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

Abstract

Al-tabarru' and al-muddrabah are the two fundamentalson which Islamic insurance or takdful is constructed. Sincethe late 1970''s when it was first introduced the takafulindustry has grown quite fast especially in countries ofMuslim majority. Various products are offered both in theareas of family and general takaful, i.e. long and shortterms insurance. The data in the current study arecollected by means of a questionnaire administered on asample of 100 respondents attempt to find out therelationship between understanding of the concept oftakaful and participation in takaful schemes, gender,profession and income. The study concludes that there isno relationship between the understanding and theparticipation with the three variables but there is apositive relationship between understanding of takaful andparticipation in takaful schemes.