Does Religiosity influence Takaful Participation?
Malaysia is a multicultural and multiconfessional country. As of the 2010 Population and Housing Census, 61.3 percent of the population practices Islam; 19.8 percent Buddhism; 9.2 percent Christianity; 6.3 percent Hinduism; and 1.3 percent traditional Chinese religions. The religion with element...
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Main Authors: | , |
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Format: | Conference or Workshop Item |
Language: | English |
Published: |
2016
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Subjects: | |
Online Access: | http://eprints.unisza.edu.my/767/1/FH03-FESP-17-09117.pdf http://eprints.unisza.edu.my/767/ |
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Summary: | Malaysia is a multicultural and multiconfessional country. As of the 2010
Population and Housing Census, 61.3 percent of the population practices
Islam; 19.8 percent Buddhism; 9.2 percent Christianity; 6.3 percent
Hinduism; and 1.3 percent traditional Chinese religions. The religion with
element of haram prohibition is Islam. It is a religion governed by rules and
customs built on the five pillars; the five basic acts in Islam which is
mandatory by believers and are the foundation of Muslim life: shahadah
(witnessing); salat (prayer); zakah or charity; sawn or fasting, and hajj or
pilgrimage. Malaysia’s Takaful (Islamic insurance) has significant
opportunities for growth as its penetration rate is still low at 5.2% of gross
domestic product (GDP). The low penetration rate of takaful in the country
is due to the lack of awareness on takaful-related products as well as the
issue of affordability, especially among the lower group segments of the
society. The objective of this paper is to examine the relationship between
religious commitment and Takaful participation. The samples were selected
consisting of conventional life insurance policyholders residing in East
Coast region Malaysia. The findings indicate that although religious
commitment influence Takaful participation, there are other factors restrict
the participation. |
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