Analyzing the selection of takaful or insurance: a case study at Hulu Terengganu District Council (MDHT), Terengganu / Ainul Fatinah Dayini Mohd Sabri

Takaful and insurance are one of the savings to protect against any dangers or risks that exist around. This study aims to analyze the factors that influence the choice between Takaful and insurance among officers and employees in the Hulu Terengganu District Council (MDHT). In this context, this study examines the factors of awareness, knowledge, and socioeconomics that play a role in the selection of financial protection products among individuals. Data were collected through a questionnaire distributed to 100 respondents consisting of MDHT staff. The results of the study showed that most respondents were more likely to choose Takaful than conventional insurance, because of the belief factor in the principles of Takaful which are in accordance with Islamic teachings. However, there are also those who still do not understand the differences between these two products, which affects their decision to choose. This study suggests several approaches to increase understanding and awareness of Takaful and insurance, including through more effective education and information campaign programs. In addition, this study provides recommendations to MDHT to study these factors in planning financial protection benefits for their employees in the future.