Abstract:
Takaful which can be called as Islamic insurance has been introduced as an alternative to the
conventional insurance. It is based on the principle of Tabarru and is free from the interest and
uncertainties which are prohibited in the Shariah for its followers. As such, the objective of this paper
is to examine the perception on Takaful among the people in the South Eastern University that is located
in Oluvil, Sri Lanka. Further, the study attempts to identify reasons and factors that the South Eastern
University Community has a negative perception on Takaful. For this purpose, a quantitative method is
adopted. The samples were randomly selected and questionnaires were distributed for collecting data.
Based on primary and secondary data, the study finds that the majority of the respondents do not
understand as to what Takaful is. Despite that, they prefer Takaful to conventional insurance. The study
concludes with suggestions and recommendations which are expected to be fruitful to the Takaful
companies in Sri Lanka for their future endeavours.
