Consumer Awareness And Knowledge About Takaful (Islamic Insurance): A Survey Of Pakistan

Abstract

This survey report delves into the awareness and understanding of Takaful insurance among consumers in Pakistan. Takaful, a concept based on Islamic principles of mutual cooperation and ethical compliance, offers an alternative to conventional insurance. The report compares Takaful with conventional insurance, highlighting its distinct features rooted in Shariah law and highlighting the factors influencing Takaful adoption are explored, including consumer awareness, product compatibility with values, and market needs. For this purpose, primary data was collected through surveys (Questionnaires). A total of 315 questionnaires were randomly distributed among the participants in Lahore, and out of that 250 were useable. The finding shows that only 59.6% of respondents did not know about Takaful. Surprisingly, 58% of respondents don’t know that Takaful is a Shriah-compliant product. Furthermore, 62.8% are unaware of this ethical aspect of Takaful insurance. In terms of applicability, 30.9% believe Takaful is appropriate for anyone, regardless of religion. However, 69.1% believe otherwise, indicating some doubts about its universal applicability. Also, 45.7% of participants correctly recognize that Takaful is free of interest, whereas 54.3% are not aware that Takaful eliminates uncertainty.