Title: Developing microtakaful flood model in Malaysia - its relevance and policy impacts

Authors: Wan Norhayate Binti Wan Daud; Fakhrul Anwar Zainol; Fauzilah Salleh; Ahmad Shukri Yazid; Ahmad Zawawi Jamal

Addresses: Faculty of Economics and Management Sciences, Universiti Sultan Zainal Abidin, 21300 Kuala Terengganu, Terengganu, Malaysia ' Faculty of Economics and Management Sciences, Universiti Sultan Zainal Abidin, 21300 Kuala Terengganu, Terengganu, Malaysia ' Faculty of Economics and Management Sciences, Universiti Sultan Zainal Abidin, 21300 Kuala Terengganu, Terengganu, Malaysia ' Faculty of Economics and Management Sciences, Universiti Sultan Zainal Abidin, 21300 Kuala Terengganu, Terengganu, Malaysia ' Bank Rakyat School of Business and Entrepreneurship, University Tun Abdul Razak (UNIRAZAK), Kuala Lumpur, Malaysia

Abstract: Flood is the largest natural disaster occurrence in Malaysia and is expected to exacerbate due to the various extreme weathers in the country. Despite the high risk of flood, flood coverage insurance policy is not always available. To overcome this challenge, this study attempts to achieve two objectives: first, to examine the impact of flood risk to the affected community, and second to develop a model called the microtakaful flood model to help the flood victims among the poor community. This qualitative research focuses on multiple case studies. The study found that there is a need for the poor to be insured with the flood coverage in order that they can resume a normal life with less difficulty post-flood catastrophe. The results of this study provide a significant contribution by introducing the microtakaful flood scheme to the industry that could reduce the government's burden as a result of the flood loss.

Keywords: floods; flooding; poor communities; flood victims; microtakaful flood modelling; poverty; Malaysia; flood risk; flood insurance.

DOI: 10.1504/IJBCRM.2016.079008

International Journal of Business Continuity and Risk Management, 2016 Vol.6 No.3, pp.197 - 208

Available online: 05 Sep 2016 *

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