Title: The role of micro Takaful industry for the achievement of Islamic financial inclusion in Pakistan
Authors: Sanaullah Ansari; Zakaria Bin Bahari
Addresses: Centre for Islamic Development Management Studies (ISDEV), University Sains Malaysia (USM), UniStorage, Jalan Universiti, 11800 Minden, Pulau Pinang, Malaysia ' Centre for Islamic Development Management Studies (ISDEV), University Sains Malaysia (USM), UniStorage, Jalan Universiti, 11800 Minden, Pulau Pinang, Malaysia
Abstract: Financial inclusion is the provision of financial services at reasonable and affordable cost. Takaful is the Islamic form of insurance which is designed as per Sharia'h principles. Micro Takaful provides financial protection to blue-collared, low-income and under-privileged individuals. It provides financial security against property, health, disability and life. Pakistan is a Muslim country where interest-based financial system is switching towards Islamic. Currently, five Takaful companies are operating in Pakistan which is providing general Takaful and life Takaful services including micro Takaful on a very small scale. It includes financial coverage of low-cost houses, student's healthcare in government schools, financial protection of factory workers and crops-Takaful. Findings of the study reveal that micro Takaful industry is at the beginning stage in the country and Takaful companies must increase the span of their micro Takaful services because it has very important and key role in the achievement of Islamic financial inclusion in Pakistan.
Keywords: financial inclusion; financial services; micro Takaful; financial protection; Sharia'h; span of micro Takaful; Pakistan.
Middle East Journal of Management, 2021 Vol.8 No.2/3, pp.125 - 139
Received: 04 May 2019
Accepted: 23 Sep 2019
Published online: 06 Apr 2021 *