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UNIVERSITI TEKNOLOGI MARA

IMPACT OF COVID-19 PANDEMIC TOWARDS TAKAFUL BUSINESS: A

STUDY ON TAKAFUL AGENTS IN KLANG VALLEY

NOR NAJIHAH BINTI JAMAL RAMLI

Academic writing submitted in partial fulfilment of the requirements for the degree of

Diploma in Muamalat

Academy of Contemporary Islamic Studies

February 2021

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ABSTRACT

The growth of the Takaful industry has contributed to economic development especially in the Islamic financial system. The existence of Corona Virus Disease in 2019 resulted in many deaths and also affected the national economy including the banking industry.

Therefore, this study aims to examine the impact of Covid-19 on Takaful business and to analyze the perception of Takaful agents on the effectiveness of Takaful Business during this outbreak. The rapid emergence of the Covid-19 pandemic posed a challenge unmatched by the world. In addition to the risks to human health and lives, this pandemic has a drastic impact on companies and economies around the world.This study uses qualitative methods by using semi-structured interview questions to collect data.

Interview data were analyzed using thematic analysis. The results show a positive effect of covid-19 on the takaful business. While most contributors agree that Takaful is a necessity, money is a major factor hindering their intention to participate in this scheme during the outbreak. The researcher suggested that stakeholders should work together to improve the takaful protection plan to enable the incapable to get takaful protection.

Other than that, expanding the influence of media and technology among Takaful agents in raising awareness, knowledge, and intention of Muslims to participate in Takaful schemes.

iv

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ACKNOWLEDGEMENT

Alhamdulillahi rabbil a'lamin, the most gratitude to Allah SWT for giving me health, strength, opportunity, and mercy in completing this undergraduate assignment.

This research has been entitled “Impacts of Covid-19 pandemic towards Takaful: A study on Takaful Agents in Klang Valley” and is submitted as the requirements in accomplishing for the course, which is as Final Year Project.

First, I would like to express my sincere gratitude to Dr. Mohammad Syukri Bin Jalil, my supervisor, for his continued support of this research. Thank you for helping me with this project with your guidance, patience, and suggestions. His guidance helped me throughout the research for and writing of this research. I could not have imagined having better supervisors and mentors for my Diploma. Thank you so much. I would also like to thank my parents and family members for their love and support throughout this long process. While arranging and completing this assignment, a lot of people have given their advice, supports, and motivations.

In this valuable chance, I would like to express my gratitude to all my friends who helped me a lot in finishing this project and were vital to the success of this research.

Words cannot fully express my appreciation for all of you.

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TABLE OF CONTENTS

Page

AUTHOR'S DECLARATION ii

ABSTRAK iii

ABSTRACT iv

ACKNOWLEDGEMENT v

TABLE OF CONTENTS vi

LIST OF TABLES viii

LIST OF FIGURES ix

LIST OF SYMBOLS x

LIST OF ABBREVIATIONS / NOMENCLATURE xi

CHAPTER ONE INTRODUCTION 1

1.1 Research Background 1

1.2 Problem Statement 4

1.3 Research Objectives 6

1.4 Research Questions 6

1.5 Scope of The Study 6

1.6 Significance of The Study 6

CHAPTER TWO LITERATURE REVIEW 8

2.1 Introduction 8

2.2 Coronavirus disease in Malaysia 8

2.3 Takaful Business in Malaysia 9

2.4 Impacts of Covid-19 towards Takaful Business in Malaysia 10

CHAPTER THREE RESEARCH METHODOLOGY 17

3.1 Introduction 17

3.2 Research Instruments 17

vi

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3.3 Research Design 18

3.4 Data Collection 19

3.5 Data Analysis 20

CHAPTER FOUR RESULTS AND DISCUSSIONS 22

4.1 Introduction 22

4.2 Research Participants Background 22

4.3 The impacts of Covid-19 towards Takaful Business 24 4.4 The perceptions of Takaful agents towards the effectiveness Takaful Business

during this pandemic 30

CHAPTER FIVE CONCLUSION AND RECOMMENDATIONS 37

5.1 Introduction 37

5.2 Summary of the research 37

5.3 Recommendations 39

5.4 Limitation of future research 40

REFERENCES 41

APPENDICES 44

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