TY - JOUR
T1 - Micro-takāful scheme for the protection of houses belonging to low-income groups in Malaysia
AU - Mohd Fauzi, Puteri Nur Farah Naadia
AU - Laldin, Mohamad Akram
N1 - Funding Information:
This research is funded by the Heriot-Watt University Malaysia (HWUM); EmPOWER Research Grant Scheme (EmRGS) 2021/2022; Project ref no. EGIS/EmRGS/2021/03 (Title: Development of a model for the protection of houses and home contents belonging to/occupied by the low-income groups via micro protection plans in Malaysia).
Publisher Copyright:
© 2022, Puteri Nur Farah Naadia Mohd Fauzi and Mohamad Akram Laldin.
PY - 2022/12/8
Y1 - 2022/12/8
N2 - Purpose: This study aims to assess the availability of micro-takāful (micro-Islamic insurance) schemes for the protection of houses belonging to low-income groups in Malaysia. Design/methodology/approach: The study is conducted via desk research and interview discussions with representatives from takāful operators and key stakeholders. Findings: Findings of the study confirm the importance of micro-takāful as a scheme for the protection of low-income groups. Micro-takāful schemes in Malaysia are, however, skewed towards the protection of health, life and family. The study finds little industry interest in the provision of micro-takāful schemes for the protection of houses for low-income groups. This represents another important area that takāful operators should take into consideration in their planning. Research limitations/implications: The paper will help the Majlis Agama Islam Negeri-Negeri (MAINs), the regulator, takāful operators and government agencies such as Jabatan Wakaf, Zakat dan Haji (JAWHAR) to generate awareness and promote the offering of micro-takāful schemes for the protection of houses belonging to low-income groups in Malaysia. Practical implications: In light of the limited availability of micro-takāful schemes for the protection of houses for low-income groups, this study argues that takāful operators should offer and promote them. Social implications: The study is significant for fulfilling the need of low-income groups in Malaysia to protect their houses in the event of catastrophes so that they will not suffer significant losses. Rather, micro-takāful will assist them in improving their standard of living. Originality/value: This study promotes the idea that it is essential to facilitate the low-income groups with appropriate coverage made available to them; micro-takāful schemes in protecting their houses and home contents, should any defined calamities occur. The outcomes are necessary for further development of micro-takāful models, specifically for the protection of properties. The developed model shall be proposed for application in the Malaysian takāful and housing industry to facilitate low-income groups to obtain protection for their household and home contents.
AB - Purpose: This study aims to assess the availability of micro-takāful (micro-Islamic insurance) schemes for the protection of houses belonging to low-income groups in Malaysia. Design/methodology/approach: The study is conducted via desk research and interview discussions with representatives from takāful operators and key stakeholders. Findings: Findings of the study confirm the importance of micro-takāful as a scheme for the protection of low-income groups. Micro-takāful schemes in Malaysia are, however, skewed towards the protection of health, life and family. The study finds little industry interest in the provision of micro-takāful schemes for the protection of houses for low-income groups. This represents another important area that takāful operators should take into consideration in their planning. Research limitations/implications: The paper will help the Majlis Agama Islam Negeri-Negeri (MAINs), the regulator, takāful operators and government agencies such as Jabatan Wakaf, Zakat dan Haji (JAWHAR) to generate awareness and promote the offering of micro-takāful schemes for the protection of houses belonging to low-income groups in Malaysia. Practical implications: In light of the limited availability of micro-takāful schemes for the protection of houses for low-income groups, this study argues that takāful operators should offer and promote them. Social implications: The study is significant for fulfilling the need of low-income groups in Malaysia to protect their houses in the event of catastrophes so that they will not suffer significant losses. Rather, micro-takāful will assist them in improving their standard of living. Originality/value: This study promotes the idea that it is essential to facilitate the low-income groups with appropriate coverage made available to them; micro-takāful schemes in protecting their houses and home contents, should any defined calamities occur. The outcomes are necessary for further development of micro-takāful models, specifically for the protection of properties. The developed model shall be proposed for application in the Malaysian takāful and housing industry to facilitate low-income groups to obtain protection for their household and home contents.
KW - Insurance
KW - Low-income groups
KW - Micro-takāful
KW - Properties
KW - Protection
UR - http://www.scopus.com/inward/record.url?scp=85138220021&partnerID=8YFLogxK
U2 - 10.1108/IJIF-05-2021-0090
DO - 10.1108/IJIF-05-2021-0090
M3 - Article
AN - SCOPUS:85138220021
SN - 2289-4365
VL - 14
SP - 303
EP - 314
JO - ISRA International Journal of Islamic Finance
JF - ISRA International Journal of Islamic Finance
IS - 3
ER -