697 research outputs found

    Awareness of flood victims in the east-coast region of Malaysia towards the takaful flood policy: a crosstabulation analysis based on demographic variables / Marhanum Che Mohd Salleh and Nan Noorhidayu Megat Laksana

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    This study is conducted to; first, investigate the level of awareness among flood victims in Malaysia towards takaful policy. Second, to examine differences of demographic background (age, marital status, occupation, education background, and income level) among the victims towards awareness on the takaful. Overall, a total of 536 flood victims located at east-coast area of Malaysia have participated in the survey. Based on descriptive and crosstabulation analyses, majority of the victims were uncertain about the takaful. In terms of background differences, the younger generation were more aware compared to the elders, single victims were more aware than the married, and those who were in high level of education (diploma, degree, and phd holders) were more aware on the existence of takaful. and the needs to have takaful protection. The findings of this study provide important suggestion to offer an affordable micro-takaful policy for future financial protection for the lower income and most vulnerable flood victims in the country. On top of that, various efforts should be done to increase the level of awareness among the Malaysian on the importance of participating in the takaful policy

    An Empirical Study On Factors Influencing Muslim School Teachers' Intention To Engage Into Takaful Protection Plan

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    Kerajaan Malaysia secara terus-terusan berusaha untuk mengukuhkan kedudukan negara sebagai Pusat Hub Islam se-dunia. Sistem Insurans Islam, atau lebih dikenali sebagai Takaful akan terus diperkembangkan agar dapat terus menyumbang dalam industri kewangan negara di bawah Rancangan Malaysia ke-9 (9MP) dengan objektif untuk melahirkan operator-operator takaful yang mampu berdaya saing dengan kelebihan produk-produk takaful. The Malaysian Government continuously undertakes strategic initiatives to strengthen the country's position as the global Islamic hub. Under the 9th Malaysia Plan (9MP), the Islamic Insurance system, or known as Takaful, will be developed to form an important part of the financial system by 2010, with the underlying objective of developing strong and highly capitalized takaful operators offering complete range of takaful products and services

    Comparing the internet to others sources of information for acquiring knowledge on Takaful among Prudential BSN takaful agents

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    Malaysian Takaful industry is progressively taking innovative steps to improvise their marketing efforts via the introduction of Wakala system (agency system). Agents as one of the distribution channel for the industry play a prominent role in educating the society about the objectives and concept of Takaful. This effort may increase the awareness of the society about the Islamic insurance which remain low previously. Thus, this study is an attempt (1) to explore the sources of information that influencing the knowledge of Takaful agents; (2) to compare the contribution of the Internet and other sources of information towards understanding the objectives and concepts of Takaful by Takaful agents; and (3) to analyze the relationships between the usage of the Internet and other sources with the acquisition of knowledge on objectives and concepts of Takaful. A preliminary study was conducted with 50 Takaful agents from Prudential BSN Takaful Berhad. Data were collected through survey research design using questionnaire as the research instrument. Data gathered will be analyzed using SPSS WIN 17 for both descriptive statistics (frequency, percentage, mean and standard deviation) and inferential statistics (paired t-test and step-wise regression analysis)

    TAKAFUL PRODUCTS AND SERVICES IN SAUDI ARABIA: AN EXPLORATION INTO POLICYHOLDER’S PERCEPTIONS AND REGULATORY FRAMEWORK

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    Takaful is the Islamic counterpart of conventional insurance, where it relies on a combination of tabarru (donation) and agency or profit-sharing. The takaful fund is considered a musharaka (partnership) among participants (policyholders). The relationship between the takaful operator and participants’ fund is based on either wakala contracts to manage the underwriting activities, and/or a mudaraba contracts to manage the underwriting or investment activities. Participants (Policyholders) in the takaful scheme are the main stakeholders; their equity consists of ownership of the underwriting activities and the investment funds. Participants’ relationship with Takaful Operators (TOs) depends on the percentage of the contributions premium they pay. They have a claim on assets of these funds in case of liquidation and they are entitled to have their claim paid if there is enough underwriting funds to finance payout; they are also entitled to share in the distribution of any investment and underwriting surplus. However, the only right that participants can exert on the takaful scheme is to disconnect their contractual relationship with the company in case of dissatisfactions. Participants’ undeserved rights might be due to management prioritizing interest towards shareholders as they are the main stewards of the takaful company. In other words, one of the main challenges faced in the takaful industry is shareholders and management discretions, power and activities due to the unclear structure of the takaful operational scheme. The Takaful operational scheme should follow the two-tier hybrid structure (mutual and proprietorship) as it has been identified by the prominent regulatory bodies such as AAOIFI and IFSB. However, almost all regulators, of which the Saud Arabian Monetary Agency (SAMA) is one, treat the TOs as a proprietorship, as it can be easily regulated and supervised which requires an identified share capital and shareholders. The main aim of this study, hence, is to recommend proper protection channels for participants, by conducting two parallel ways research, (i) exploring participants’ perceptions, knowledge, preferences and satisfactions levels about the service and products presented by the TOs in Saudi Arabia (ii) reviewing and comparing the current directives and laws imposed by the Saudi insurance regulatory authorities with the standards and polices imposed by the international insurance and takaful bodies. In fulfilling the aim of the study, primary data collection research was adopted through a survey questionnaire technique. The questionnaire was structured with 4 main dimensions (Disclosure, Knowledge, Preference and Satisfaction) with a total of 26 variables to cover the research objectives and themes. The survey questionnaire was distributed to 9 TOs in Jeddah, Saudi Arabia. A total of 300 out of 500 returned questionnaires were complete and found fit for analysis purposes. The data were analysed using various statistical analysis techniques ranging from simple frequency distribution analysis to the more advanced analyses such as non-parametric statistical analysis, Spearman’s correlation and multinomial logistic regression. In general, the results of the study show that participants’ overall perceptions and knowledge on TOs services and products is low, while participants reported high overall preferences which implies that participants are demanding more services from the TOs as they have more wants and needs. In term of satisfaction levels, participants reported a weak to moderate satisfaction levels, as a result of participants’ low perception, weak knowledge and high preferences which was obvious from the significant relationship between participants perceptions, knowledge and preferences as independent variables with participants’ satisfaction levels as dependant variables. In other words, in order for the TOs to satisfy their participants, they need to disclose more detailed information about different sorts of financial returns (investment return and underwriting surplus), as participants are financially motivated and there is no effect at all for religious motivation. The results of reviewing and comparing SAMA with the international insurance and takaful bodies, indicated that SAMA did not implement directive laws that address the takaful business nor any directive that address Shari’ah issues. Accordingly, it is highly recommended that SAMA adopts the well-established Corporate Governance and Market Conduct & Disclosure standards and polices that have been set by the international bodies such as AAOIFI and IFSB for better protection for the takaful participants in Saudi Arabia. The results of the research have established effective instrumental tools to measure the desired environment that should be available for the perspective policyholders and participants for their ultimate protection. These tools are based on participants’ perceptions, knowledge, preferences and satisfaction levels and based on the country’s regulatory assessments to support and protect participants’ and policyholders’ rights in the takaful fund

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

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    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

    Awareness of Microtakaful Development among Low-Income Earners in Malaysia

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    Malaysia is the third largest takaful market globally and the takaful sector in Malaysia shows sound growth in 2022. Takaful had a penetration rate of 20.1% in 2022, up from 18.6% the previous year. However, only 25% of adult employees in the low-income group have some form of life insurance or family takaful cover, in contrast with 59% of those who are employed in the overall population who have takaful or insurance protection. The Malaysian population can be classified into three income segments: the T20 group, the M40 group and the B40 group. This study will only focus on the B40 group with a median income of RM3,860.  Microtakaful is a kind of takaful product entailed for addressing the financial needs of households with low incomes in times of significant expenses. The main objective of this study was to examine the factors influencing the awareness of microtakaful development among the low-income group (B40). This study examines the relationship between (i) income level (ii) knowledge, and (iii) loss of exposure to the awareness of microtakaful. Data was collected by distributing 320 questionnaires to the residents in (PPR) Kerinchi Lembah Pantai, Kuala Lumpur. Based on the findings, it can be concluded that the three independent variables, namely income level, knowledge, and loss exposures, have a strong positive relationship with microtakaful awareness. However, it is found that income level has the biggest impact on the awareness of microtakaful

    Uptake of health insurance among Muslims in Nairobi county, Kenya

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    Introduction: In Kenya and the world across, health insurance has been reckoned as an important health policy that serves to protect households from the direct financial consequences of health care and meet the  Sustainable Development Goal of Universal Health Coverage and Poverty Eradication. However, health insurance uptake has remained to be a major challenge for universal health care coverage especially amongKenyan Muslims who have conflicting religious faith towards  conventional health insurance. This study had two main objectives: (1) to determine level of uptake of health insurance among Muslims and (2) to examine the role of religion in health insurance uptake among Muslims.Methods: The study adopted a cross-sectional study design.  Post-stratified sampling was used to select 389 respondents who participated in the survey questionnaires. Descriptive statistics, cross-tabulation and Test of independence (Chi-square) were used to analyze quantitative data using SPSS Version 20. Results: Findings revealed that only 86(22%) of Muslims were enrolled in a health insurance scheme. Among the 86 Muslims who had an insurance cover, Majority were enrolled in National Health Insurance Fund (65,70.6%) while 21(29.4%) were enrolled in private health insurance schemes. Among the 303 Muslims who had no insurance cover, 285 (94.1%) preferred being enrolled in Takaful Health insurance whichis Shariah Compliant. Religion played a significant role on choice and enrollment of Muslims to health insurance schemes. Religious beliefs andShariah teachings had a statistically significant relationship with uptake of health insurance (p < 0.05).Conclusion: Uptake of health insurance among Muslims is low despite the growing population of Muslims in Kenya partly due to Muslims strong religious belief and Shariah laws, which prohibits them from enrolling into conventional insurance hence limiting freedom of  individual decisions on the insurance schemes to enroll in. Despite high demand for health insurance products among Muslims, there lacks health insurances products aligned to the religious beliefs and needs of Muslim hence exposing them to hefty medical bills which deepens poverty and inaccessibility to basic health car

    The determinants of life insurance ownership : the mediating effect of risk perception

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    The conventional life insurance and family Takaful market penetration rate was at 54.6 percent in 2015 indicating that about half of the Malaysian population is still uninsured. This study is conducted to investigate (a) the relationship of life insurance ownership with demographic and psychographic factors, and (b) the mediating effect of risk perception on the relationship between psychographic factors (i.e. personal value, risk attitude and trust) and life insurance ownership. A stratified random sampling technique was used to collect data from July to December 2015 in the four states located at the Northern regions of Malaysia, namely Kedah, Perlis, Penang and Perak. A total of 408 individuals approached at their work places and shoppers intercepted in the malls were surveyed. The data collected were analysed using binary logistic and multiple regressions. The respondents in their 20’s and 30’s are found more likely to own life insurance as compared to the respondents aged below 20 years old. Most of the life insurance policyholders are males, Chinese and Indian, and those who are middle income earners. The findings on psychographic factors show that trust has a significant positive relationship with life insurance ownership, and there is a significant mediating effect of risk perception on the relationship between trust and life insurance ownership. The respondents who trust their life insurance agents are found to have low risk perception of the purchase of life insurance. Thus, they tend to own life insurance. This study proposes that extensive ownership promotions of family Takaful and micro-insurance be targeted to Muslim individuals and low-income earners. The actions in fulfilling prospective policyholders’ needs, building trust in life insurance agents and creating awareness about the importance of life insurance are vital to encourage those who do not own life insurance to purchase life insurance
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