Takaful Product Satisfaction

1. INTRODUCTION

1. Introduction

In this section, it include of background of the study, problem statement, research objective, research question, the hypotheses, significant of the study, as well as definition of the term. This research focussed on the Acceptance of Takaful product among of Kota Bharu’s citizen. Takaful was incorporated in Malaysia on the 29th November 1984 compare to Insurance that has existence for many centuries.

According from Bank Negara website’s, Takaful derived from the Arabic word which is Kafala’ that means joint guarantee, whereby a group of participants agree to jointly guarantee among themselves against a define loss. Md Razak, Idris. R, Md Yusuf. M,Jaafar. W, and Ali. M(2013) found that by choosing Takaful, all the rules and guideline are based on Shariah rules and prohibited from Riba (interest), Gharar (uncertainty) and Maisir (gambling). So, people may choose either they want to use insurance or Takaful depends on their intention.

Takaful business is one of the fastest – growing segments of the insurance market. This can be proved by Jacky Lim (2010), that Takaful operators have growth in the present day with the average of 20% per year currently. Although Takaful are one of the fastest – growing segments, there are still many people which do not know what Takaful is all about and the term Takaful itself since it comes from Arabic name. Furthermore, people may be worried regarding of benefits they will get if they invest in Takaful compare to insurance.

Even the market share of Takaful is not higher as compared to Insurance, but in Malaysia Takaful operators has become greater. Table 1.0 show the list of Takaful Operator in Malaysia.

Table 1: The List of Takaful Operator in Malaysia