The Conception and Response of Muslim Community to Takaful Schemes: A Case Study in Bagan Serai, Perak

Abstract

Al-tabarru' and al-mudarabah are the two fundamentals on which Islamic insurance or takaful is constructed. Since the late 1970`s when it was first introduced the takaful industry has grown quite fast especially in countries of Muslim majority. Various products are offered both in the areas of family and general takaful, i.e. long and short terms insurance. The data in the current study are collected by means of a questionnaire administered on a sample of 100 respondents attempt to find out the relationship between understanding of the concept of takaful and participation in takaful schemes, gender, profession and income. The study concludes that there is no relationship between the understanding and the participation with the three variables but there is a positive relationship between understanding of takaful and participation in takaful schemes.