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Cooperative Takaful Model: A New Game Changer [Modelo Cooperativo Takaful: Un Nuevo Cambio de Juego]

Though nowadays the Malaysian takaful industry is experiencing an average of two digit growth every year, it has been seen to be too commercialised and the mutually spirit which is treated as core concept of takaful has seen disappeared. On the other hand, takaful faces many critics for imposing ter...

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Main Authors: Mohamed Naim, Asmadi, Isa, Mohamad Yazid, Abdul Rahim, Ahmad Khilmy
Format: Article
Language:English
Published: SEK Education Group 2024
Subjects:
HG Finance
Online Access:https://repo.uum.edu.my/id/eprint/31311/1/UBSR%2021%2080%202024%20608-631.pdf
https://repo.uum.edu.my/id/eprint/31311/
https://journals.ucjc.edu/ubr/article/view/4579
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spelling my.uum.repo.313112024-08-29T10:18:15Z https://repo.uum.edu.my/id/eprint/31311/ Cooperative Takaful Model: A New Game Changer [Modelo Cooperativo Takaful: Un Nuevo Cambio de Juego] Mohamed Naim, Asmadi Isa, Mohamad Yazid Abdul Rahim, Ahmad Khilmy HG Finance Though nowadays the Malaysian takaful industry is experiencing an average of two digit growth every year, it has been seen to be too commercialised and the mutually spirit which is treated as core concept of takaful has seen disappeared. On the other hand, takaful faces many critics for imposing terms and conditions that benefited takaful operators and not sufficient to cover the needs of the participants. Therefore, the study aims to analyse an alternative model to takaful industry in Malaysia using cooperative takaful model by analysing the mutuality and cooperative concepts and discussing few controversial issues related to existing takaful models. The study applies qualitative research method using documents analysis, focus group discussions and interviews. The findings propose the cooperative takaful model as an alternative to current models. The advantages of cooperative takaful model are the ability to uphold cooperative and mutuality concept and to reduce overdependence on the commercial based takaful. Besides, it offers several benefits to participants compared to the existing takaful models. By participating in cooperative takaful, the participant also became the owner of takaful company where some of monthly takaful contribution will be utilise for acquiring company’s share. However, there are some limitations of this model such as high paid up capital to set up the business, the existing legal system does not suit for cooperative takaful model, create dormant member issue, the issue of conflict of interest between management and participant as well as takaful operator concerns on the application of this new takaful model due to small market penetration SEK Education Group 2024 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/31311/1/UBSR%2021%2080%202024%20608-631.pdf Mohamed Naim, Asmadi and Isa, Mohamad Yazid and Abdul Rahim, Ahmad Khilmy (2024) Cooperative Takaful Model: A New Game Changer [Modelo Cooperativo Takaful: Un Nuevo Cambio de Juego]. UCJC Business and Society Review, 21 (80). pp. 608-657. ISSN 2659-3270 https://journals.ucjc.edu/ubr/article/view/4579 DOI: 10.3232/UBR.2024.V21.N1.14 DOI: 10.3232/UBR.2024.V21.N1.14
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Mohamed Naim, Asmadi
Isa, Mohamad Yazid
Abdul Rahim, Ahmad Khilmy
Cooperative Takaful Model: A New Game Changer [Modelo Cooperativo Takaful: Un Nuevo Cambio de Juego]
description Though nowadays the Malaysian takaful industry is experiencing an average of two digit growth every year, it has been seen to be too commercialised and the mutually spirit which is treated as core concept of takaful has seen disappeared. On the other hand, takaful faces many critics for imposing terms and conditions that benefited takaful operators and not sufficient to cover the needs of the participants. Therefore, the study aims to analyse an alternative model to takaful industry in Malaysia using cooperative takaful model by analysing the mutuality and cooperative concepts and discussing few controversial issues related to existing takaful models. The study applies qualitative research method using documents analysis, focus group discussions and interviews. The findings propose the cooperative takaful model as an alternative to current models. The advantages of cooperative takaful model are the ability to uphold cooperative and mutuality concept and to reduce overdependence on the commercial based takaful. Besides, it offers several benefits to participants compared to the existing takaful models. By participating in cooperative takaful, the participant also became the owner of takaful company where some of monthly takaful contribution will be utilise for acquiring company’s share. However, there are some limitations of this model such as high paid up capital to set up the business, the existing legal system does not suit for cooperative takaful model, create dormant member issue, the issue of conflict of interest between management and participant as well as takaful operator concerns on the application of this new takaful model due to small market penetration
format Article
author Mohamed Naim, Asmadi
Isa, Mohamad Yazid
Abdul Rahim, Ahmad Khilmy
author_facet Mohamed Naim, Asmadi
Isa, Mohamad Yazid
Abdul Rahim, Ahmad Khilmy
author_sort Mohamed Naim, Asmadi
title Cooperative Takaful Model: A New Game Changer [Modelo Cooperativo Takaful: Un Nuevo Cambio de Juego]
title_short Cooperative Takaful Model: A New Game Changer [Modelo Cooperativo Takaful: Un Nuevo Cambio de Juego]
title_full Cooperative Takaful Model: A New Game Changer [Modelo Cooperativo Takaful: Un Nuevo Cambio de Juego]
title_fullStr Cooperative Takaful Model: A New Game Changer [Modelo Cooperativo Takaful: Un Nuevo Cambio de Juego]
title_full_unstemmed Cooperative Takaful Model: A New Game Changer [Modelo Cooperativo Takaful: Un Nuevo Cambio de Juego]
title_sort cooperative takaful model: a new game changer [modelo cooperativo takaful: un nuevo cambio de juego]
publisher SEK Education Group
publishDate 2024
url https://repo.uum.edu.my/id/eprint/31311/1/UBSR%2021%2080%202024%20608-631.pdf
https://repo.uum.edu.my/id/eprint/31311/
https://journals.ucjc.edu/ubr/article/view/4579
_version_ 1809150992833314816
score 13.211869

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