Determinant to islamic insurance

The study investigates the relationships between consumer behavior, consumer awareness and religiosity influence on intention to demand for Takaful cash Waqf. The result of the study shows that there is a positive relationship between consumer behaviors and religiosity influence on intention to demand for Takaful cash Waqf. The study found that consumer awareness is relatively not significance with determinant demand for Takaful, while consumer behavior and religiosity is strong relationship.

Determinant to islamic insurance

It focuses on the relationships among attitude, subjective norm, amount of information AOI and acceptance of Determinant to islamic insurance insurance. For the purpose, the study used existing theory to identify factors, which are of paramount importance to explain the Islamic insurance acceptance.

Multiple regression analyses are employed in order to confirm the relationship of the antecedents involved. We collected valid survey responses. The study found that that attitude, subjective norm, and AOI are influential predictors of Islamic insurance acceptance.

Determinant to islamic insurance

Importantly, it is also of interest for future planning of Islamic insurance products. Policy implications, limitations and future research directions of the study are provided. It is visualized as a pact among a group of members or participants who agree to jointly guarantee among themselves, against loss or damage that may be inflicted upon any of them as defined in the pact Yusof, Participants mutually agree to guarantee each other against defined loss or damaged by contributing funds known as the as tabarru Billah, Tabarru is the core of the takaful system that makes the uncertainty element allowable under the takaful concept.

Explained in more detail, under takaful scheme, participants mutually agree to guarantee and to protect each other against a defined loss or damaged, by jointly providing financial assistance to any members suffering from a loss Redzuan, et al. An Empirical Analysis the principles of co-operation, mudarabah, and tabarru whereby the takaful operator and participants or the beneficiaries share profits made on the contribution accordingly Billah, For muslims, conventional insurance is not consistent with their religion of Islam.

The reasons are twofold. Firstly, the contract between the insurer e. This is termed as gharar. Secondly, the insurance contract per se is riba since the investment made by the insurance companies involves the element of riba.

Thirdly, the excessive element of gharar can lead to the issue of maysir or gambling. Consequently, majority of the juristic scholars came to an agreement that the practice of the conventional insurance is not in line with Islamic business philosophies and thus it is not allowed by the religion of Islam Hamid and Othman, Avoidance of these elements is essential in an insurance system acceptable by the Shariah, and this is where takaful differs when compared with conventional insurance Redzuan, et al.

The presence of tabarru, makes the business of takaful devoid of gharar and gambling tendencies. At the outset, takaful is a type of co-operative insurance based on profit sharing and interest-free investment Yassin, The current study is aimed at explaining the patronage factors for Islamic insurance.

For the purpose, the study is of utmost importance to examine the appropriateness of the TRA model to a newly context of Islamic insurance. The legal basis for the establishment of takaful operators was the Takaful Act, which came into effect in Laldin, The Malaysian Takaful Act acknowledges that takaful is a scheme based on brotherhood, solidarity and mutual assistance which provide for mutual financial aid and assistance to the participants in case of need whereby the participants mutually agree to contribute for the purpose Redzuan, et al.

It was operationalised based on mudarabah principle Kassim, Owing to the remarkable and stable growth over the first eight years of the STMB, a second takaful operator notably Takaful Nasional entered the industry in Moreover, the Malaysian government and regulators are looking to accelerate the expansion of takaful business in tandem with the rapid development of Islamic banking.

Among its key initiatives, BNM over the last two years, has increased the number of takaful operators from two to eight and it is expected to increase it to 10 with the issuance of two new family takaful licenses to foreign participants by Bank Negara Malaysia, Currently, there are ten takaful operators in Malaysia including one international takaful operator.

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In particular, takaful life insurance works both as a savings instrument where participants set their own target amount to accumulate over a certain period and as a protection mechanism in which all participants guarantee each other against certain events that would alter their financial status.

In contrast, takaful non-life insurance work more like a joint guarantee in which all participants contribute their own shares of premiums into a pool and mutually agreed to indemnify those participants who suffer from an insured peril.

Muslim jurists generally agree that takaful insurance is accordance with the Shariah, as halal concepts of tabarru and takaful are deeply embedded on it Maysami and Kwon, Takaful business is one of the fastest-growing segments of the insurance market, with annual growth of 20 percent globally Redzuan, et al.

Takaful grew at a compound annual growth rate of 39 percent over in terms of global takaful premiums, 45 percent in the Gulf Coast Countries, and 28 percent in South East Asia. The comparative growth of global insurance was 7 percent, for the Gulf Coast Country 20 percent and for South East Asia The estimated size of the global takaful premium was USD5.

It has been observed that the principles and practices of takaful, Islamic Insurance is still in the developmental stage but in some countries, it has made significant progress Billah, The takaful industry in Malaysia has consistently registered strong growth in the last 20 years.

It has been proven that the takaful industry to be resilient in the face of intense competition from the more advanced insurance industry. New business premiums for life and family takaful business recorded an increase of 5.

This is, in turn, translated into 40 percent improvement in the excess of income over outgo for life insurance and family takaful business to RM The takaful industry has achieved commendable progress with the takaful funds assets amounting RM How Muslims Make a Decision Regarding Islamic Microfinance Options?

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A Survey of Determinant Factors Journal of Insurance and Financial Management Open Journal Systems. Journal Help. User. Username: Password: Remember me: Notifications.

A Survey of Determinant Factors. Shaheen Mansori, Meysam Safari, Jing Huey Chin. business vol 12 no2 Update 2Feb_Layout 1 5/4/12 PM Page 37 International Journal of Business and Society, Vol. 12 No. 2, , 37 - 54 DETERMINANTS OF ISLAMIC INSURANCE ACCEPTANCE: AN EMPIRICAL ANALYSIS Fithriah Ab.

International Journal of Business and Society, Vol. 12 No. 2, , 37 - 54 DETERMINANTS OF ISLAMIC INSURANCE ACCEPTANCE: AN EMPIRICAL . Cogent Economics & Finance Volume 5, in their comparative study for life insurance and family Takāful in Malaysia also found income as the key demand determinant for life insurance and family Takāful.

Sherif and Azlina Shaairi ( Sherif, M., (Islamic insurance) demand. For insurance and Takāful demand. Determinant of Customer Loyalty in Malaysian Takaful Industry The population of the study will consist of customers who have subscribed to the Islamic insurance products and services.

Self-administered questionnaires are distributed to eight Takaful companies in Malaysia as a study setting for this study. Islamic insurance which is known as takaful is based on the concept of takaful that is developed on three principles: 1) Mutual responsibility 2) Co-operation with each other 3) Protecting one another from any kind of difficulties, disasters and other.

DETERMINANT OF CUSTOMER LOYALTY IN MALAYSIAN TAKAFUL INDUSTTRY | Laila Hassan - pfmlures.com