The understanding of the concept of tabarru' among takaful participants in Sungai Petani, Kedah

Abstract

Takaful is an industry that provides financial protection to the community based on Shariah principles, especially through the implementation of the concept of tabarru' as the basis for a mutual assistance system among participants. However, the level of understanding of the participants on the concept of tabarru' is still an important issue as a lack of understanding can lead to misunderstandings of the takaful system. Therefore, this study aims to assess the level of understanding of the concept of tabarru' among takaful participants in Sungai Petani, Kedah. This study used a quantitative approach through the distribution of online questionnaires using Google Form to 108 randomly selected respondents. The data collected was analysed using the Statistical Package for the Social Sciences (SPSS) to identify the level of respondents' understanding of the concept of tabarru' and the factors that influence it. The findings of the study show that the majority of takaful participants have a good level of understanding of the concept of tabarru'. However, there are still a few respondents who are not clear about the concept, thus showing the need for more effective information and education efforts. This study makes an important contribution to takaful operators and stakeholders in formulating more effective marketing and information delivery strategies to increase public awareness and understanding of the takaful system.