The impact of internal forces on acceptance of takaful by insurance policy-holders in India
Purpose – Insurance is a modern risk-management tool. Although the idea is novel, its practice is not free of interest, uncertainty and elements of gambling. Takaful has been introduced as an alternative to modern insurance. India has an established insurance industry, and although the country has...
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| Format: | Article |
| Language: | English English |
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Emerald Group Publishing Limited
2018
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| Online Access: | http://irep.iium.edu.my/72820/ http://irep.iium.edu.my/72820/ http://irep.iium.edu.my/72820/1/72820%20The%20impact%20of%20internal%20forces.pdf http://irep.iium.edu.my/72820/2/72820%20The%20impact%20of%20internal%20forces%20SCOPUS.pdf |
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iium-728202019-06-24T03:59:38Z http://irep.iium.edu.my/72820/ The impact of internal forces on acceptance of takaful by insurance policy-holders in India Salman, Syed Ahmad Ab Rashid, Hafiz-Majdi Htay, Sheila Nu Nu HG8011 Insurance Purpose – Insurance is a modern risk-management tool. Although the idea is novel, its practice is not free of interest, uncertainty and elements of gambling. Takaful has been introduced as an alternative to modern insurance. India has an established insurance industry, and although the country has the second largest Muslim population in the world, takaful has not been introduced there. Moreover, no research has examined how internal forces affect policy-holders to buy new insurance products such as takaful in India. This study aims to examine whether internal factors influence individual insurance policy-holders to open up to takaful. As internal factors reflect the innovative nature of policy-holders, this paper seeks to determine whether there is significant difference in the innovative nature of two independent sample groups (e.g. between Muslims and non-Muslims) in participating in takaful. Design/methodology/approach – New product adoption theory is used in developing the hypotheses and a questionnaire. Snowball sampling method is used in this survey, with a sample size of 909 respondents, including Muslim and non-Muslim policy-holders. The internal forces that encourage potential policy-holders to participate in takaful is the independent variable here, while the respondents’ actual willingness to participate in takaful is the dependent variable. Religion and level of education are used as control variables, and regression and T-tests are performed to analyze the data. Findings – Results show that the internal factors have significant impact at 1 per cent on the acceptance of takaful by policy-holders. There is also a significant difference in the innovative nature between Muslims and non-Muslims. Mean values from the T-test show that Muslims are more innovative than non-Muslims in India, offering a good sign for India to start offering takaful, as Muslims could be the core customer base. Research limitations/implications – This study focuses on internal factors influencing individual policy-holders’ willingness to participate in takaful. The findings can be the starting point for future research exploring the influence of external factors on such willingness to participate with potential benefits to local authorities, investors, insurance companies and the public in India. Originality/value – This study provides crucial information about the demand side of takaful in India. The innovative nature of Indian policy-holders signals positive potential for operators to offer takaful in India and to concerned regulatory bodies to expedite its introduction to the market. Emerald Group Publishing Limited 2018-10 Article PeerReviewed application/pdf en http://irep.iium.edu.my/72820/1/72820%20The%20impact%20of%20internal%20forces.pdf application/pdf en http://irep.iium.edu.my/72820/2/72820%20The%20impact%20of%20internal%20forces%20SCOPUS.pdf Salman, Syed Ahmad and Ab Rashid, Hafiz-Majdi and Htay, Sheila Nu Nu (2018) The impact of internal forces on acceptance of takaful by insurance policy-holders in India. Journal of Islamic Accounting and Business Research, 9 (5). pp. 673-686. ISSN 1759-0817 https://www.emeraldinsight.com/doi/abs/10.1108/JIABR-03-2016-0027 |
| repository_type |
Digital Repository |
| institution_category |
Local University |
| institution |
International Islamic University Malaysia |
| building |
IIUM Repository |
| collection |
Online Access |
| language |
English English |
| topic |
HG8011 Insurance |
| spellingShingle |
HG8011 Insurance Salman, Syed Ahmad Ab Rashid, Hafiz-Majdi Htay, Sheila Nu Nu The impact of internal forces on acceptance of takaful by insurance policy-holders in India |
| description |
Purpose – Insurance is a modern risk-management tool. Although the idea is novel, its practice is not free of
interest, uncertainty and elements of gambling. Takaful has been introduced as an alternative to modern insurance.
India has an established insurance industry, and although the country has the second largest Muslim population in
the world, takaful has not been introduced there. Moreover, no research has examined how internal forces affect
policy-holders to buy new insurance products such as takaful in India. This study aims to examine whether internal
factors influence individual insurance policy-holders to open up to takaful. As internal factors reflect the innovative
nature of policy-holders, this paper seeks to determine whether there is significant difference in the innovative
nature of two independent sample groups (e.g. between Muslims and non-Muslims) in participating in takaful.
Design/methodology/approach – New product adoption theory is used in developing the hypotheses
and a questionnaire. Snowball sampling method is used in this survey, with a sample size of 909 respondents,
including Muslim and non-Muslim policy-holders. The internal forces that encourage potential policy-holders
to participate in takaful is the independent variable here, while the respondents’ actual willingness to
participate in takaful is the dependent variable. Religion and level of education are used as control variables,
and regression and T-tests are performed to analyze the data.
Findings – Results show that the internal factors have significant impact at 1 per cent on the acceptance of
takaful by policy-holders. There is also a significant difference in the innovative nature between Muslims and
non-Muslims. Mean values from the T-test show that Muslims are more innovative than non-Muslims in
India, offering a good sign for India to start offering takaful, as Muslims could be the core customer base.
Research limitations/implications – This study focuses on internal factors influencing individual
policy-holders’ willingness to participate in takaful. The findings can be the starting point for future research
exploring the influence of external factors on such willingness to participate with potential benefits to local
authorities, investors, insurance companies and the public in India.
Originality/value – This study provides crucial information about the demand side of takaful in India.
The innovative nature of Indian policy-holders signals positive potential for operators to offer takaful in India
and to concerned regulatory bodies to expedite its introduction to the market. |
| format |
Article |
| author |
Salman, Syed Ahmad Ab Rashid, Hafiz-Majdi Htay, Sheila Nu Nu |
| author_facet |
Salman, Syed Ahmad Ab Rashid, Hafiz-Majdi Htay, Sheila Nu Nu |
| author_sort |
Salman, Syed Ahmad |
| title |
The impact of internal forces on acceptance of takaful by
insurance policy-holders in India |
| title_short |
The impact of internal forces on acceptance of takaful by
insurance policy-holders in India |
| title_full |
The impact of internal forces on acceptance of takaful by
insurance policy-holders in India |
| title_fullStr |
The impact of internal forces on acceptance of takaful by
insurance policy-holders in India |
| title_full_unstemmed |
The impact of internal forces on acceptance of takaful by
insurance policy-holders in India |
| title_sort |
impact of internal forces on acceptance of takaful by
insurance policy-holders in india |
| publisher |
Emerald Group Publishing Limited |
| publishDate |
2018 |
| url |
http://irep.iium.edu.my/72820/ http://irep.iium.edu.my/72820/ http://irep.iium.edu.my/72820/1/72820%20The%20impact%20of%20internal%20forces.pdf http://irep.iium.edu.my/72820/2/72820%20The%20impact%20of%20internal%20forces%20SCOPUS.pdf |
| first_indexed |
2023-09-18T21:43:14Z |
| last_indexed |
2023-09-18T21:43:14Z |
| _version_ |
1777413279611617280 |