Analyzing the Principles of Taawun in Contributing to Socio Economic Objectives by Malaysian Takaful Operator

Abstract

Ta’awun is one of the underlying principles for Takaful. This concept of ta’awun means helping each other so as not to act immoral and violate the commands of religion, and the command of God. Ta’awun plays an important role in differentiating the operations Malaysian takaful businesses with conventional counterpart. However, previous study indicated that awareness of consumers on the Takaful concept is still low and resulted to less than 50% of Malaysians as a whole have access to takaful. The main purpose of this study is to analyse the implementation of ta’awun Malaysian Takaful Operators in contribution to socio-economic objectives. In order to achieve the objective of the study, ten respondents from eight Takaful Operators were interviewed via semi-structured interview. The objectives of the study are in line with the Value based Intermediaries Takaful (VBIT) framework, which was created to provide inclusive protection for disadvantaged or underserved societal sectors and to solve key socioeconomic challenges. Main finding will highlight on the contributions of Malaysian Takaful Operators to the socio-economic objective based on ta’awun concept.