Awareness of the Differences Between Islamic Insurance and Conventional Insurance amongst Students of Islamic Studies in Sri Lanka
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Abstract
The purpose of this study is to assess the level of awareness and understanding of Takaful, an Islamic insurance scheme, as compared to traditional insurance among students of Islamic Studies in Sri Lanka. Despite the growing popularity of Takaful in the country, there is a notable lack of awareness and understanding of this concept among Sri Lankans. By conducting a survey among Sri Lankan students, this research seeks to determine the level of awareness and acceptance of Takaful, while identifying the factors that influence this perception. The research methodology employed was to collect data through questionnaires distributed to customers in Sri Lanka. The findings indicate that although there is a growing demand for Takaful in the country, a significant portion of the population is either unaware of its existence or hesitant to adopt it due to prevailing misconceptions. The study highlights the importance of increasing awareness and understanding of Takaful to encourage greater participation in this form of insurance. In addition, future research could examine the reasons for limited engagement with Takaful and explore strategies to promote insurance literacy and active participation in the industry.
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How to Cite
Mohamed Minaz, M. N., Mohamed Mazahir, S. M., Fathima Nihla, A. M. F., & Fathima Masliha, K. L. (2023). Awareness of the Differences Between Islamic Insurance and Conventional Insurance amongst Students of Islamic Studies in Sri Lanka. Invest Journal of Sharia & Economic Law, 3(1), 84-104. https://doi.org/10.21154/invest.v3i1.5794
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References
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Abu-Hussin, Mohd Fauzi, Nasrul Hisyam Nor Muhamad, and Mohd Yahya Mohd Hussin. ‘Takaful (Islamic Insurance) Industry in Malaysia and the Arab Gulf States: Challenges and Future Direction’. Asian Social Science 10, no. 21 (30 September 2014): 26–34. https://doi.org/10.5539/ass.v10n21p26.
Akhter, Waheed, and Tajammal Hussain. ‘Takāful Standards and Customer Perceptions Affecting Takāful Practices in Pakistan: A Survey’. International Journal of Islamic and Middle Eastern Finance and Management 5, no. 3 (24 August 2012): 229–40. https://doi.org/10.1108/17538391211255214.
Ali, M I Umar, M Y Minnathul Suheera, and M Y Munawwara. The Moderate Approach to Human Development through Islamic Sciences and Arabic Studies Knowledge and Practice of Hospital Waste Management among Health Care Workers: A Sociological Study on Nintavur Base Hospital. 7th International Symposium 2020, FIA, SEUSL, 2020.
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Hemed, Hafidh Abdulla, Arwa Abubaker Abdullah Alamoudi, Anas Abdulkadir Abubakar Al Qassim, and Bandar Mohammed Saif Qasem. ‘The Potential Use of FinTech Developments in Takaful’. International Journal of Management and Applied Research 8, no. 2 (3 June 2021): 109–21. https://doi.org/10.18646/2056.82.21-007.
Jahan, Seinulabdeen Nathira, Mohamed Haniffa Mohamed Nairoos, and Mohamed Shafeek Fathima Sulaiha. ‘Participants ‟ Knowledge and Awareness about Islamic Insurance : A Study on Sammanthurai in Sri Lanka’. International Journal of Research and Innovation in Social Science (IJRISS) IV, no. Vii (1 July 2020): 490–95.
Mohamed Mazahir, Seyed Mohamed, Asmak Ab Rahman, and Mohammad Ismath Ramzy. ‘An Analysis On Takaful Operation Under Conventional Regulator: A Sri Lankan Experience’. Journal of KATHA 13, no. 1 (2017): 54–72. https://doi.org/10.22452/katha.vol13no1.3.
Mohd Fauzi, Puteri Nur Farah Naadia, and Khairuddin Abdul Rashid. ‘Transparency in the Assessment of Takaful Claims for Construction Works Loss and Damage’. Global Journal Al-Thaqafah. Kolej Islam Darul Ridzuan, 2016. https://doi.org/10.7187/gjat10020160601.
Patel, Geeta H. ‘Islam and Capital, Mortared by Trust: The Case of Sri Lanka’. Society and Business Review 12, no. 3 (2017): 373–94. https://doi.org/10.1108/sbr-07-2017-0045.
Puspita, Dila, Adam Kolkiewicz, and Ken Seng Tan. ‘Discrete Time Ruin Probability for Takaful (Islamic Insurance) with Investment and Qard-Hasan (Benevolent Loan) Activities’. Journal of Risk and Financial Management 13, no. 9 (15 September 2020): 211. https://doi.org/10.3390/jrfm13090211.
Rizniya, J F, and M S A Rooly. ‘Challenges Faced by Islamic Insurance Industry in Sri Lanka: Special Referance to Amana Takaful PLC’, 2014.
Roshan, A M F, H M A Hilmy, S M M Mazahir, A C Mohamed Nafrees, and K F Risama. ‘Comparative Study between Islamic Insurance and Conventional Insurance in Sri Lanka’. Faculty of Islamic Studies and Arabic Language, 2022.
Salman, Syed Ahmed. ‘Contemporary Issues in Takaful (Islamic Insurance)’. Asian Social Science 10, no. 22 (29 October 2014): 201–16. https://doi.org/10.5539/ass.v10n22p210.
Salman, Syed Ahmed, Rusni Hassan, and Adnan Yusoff. ‘Feasibility of Introducing Takaful (Islamic Insurance) in India from the Perspective of Islamic Finance Experts’. Indian Journal of Public Health Research and Development 9, no. 12 (2018): 2656–61. https://doi.org/10.5958/0976-5506.2018.02117.4.
Abd Aziz, Nur Azlina, Nor Faradilah Mahad, Jamilah Mohd Mahyideen, and Eley Suzana Kasim. ‘Incorporating Expert Judgement into Life Insurance and Life Takaful Companies’ Efficiency Measurement Through DEA-AR/FAHP Approach’. International Journal of Academic Research in Business and Social Sciences 11, no. 11 (4 November 2021). https://doi.org/10.6007/ijarbss/v11-i11/11250.
Abdeen, Mohammad, Salman Jan, Sohail Khan, and Toqeer Ali. ‘Employing Takaful Islamic Banking through State of the Art Blockchain: A Case Study’. International Journal of Advanced Computer Science and Applications 10, no. 12 (January 2019): 648–54. https://doi.org/10.14569/ijacsa.2019.0101283.
Abu-Hussin, Mohd Fauzi, Nasrul Hisyam Nor Muhamad, and Mohd Yahya Mohd Hussin. ‘Takaful (Islamic Insurance) Industry in Malaysia and the Arab Gulf States: Challenges and Future Direction’. Asian Social Science 10, no. 21 (30 September 2014): 26–34. https://doi.org/10.5539/ass.v10n21p26.
Akhter, Waheed, and Tajammal Hussain. ‘Takāful Standards and Customer Perceptions Affecting Takāful Practices in Pakistan: A Survey’. International Journal of Islamic and Middle Eastern Finance and Management 5, no. 3 (24 August 2012): 229–40. https://doi.org/10.1108/17538391211255214.
Ali, M I Umar, M Y Minnathul Suheera, and M Y Munawwara. The Moderate Approach to Human Development through Islamic Sciences and Arabic Studies Knowledge and Practice of Hospital Waste Management among Health Care Workers: A Sociological Study on Nintavur Base Hospital. 7th International Symposium 2020, FIA, SEUSL, 2020.
Che Rusuli, M. S., R. Ruwaida, M. Noraani, J. Takala, and M. Nizamuddin. ‘Influence of Marketing Mix Strategy in Insurance Business: The Case of Kota Bharu’. Research in World Economy 10, no. 2 Special Issue (July 2019): 88–95. https://doi.org/10.5430/rwe.v10n2p88.
Ghazali, Nur Fazlin. ‘The Awareness among Degree Student at UiTM Puncak Alam toward Takaful V Conventional Insurance’. In Academy of Contemporary Islamic Studies (ACIS) 2017. Academy of Contemporary Islamic Studies (ACIS), 2017.
Hemed, Hafidh Abdulla, Arwa Abubaker Abdullah Alamoudi, Anas Abdulkadir Abubakar Al Qassim, and Bandar Mohammed Saif Qasem. ‘The Potential Use of FinTech Developments in Takaful’. International Journal of Management and Applied Research 8, no. 2 (3 June 2021): 109–21. https://doi.org/10.18646/2056.82.21-007.
Jahan, Seinulabdeen Nathira, Mohamed Haniffa Mohamed Nairoos, and Mohamed Shafeek Fathima Sulaiha. ‘Participants ‟ Knowledge and Awareness about Islamic Insurance : A Study on Sammanthurai in Sri Lanka’. International Journal of Research and Innovation in Social Science (IJRISS) IV, no. Vii (1 July 2020): 490–95.
Mohamed Mazahir, Seyed Mohamed, Asmak Ab Rahman, and Mohammad Ismath Ramzy. ‘An Analysis On Takaful Operation Under Conventional Regulator: A Sri Lankan Experience’. Journal of KATHA 13, no. 1 (2017): 54–72. https://doi.org/10.22452/katha.vol13no1.3.
Mohd Fauzi, Puteri Nur Farah Naadia, and Khairuddin Abdul Rashid. ‘Transparency in the Assessment of Takaful Claims for Construction Works Loss and Damage’. Global Journal Al-Thaqafah. Kolej Islam Darul Ridzuan, 2016. https://doi.org/10.7187/gjat10020160601.
Patel, Geeta H. ‘Islam and Capital, Mortared by Trust: The Case of Sri Lanka’. Society and Business Review 12, no. 3 (2017): 373–94. https://doi.org/10.1108/sbr-07-2017-0045.
Puspita, Dila, Adam Kolkiewicz, and Ken Seng Tan. ‘Discrete Time Ruin Probability for Takaful (Islamic Insurance) with Investment and Qard-Hasan (Benevolent Loan) Activities’. Journal of Risk and Financial Management 13, no. 9 (15 September 2020): 211. https://doi.org/10.3390/jrfm13090211.
Rizniya, J F, and M S A Rooly. ‘Challenges Faced by Islamic Insurance Industry in Sri Lanka: Special Referance to Amana Takaful PLC’, 2014.
Roshan, A M F, H M A Hilmy, S M M Mazahir, A C Mohamed Nafrees, and K F Risama. ‘Comparative Study between Islamic Insurance and Conventional Insurance in Sri Lanka’. Faculty of Islamic Studies and Arabic Language, 2022.
Salman, Syed Ahmed. ‘Contemporary Issues in Takaful (Islamic Insurance)’. Asian Social Science 10, no. 22 (29 October 2014): 201–16. https://doi.org/10.5539/ass.v10n22p210.
Salman, Syed Ahmed, Rusni Hassan, and Adnan Yusoff. ‘Feasibility of Introducing Takaful (Islamic Insurance) in India from the Perspective of Islamic Finance Experts’. Indian Journal of Public Health Research and Development 9, no. 12 (2018): 2656–61. https://doi.org/10.5958/0976-5506.2018.02117.4.