Factors influencing the purchase of takaful among the staff of Pejabat Agama Jajahan Machang

The religious offices in Malaysia, sometimes called the Department of Islamic Religion at the state level or JAKIM at the federal level, hold great importance for the observation of several aspects of the life of the Muslim community. The relationship to takaful is such that religious officials can be involved in educating the public about takaful as an alternative to conventional insurance, which contains elements not allowed in Islam. Islamic insurance or Takaful is an insurance product based on Shariah compliance. Although many people have shown great interest in Islamic financial products, Takaful also has to grapple with challenges that are impeding widespread consumer adoption. This study seeks to explore some factors likely to affect the purchasing of Takaful among the staff of Pejabat Agama Jajahan Machang. Quantitative surveys will be carried out through a questionnaire containing 33 questions distributed to respondents via social media, such as WhatsApp. In total, 28 respondents who are the staff of Pejabat Agama Jajahan Machang have answered the question. Besides, the collected data was analyzed using IBM SPSS Statistics software version 27 to find out the level of awareness of the staff towards takaful and factors influencing their decision to purchase takaful. As a result, majority of the staff aware that Takaful is not involved in the elements of riba' (usury), maysir (gambling) and gharar (uncertainty). The results also showed that financial resources, religious adhering, and awareness level were the variables influencing the purchase of takaful among Pejabat Agama Jajahan Machang staff. Thus, this research could identify the causes that influence the purchasing of takaful among the staff. These findings will drive Takaful providers and policymakers in designing programs according to the needs and preference of this demographic, thus increasing further penetration of Takaful products.