Micro-takaful scheme for the protection of houses belonging to low-income groups in Malaysia

Abstract EN

Purpose – this study aims to assess the availability of micro-tak_aful (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 tak_aful operators and key stakeholders.

findings – findings of the study confirm the importance of micro-tak_aful as a scheme for the protection of lowincome groups.

micro-tak_aful 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-tak_aful schemes for the protection of houses for low-income groups.

this represents another important area that tak_aful operators should take into consideration in their planning.

research limitations/implications – the paper will help the Majlis Agama Islam Negeri-Negeri (MAINs), the regulator, tak_aful operators and government agencies such as Jabatan Wakaf, Zakat dan Haji (JAWHAR) to generate awareness and promote the offering of micro-tak_aful schemes for the protection of houses belonging to low-income groups in Malaysia.

practical implications – in light of the limited availability of micro-tak_aful schemes for the protection of houses for low-income groups, this study argues that tak_aful 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, microtak_aful 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-tak_aful schemes in protecting their houses and home contents, should any defined calamities occur.

the outcomes are necessary for further development of microtak_aful models, specifically for the protection of properties.

the developed model shall be proposed for application in the malaysian tak_aful and housing industry to facilitate low-income groups to obtain protection for their household and home contents.