Awareness of Islamic insurance and conventional insurance among Sri Lankan: a comparative study

Abstract

The contemporary concept of Takāful can be explained as providing financial assistance to the participants as a basis of mutual help, brotherhood and solidarity if the participants face misfortune. Nowadays in Sri Lanka conventional and Islamic Insurance are conceptualized by offering products and services. The aim of this study is to check the Awareness of Islamic and conventional Insurance among Sri Lankan public. Therefore, the respective sample of 226 respondents were participated in this survey. Further, the reliability test of the accumulated data was inspected with Cronbach's Alpha test. For the data collection a set of questionnaires using Google structure and shared through E-Mail and WhatsApp media around Sri Lanka during the period between first week of October and first week of November 2020. Finding of this study indicated that the majority of the customers mentioned that they are using insurance due to they are engaged voluntarily in this (48.7%). It gives a good view of Takaful since they keen interest in Takaful without any compulsion. Although, 35.4% of them engaged with insurance policy by compulsion. And 30.1% of the participants had experience with Islamic insurance for more than 3 years. This ensures that they are satisfied with this insurance strategy. Further, in this study, the researchers worked on measuring the awareness of Islamic Insurance compare to Conventional Insurance among Sri Lankan; but it can be conducted gender wise or religion wise, to improve the awareness of Islamic Insurance among other communities, which can lead to increase the customers of Islamic Insurance organizations.