Abstract:
Insurance as an important risk management tool that widely used in business and financial
enterprises since long period of time. Takaful has been introduced as an alternative mechanism of
risk management complying Islamic law and eliminating the controversial aspects in conventional
insurance practices. The study was conducted to analyze the participants on Takaful concept how they
differentiate Takaful from conventional insurance. The mix method of qualitative and quantitative was
applied in this survey for the statistical analysis. The study identified that most of the participants
knew the Takfaful is a Shari’ah compliant insurance but significant number of participants don’t
aware the risk sharing technique of Takaful. These key findings shows that Takaful has been well
accepted by the industry as well as people regardless of their religious faith. But Most of Takaful
users don’t aware the fundamental difference of Takaful. Thus, there is a need to educate all Takaful
clients especially educating Muslim participants is necessary as it is their religious requirement to
know their deals and deeds.
