Takaful penetration among Malaysians today stands at only 15.2% compared to a 60% Muslim population. Due to the lack of awareness, misconceptions and ignorance, Takaful growth has been slower than anticipated in the past.
The myths surrounding it have also contributed to the misunderstanding or lack of attention towards Takaful. Let’s clear the air over the myths surrounding Takaful in Malaysia.
Myth 1: Takaful is only for Muslims and non-Muslims have to opt for conventional insurance by default – Takaful is not a religious product. Non-Muslims can explore this financial tool and all those who believe the ethical elements behind Takaful will find what they need with Takaful.
Myth 2: Takaful is less secure than conventional insurance – Being regulated through the Islamic Financial Service Act 2013, supervised by Bank Negara Malaysia and the Governor of the Bank holding the regulatory responsibility, Takaful is secure, safe and reliable.
Myth 3: Takaful is a religious matter that doesn’t follow conventional business standards or procedures – The Malaysian Takaful Association and Bank Negara Malaysia have standard guidelines and procedures that Takaful operators need to follow to ensure a healthy and highly credible environment for both the operators and certificate holders.
Now that you are aware of what is Takaful, how it works, the principles guiding it, and the busted myths, you can now make fair comparisons and choose the best protection for your future and your family.