Awareness and knowledge of takaful in Malaysia: a survey of Malaysian consumers

Insurance, nowadays, is no longer a luxury rather a necessity. Government regulations and employment are two very important factors that contribute to the huge overall growth of the insurance industry because they force general public to buy it. The concept behind conventional insurance is contrary...

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Main Authors:	Hassan, Rusni, Salman, Syed Ahmed, Kassim, Salina, Ab Rashid, Hafiz-Majdi
Format:	Article
Language:	English
Published:	Center for Promoting Ideas, USA 2018
Subjects:	HB126.4 Islamic Economics HG3368 Islamic Banking and Finance HG8719 Islamic Insurance Takaful
Online Access:	http://irep.iium.edu.my/69319/ http://irep.iium.edu.my/69319/ http://irep.iium.edu.my/69319/ http://irep.iium.edu.my/69319/1/69319_Awareness%20and%20Knowledge%20of%20Takaful_article.pdf

id	iium-69319
recordtype	eprints
spelling	iium-693192019-02-18T02:18:47Z http://irep.iium.edu.my/69319/ Awareness and knowledge of takaful in Malaysia: a survey of Malaysian consumers Hassan, Rusni Salman, Syed Ahmed Kassim, Salina Ab Rashid, Hafiz-Majdi HB126.4 Islamic Economics HG3368 Islamic Banking and Finance HG8719 Islamic Insurance Takaful Insurance, nowadays, is no longer a luxury rather a necessity. Government regulations and employment are two very important factors that contribute to the huge overall growth of the insurance industry because they force general public to buy it. The concept behind conventional insurance is contrary to the principles of Islam and socio-ethical perspective. The purpose of Shari’ah is to create and maintain a harmonious social environment by moulding our conducts in all aspects of our ritual and daily life.Takaful industry remains to be relevant even after three decades of its introduction due to the continuous demands from the multiracial and multi-ethnic participants from various backgrounds. The said industry celebrates the contributions of their stakeholders, namely the Takaful operators, Shari’ah advisors and the participants or customers. Additional credit for the progressive development of Takaful industry goes to the consistent guidelines from the regulators. However, one factor that hinders further development of Takaful industry is the lack of awareness of its presence and purpose in Malaysian market. Therefore, this paper was designed to examine the knowledge and awareness of Takaful among Malaysian consumers in Malaysia by collecting primary data through survey questionnaires. Out of the 600 questionnaires that were sent to consumers in greater Malaysia i.e. Kuala Lumpur and Selangor, we received 503 questionnaires. Random selection was used to select the sample from the known population. The findings show that out of the 503 respondents, 124 have no knowledge of Takaful and 45% are not aware that Takaful policy holders share risks mutually. Also, 33.2, %, 38.8% and 37.2% do not know that Takaful is free from gambling, uncertainty, and interest.70.2% respondents, however, think that Takaful products comply with Shari’ah. Center for Promoting Ideas, USA 2018-11 Article PeerReviewed application/pdf en http://irep.iium.edu.my/69319/1/69319_Awareness%20and%20Knowledge%20of%20Takaful_article.pdf Hassan, Rusni and Salman, Syed Ahmed and Kassim, Salina and Ab Rashid, Hafiz-Majdi (2018) Awareness and knowledge of takaful in Malaysia: a survey of Malaysian consumers. International Journal of Business and Social Science, 9 (11). pp. 45-53. ISSN 2219-1933 E-ISSN 2219-6021 http://ijbssnet.com/journals/Vol_9_No_11_November_2018/6.pdf 10.30845/ijbss.v9n11p6
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB126.4 Islamic Economics HG3368 Islamic Banking and Finance HG8719 Islamic Insurance Takaful
spellingShingle	HB126.4 Islamic Economics HG3368 Islamic Banking and Finance HG8719 Islamic Insurance Takaful Hassan, Rusni Salman, Syed Ahmed Kassim, Salina Ab Rashid, Hafiz-Majdi Awareness and knowledge of takaful in Malaysia: a survey of Malaysian consumers
description	Insurance, nowadays, is no longer a luxury rather a necessity. Government regulations and employment are two very important factors that contribute to the huge overall growth of the insurance industry because they force general public to buy it. The concept behind conventional insurance is contrary to the principles of Islam and socio-ethical perspective. The purpose of Shari’ah is to create and maintain a harmonious social environment by moulding our conducts in all aspects of our ritual and daily life.Takaful industry remains to be relevant even after three decades of its introduction due to the continuous demands from the multiracial and multi-ethnic participants from various backgrounds. The said industry celebrates the contributions of their stakeholders, namely the Takaful operators, Shari’ah advisors and the participants or customers. Additional credit for the progressive development of Takaful industry goes to the consistent guidelines from the regulators. However, one factor that hinders further development of Takaful industry is the lack of awareness of its presence and purpose in Malaysian market. Therefore, this paper was designed to examine the knowledge and awareness of Takaful among Malaysian consumers in Malaysia by collecting primary data through survey questionnaires. Out of the 600 questionnaires that were sent to consumers in greater Malaysia i.e. Kuala Lumpur and Selangor, we received 503 questionnaires. Random selection was used to select the sample from the known population. The findings show that out of the 503 respondents, 124 have no knowledge of Takaful and 45% are not aware that Takaful policy holders share risks mutually. Also, 33.2, %, 38.8% and 37.2% do not know that Takaful is free from gambling, uncertainty, and interest.70.2% respondents, however, think that Takaful products comply with Shari’ah.
format	Article
author	Hassan, Rusni Salman, Syed Ahmed Kassim, Salina Ab Rashid, Hafiz-Majdi
author_facet	Hassan, Rusni Salman, Syed Ahmed Kassim, Salina Ab Rashid, Hafiz-Majdi
author_sort	Hassan, Rusni
title	Awareness and knowledge of takaful in Malaysia: a survey of Malaysian consumers
title_short	Awareness and knowledge of takaful in Malaysia: a survey of Malaysian consumers
title_full	Awareness and knowledge of takaful in Malaysia: a survey of Malaysian consumers
title_fullStr	Awareness and knowledge of takaful in Malaysia: a survey of Malaysian consumers
title_full_unstemmed	Awareness and knowledge of takaful in Malaysia: a survey of Malaysian consumers
title_sort	awareness and knowledge of takaful in malaysia: a survey of malaysian consumers
publisher	Center for Promoting Ideas, USA
publishDate	2018
url	http://irep.iium.edu.my/69319/ http://irep.iium.edu.my/69319/ http://irep.iium.edu.my/69319/ http://irep.iium.edu.my/69319/1/69319_Awareness%20and%20Knowledge%20of%20Takaful_article.pdf
first_indexed	2023-09-18T21:38:24Z
last_indexed	2023-09-18T21:38:24Z
_version_	1777412975531917312

Awareness and knowledge of takaful in Malaysia: a survey of Malaysian consumers

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