The Muamalat Newsletter Vol. 2 2024

FEM eNewsletter | December 2024 52 MotorTakafulandWillingnesstoParticipate: An Overview Motor takaful is a scheme for motor cases, private motorcycles, commercial vehicles, and special types of vehicles. A private motor takaful plan provides coverage in the event of losses or damages caused by accident, fire, or theft, and liability to a third party. Most takaful companies provide three scopes of coverage under their private motor takaful certificates. They are (1) own damage, (2) legal liability to third parties, and (3) accidents to participants (Asuhaimi & Sofian, 2023; Alhabshi et al., 2012). Customers’ willingness to choose motor takaful was determined by affect, religious obligation, awareness, perceived risk, and social factors. Multiple studieshaveexamined the correlation between awareness and clients’ desire to accept Islamic insurance services, leading to different findings (Md Husin & Ab Rahman, 2016; Abdelghani et al., 2014; Ayinde & Echchabi, 2012). According to Md Husin and Ab Rahman (2016), there was no substantial impact of awareness on participation in Islamic insurance. Robinson (2010) stated that effect is a sensation that arises when someone is thinking about doing something. Additionally. previous research on Islamic finance (e.g., Maduku & Mbeya, 2023; Ali et al. 2019; Maryan et al. 2019; Selvanathan et al. 2018) has emphasized how Muslims’ attitudes towards Islamic financial products are influenced by their religious obligations. Muslims who adhere to the teachings of the Quran are required to think about takaful rather than conventional insurance plans since takaful is a financial product based on solid Quranic principles. The concept also contends that religious obligation influences affect, social factors, awareness, and perceived risk. In addition, Ramayah et al. (2009) find that social factors have a major impact on taxpayers’ intentions to file taxes online and expand the use of the social component to the Malaysian tax filing. Thus, understanding the social aspect as one of the potential factors of willingness to choose takaful is also warranted. Methodology Using a quantitative approach, data were collected through questionnaires. Standardized measurement scales for the study’s constructs were adopted from Mehboob & Amin (2024) and Razak et al. (2013). The data was gathered from bachelor’s students, Faculty of Economics and Muamalat, USIM. This study aims to identify potential factors impacting their willingness to participate in motor takaful. They probably show better awareness and comprehension of takaful since they have been exposed to takaful-related courses. The sample is calculated based on Krejcie & Morgan (1970). Using random sampling, 340 responses from a total of 2100 students were collected and analyzed using descriptive analysis. Findings 1. Demographic Profile The data from 340 respondents was examined. Table 1 presents the demographic profiles of the respondents. The questionnaires were completed by 167 male respondents and 173 female respondents. 60 respondents are between 18 and 20, and the remaining 280 are aged 21 and 30. As for educational background to enroll Bachelor’s degree in FEM, 201 respondents were from Tamhidi, 79 respondents were STAM’s students, 41 respondents were STPM’s students, and 19 respondents were Diploma students. Furthermore, there were 117 Year 2 respondents, which is the highest number of respondents, followed by 160 respondents from Year 3, 39 from Year 3, and 24 from Year 4.