Proposal Title:

THE ACCEPTANCE OF TAKAFUL AMONG THE LECTURES IN UiTM

TERENGGANU CAMPUS DUNGUN

Prepared for:
DR. SALIMAH YAHAYA

Prepared by:
MUHAMMAD HAZIQAIMAN BIN AHMAD TABARANI
 TABLE OF CONTENTS

CHAPTER 1

1.0 INTRODUCTION

1.1 Background of Research

1.2 Problem Statement

1.3 Research Questions

1.4 Research Objectives

1.5 Significance of Study

CHAPTER 2

2.0 LITERATURE REVIEW

CHAPTER 3

3.0 RESEARCH METHODOLGY

3.1 Study Area

3.2 Sampling

REFERENCES
1.0 INTRODUCTION

In the customary monetary framework, protection alludes to a budgetary assurance

framework that fills in as a danger the executive technique or instrument to lessen the danger
of vulnerability. Protection likewise gives arranged financing strategies in lessening
misfortunes. Then, the takaful framework (Islamic protection) is known as the idea of
common help (ta'awun) and gift (tabarru '), where the danger is shared by and large and
willfully by a gathering of members to guarantee security with individuals. (Dusuki, 2011;
Redzuan et al., 2009). As indicated by Ahmad Musadik, 2010 and Yusof, 2009, the term
takaful originates from the Arabic word "kafala", which signifies 'shared assurance' or
'promising one another'. This idea additionally clarifies the obligations of gathering
individuals as a gathering of people who promise each other against the possible misfortune
or harm looked by anybody from their gathering.

As per Billah (2003), the idea of takaful depends on collaboration where the members
included give budgetary insurance to one another. AAOIFI characterizes Islamic protection
as an understanding between people presented to hazard to secure themselves against
misfortune brought about by hazard by paying commitments dependent on "pledge to give".

The main takaful organization in Malaysia was built up a year after the foundation of the
primary Islamic Bank in 1983 and was named Syarikat Takaful Malaysia Berhad (STMB).
Fundamentally, takaful offers two sorts of items, specifically broad takaful and family
takaful. Among the significant highlights of general takaful is transient takaful, commitments
paid by members will be credited into the overall takaful reserve, tabarru 'as a center
component, and no investment funds component and can be classified into engine takaful and
non-engine takaful. While for family takaful is long haul and ordinarily, members likewise
expect to put something aside for their drawn out requirements. For instance, youngsters'
training, annuities, and pay for qualified beneficiaries in case of death and inability. There are
two subsidizes isolated into family takaful, in particular reserve funds finance (member
record) and speculation finance (member unique record).
1.1 Background of Research

Takaful is gotten from its Arabic root word kafala which truly signifies "to ensure". As far as
use and suggestion, the term kafala surely signifies the understanding by one gathering to
reimburse another for any risk that has been pre-settled upon. Since Islamic banking is
formed into a framework that conveys the rule of Shari'ah, which precludes the installment or
acknowledgment of intrigue expenses for loaning and tolerating of cash separately. Also,
Islam denied any sort of interest in business that include intrigue (riba), or then again
merchandise and enterprises that thought about in opposition to Islamic standards.
(International Journal of Humanities and Social Science Invention, 2016).

This is the example of product that provided by takaful, which is “takaful am” and “takaful
keluarga”. General takaful is usually a short term takaful contract. It covers the prospects of
the motor and non-motor (non-motor) business which covers property and hardware or is
known as insurable property. Starting with the smallest insurable value up to large buildings
such as KLCC tower, Kuala Lumpur tower and so on. Similarly, if a person wants to ride in a
vehicle, then the vehicle must be insured first. A person will incur a loss if the vehicle, goods
or even the property owned or destroyed by fire due to human or other negligence. (ISRA,
2011).

Family Takaful is a Takaful plan that gives long haul security and investment funds to
members. A Family Takaful Plan member consents to contribute or contribute a whole of
cash to the Takaful reserve. Some portion of the commitment will be apportioned to the
reserve (Participant Risk Fund) as tabarru '(gift) and the other part for investment funds and
speculations (Participant Investment Fund).

1.2 Problem Statement

Until this point, there is no rejecting that there is an expansion sought after in the takaful
business market yet many despite everything don't have takaful inclusion (Rahman et al.,
2008). An investigation directed by Daljit (2011) additionally inferred that in spite of the fact
that the takaful market has been built up for over 25 years, there are numerous Malaysians
who don't have takaful inclusion. As per an announcement given by the Chief Executive
Officer of Takaful Malaysia Group, Datuk Seri Mohamed Hassan Kamil (2015), he clarified
that the takaful market has developed quickly lately. Insights likewise show that around 45
percent of Malaysians have one protection item yet is baffling that under 15 percent of
Malaysians have takaful items. Along these lines this data demonstrates that the Malaysian
takaful industry is as yet along ways behind when thought about regarding entrance of the
whole protection market and ordinary stocks.