The needs for microtakaful scheme among lower income earners : a case study at Penang, Malaysia / Ahmad Hazim Mohd Azman

Microtakaful, or Takaful that is specific by low commitments of low scope cutoff points, is a critical component in the monetary change of a rising nation (Mokhtar, Sulaiman, and Ismail, 2012). They additionally included that Microtakaful has been delegated a powerful instrument in managing insurable danger for low-wage family unit and smaller scale business people when unexpected episodes happen to them. Microtakaful in Malaysia is still in early stage compared to Indonesia, India, Bangladesh, China and other Asian countries (Mughal, 2010). This is because Takaful Operators are currently focusing on Takaful products that are affordable only to middle-to-high income groups. Nowadays, the cost of living is higher due to the uncertain economic situation, including the implementation of GST. It will cause the low-income groups is not able to get financial protection in the event of an accident or loss in the future. This research had focused on the determinants that influence the needs of Microtakaful scheme among lower income earners. The main objective of this research is to identify the relationship between understanding of Takaful, risk exposure, and capacity to contribute with the 119eds for Microtakaful scheme among lower income earners. This research used the primary data, which sums of 150 questionnaires that have been distributed to the lower income earners in Penang, Malaysia. The data that has been collected were analysed using Statistical Package for Sosial Science (SPSS). From the result, it was noted that all independent variables showed significant relationship towards the dependent variable. It was noted that the lower income earners were in need for Microtakaful.