Determinant to Islamic Insurance

Only available on StudyMode
  • Download(s) : 125
  • Published : March 25, 2013
Open Document
Text Preview
A STUDY ON
THE DETERMINANT FOR FAMILY TAKAFUL CONSUMPTION

NURUL NADIA BINTI HARUN
2009804722

BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE
FACULTY OF BUSINESS MANAGEMENT
MARA UNIVERSITY OF TECHNOLOGY
KELANTAN

PROPOSAL

DECLARATION OF ORIGINAL WORK

BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE
FACULTY OF BUSINESS MANAGEMENT
UNIVERSITI TEKNOLOGI MARA KELANTANG
KAMPUS KOTA BHARU

I, NURUL NADIA BINTI HARUN, (I/C NUMBER: 880920-03-5432)

Hereby declares that:
* This work has not previously been accepted in substance for any degree, locally or overseas, and is not being concurrently submitted for this degree or any other degrees.

* This project paper is the result of my independent work and investigation except where it is otherwise stated.

* All verbatim extract have been distinguish by quotation marks and source of my information have been specifically acknowledgement.

Signature: ____________________ Date: _________________

LETTER OF TRANSMITTAL

Bachelor in Business Administration (Hons) Finance
Universiti Teknologi Mara (UiTM) Kampus kota bharu,
Kota Bharu,, Kelantan. April 2011

Associate Prof. Safri Bin Ya
The Head of Programme,
Bachelor of Business Administration (Hons) Finance,
Faculty of Business Management
University Teknologi MARA UiTM;
Kota Bharu, Kelantan.

Dear Sir,
SUBMISSION OF PROJECT PAPER
Attached is the project paper titled ‘A study on the determinant for Family Takaful consumption.’ To fulfill the requirement needed by the Faculty of Business Management, Universiti Teknologi MARA Your kindness in accepting the unbounded thesis is very much appreciated. Thank you.

Yours sincerely,
…………………………………………….
NURUL NADIA BINTI HARUN
2009804722
Bachelor of Business Administration (Hons) Finance

ABSTRACT
This study attempts to determine the determinants for Family Takaful consumption, whether population, interest rate and GDP related to the demand for Family Takaful. This study uses 10 data that is collected from annual report of Etiqa Takaful 1997 to 2006. The data collected was then tested on the multiple regression analysis and then were use to test the hypothesis in this study.

CHAPTER 1: INTRODUCTION

1.1 Background of study
The development of Takaful industry
The development of the Takaful industry in Malaysia in the early 1980s was inspired by the prevailing needs of the Muslim public for a Shariah-compliant alternative to conventional insurance, as well as to complement the operation of the Islamic bank that was established in 1983. It was, to a large extent, triggered by the decree issued by the Malaysian National Fatwa Committee which ruled that life insurance in its present form is a void contract due to the presence of the elements of Gharar (uncertainty), Riba’ (usury) and Maisir (gambling). A Special Task Force was established by the Government in 1982 to study the viability of the setting up of an Islamic insurance company following the recommendations of the Task Force, the Takaful Act was enacted in 1984 and the first Takaful operator was incorporated in Malaysia in November 1984. The Takaful industry in Malaysia has consistently registered strong growth in the last 20 years. It has proven to be resilient in the face of intense competition from the more advanced insurance industry. The industry has recorded average annual growth rates of 57.9% and 44% in assets and net contributions respectively since 1986.

Overview of Takaful
Takaful is a system of Islamic insurance based on the principle of mutual cooperation (ta’awun) and donation (tabarru’), where the risk is shared collectively and voluntarily by the group of participants. It is derived from an Arabic word meaning ‘joint guarantee’ or ‘guaranteeing each other’ (Mahmood, 2008). It is an arrangement by a group of people with common interests to guarantee or...
tracking img