The Role of Awareness and Knowledge toward Motor Takaful Purchase Intention among Young Generation

Abstract

In Malaysia, the requirement to purchase a motor insurance is stated in the Road Transport Act 1987. It is a compulsory insurance policy for the owner of the motor vehicle in order to use the public road. There is no specific restriction to purchase as the decision to buy either conventional motor insurance or takaful products will depends on the insured's choice. Recently, the demand for motor takaful is increasing tremendously due to several factors. Nevertheless, the market penetration of takaful products still lower than the conventional insurance. Lack of awareness and knowledge about the concept of takaful were some of the contributary factors based on previous studies. This research aims to discover the role of awareness and knowledge towards motor takaful among young generation. Primary data collection was used through online survey involving young generation. Data analysis was performed by using SPSS version 27.0 and descriptive statistics were used to define the respondents. The findings showed lack of awareness and knowledge among the young generation pertaining to the elements of motor takaful. This finding would be useful for the takaful operators to look into their marketing strategies to stay competitive in the insurance and takaful industry.