?unethical? under Shari’ah, a senior Bajaj Allianz official said.

Explaining details of the new scheme, Syed Alauddin, CEO, Parsoli Insurance Broking, told FE that the company is awaiting Insurance Regulatory & Development Authority approval for both life and non-life segments.

?We applied for a licence six months ago, which is expected to come in the next two to four months. We will first offer a unit-linked insurance plan (Ulip) in association with Bajaj Allianz,? he said, adding that the insurance scheme would not have any bank-linked interest component.

The company is also negotiating with other insurance companies to introduce similar Sharia’h compliant schemes. ?We are targeting to mop up Rs 150 crore in premia, both in life and general insurance in

FY 2008-09,? Allauddin said. Currently, hardly 0.5% of the country?s 20-crore Muslim population is covered by insurance schemes.

The Ulip scheme will invest in BSE Sensex and mid-cap stocks, 60% of whom are Shari?ah compliant. Apart from insurance schemes, the firm also plans to offer pension schemes with Ulip features.

Referring to the Parsoli?s long-term plans, Allauddin said the company is working on a takaful (an Arabic word meaning ?mutual guarantee?) insurance scheme, which is popular in Malaysia, Indonesia, the Middle East and other countries.