Does Nigerian Low-Income Families Need For Micro Family Takaful Scheme?

Authors

  • MURTALA MUHAMMAD SHA’ABAN
  • FAUZILAH SALLEH

Keywords:

Microtakaful, low-income family

Abstract

 Insurance, beyond doubt, is an essential policy for poverty eradication. Since low income households can't afford the high insurance premium, the best protection is Microinsurance or Microtakaful. In terms of principle, Microtakaful is barely the same as Takaful, except that the former is based on mutual contribution with affordable price that overcomes a specific risk that plagues the low income households. Having that said, this study proposes Microtakaful as an essential mechanism that protects the low-income group, apart from reducing the poverty rate. The proposed Microtakaful framework consists of a protection scheme equipped with financial support grants from the government, non-governmental organisations (NGOs), charity institutions, waqaf, international charity organisations, and donor agencies. This offers a basis to further look into the Microtakaful product and mutual pricing model designs based on cooperative principles as a mobilisation fund aimed at eradicating poverty amidst low-income families.

Downloads

Download data is not yet available.

References

Ajide, F. M., & Abiahu, M. C. (2019). 5th Annual International Academic Conference Proceedings ( 2019 ) FULL (Issue August).

Akhtar, M. H. (2018). Performance analysis of Takaful and conventional insurance companies in Saudi Arabia. Benchmarking, 25(2). https://doi.org/10.1108/BIJ-01-2017-0018

Alhassan, A. L., & Biekpe, N. (2016). Determinants of life insurance consumption in Africa. Research in International Business and Finance, 37. https://doi.org/10.1016/j.ribaf.2015.10.016

Alshammari, A. A., Syed Jaafar Alhabshi, S. M., & Saiti, B. (2018). A comparative study of the historical and current development of the GCC insurance and takaful industry. Journal of Islamic Marketing, 9(2). https://doi.org/10.1108/JIMA-05-2016-0041

Ardo, A. A., & Saiti, B. (2017). Takaful practice in Nigeria: history, present and future. European Journal of Islamic Finance, 8, 1–10. https://doi.org/10.13135/2421-2172/2086

Bakar, M. A., & Aman, D. (2018). A Comparative Review of Takaful Frameworks in Nigeria, Malaysia. 3(1), 56–69.

Burhan, N.A.S., Che Razak, R., Salleh, F., Labastida Tovar, M.E. (2017). The higher intelligence of the 'creative minority' provides the infrastructure for entrepreneurial innovation. Intelligence, 65, pp. 93-106.

Churchill, C. (2019). What is insurance for the low income? In Protecting the Low income: A Microinsurance Compendium (pp. 11–24). https://doi.org/10.5848/ilo.978-9-221192-54-1_3

Daud, W.N.W., Zainol, F.A., Salleh, F., Yazid, A.S., Ismail, S., Markom, R., Mukhtar, N.D. (2017). Takaful rules and regulations for ASEAN countries: Takaful player perspectives. Proceedings of the 30th International Business Information Management Association Conference, IBIMA 2017 - Vision 2020: Sustainable Economic development, Innovation Management, and Global Growth, 2017-January, pp. 2363- 2369

Foziah, N.H.M., Ghazali, P.L., Mamat, M., Salleh, F., Guci, D.A., Jaaffar, S.A.S., Afthanorhan, A., Omar, L., Yazid, A.S. (2018). Analysis of private sector retiree's decision towards EPF retirement benefit of annuity-based option. International Journal of Engineering and Technology (UAE), 7 (3.28 Special Issue 28), pp. 185-188.

Htay, S. N. N., Sadzali, N. S., & Amin, H. (2015). An analysis of the viability of micro health takaful in Malaysia. Qualitative Research in Financial Markets, 7(1). https://doi.org/10.1108/QRFM-09-2013-0030

Kazaure, M. A. (2019). Extending the theory of planned behavior to explain the role of awareness in accepting Islamic health insurance (Takaful) by microenterprises in northwestern Nigeria. Journal of Islamic Accounting and Business Research, 10(4). https://doi.org/10.1108/JIABR-08-2017-0113

Masood, P. O., Javaria, K., & Shah, S. A. A. (2018). Consumption of Family Takaful Affected by Microeconomic Factors : A Case Study of Islamic insurance Takaful in Pakistan. European Journal of Islamic Finance, 9(April), 1–7.

Paper, D. (2016). Microinsurance and Microtakaful. April.

Paton Schmidt, A. (2019). The impact of cognitive style, consumer demographics and cultural values on the acceptance of Islamic insurance products among American consumers. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-02-2018-0033

Saeed, M. (2019). Effect of Takaful Models on Performance of Takaful Operators. Empirical Economic Review, 2(2), 53–80. https://doi.org/10.29145/eer/22/020104

Salleh. F., Mustafa, N., Yazid, A.S., Ghazali, P.L., Wan Daud, W.N., Remli, N., & Burhan, Nas., (2017). A review of the importance of the need for micro medical and health Takaful. 30th International Business Information Management Association Conference - Vision 2020: Sustainable Economic development, Innovation Management, and Global Growth, IBIMA 2017

Salleh, F. & Ahmad Saufi, N.F., (2020). Is the Introduction of National Plan of Coastal Erosion Takaful Scheme Necessary? Journal of Advanced Research in Dynamical & Control Systems, Vol. 12, No. 5: 47-53. Scopus.

Woolfrey, S., Apiko, P., & Pharatlhatlhe, K. (2019). Nigeria and South Africa : Shaping Prospects for the African Continental Free Trade Area. 242.

Yazid, A.S., Arifin, A., Salleh, F., Ghazali, P.L., & Mahmud, M.S (2020). Determinants of Family Takaful Loyalty in Malaysia: An Exploratory Factor Analysis. Journal of Advanced Research in Dynamical and Control Systems. Volume 12 (4): 291-298. DOI: 10.5373/JARDCS/V12I4/20201443

Yusuf, T. O., & Babalola, A. R. (2015). Takaful in Nigeria: Penetration Challenges and Way Forward. Journal of Islamic Economics, Banking & Finance, 11(2). https://doi.org/10.1017/CBO9781107415324.004

Downloads

Published

2021-04-30

How to Cite

SHA’ABAN, M. M. ., & SALLEH, F. . (2021). Does Nigerian Low-Income Families Need For Micro Family Takaful Scheme?. The Journal of Contemporary Issues in Business and Government, 27(2), 52–58. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/901

Issue

Vol. 27 No. 2 (2021): The journal of contemporary issues in business and government

Section

Articles

License

You are free to:

  1. Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
  2. Adapt — remix, transform, and build upon the material for any purpose, even commercially.
  3. The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

  1. Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
  2. No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.

Notices:

You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .

No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.