Factors inflencing the choice of takaful over conventional insurance: the case of academician in Universiti Malaysia Kelantan City Campus

The present research attempts to study the factors that influence academicians in Universiti Malaysia Kelantan (UMK) City Campus to choose Takaful over conventional insurance. The study provides an overview of Malaysia Takaful industry. A survey questionnaires was conducted to collect relevant and recent data on consumer perception relating to their respective Takaful companies. The finding from the questionnaire led to the following major propositions; that Takaful customers have knowledge towards concept of Takaful and the requirement of Shariah compliance; Takaful is necessary for Muslim as a replacement of conventional insurance; Takaful customers have awareness on the relationship between Takaful and religion in contemporary business; the roles of individual pertaining the permissibility activity of Takaful and its benefits as acts of worship; the necessity of protection from loss exposure affect by uncertainty or unexpected outcome in future; and the good perception toward Takaful product among academicians in UMK City Campus. Some implications have been discussed and suggestions have been offered for improving the choices of Takaful over conventional insurance in future