An Application of the Theory Reasoned Action (TRA) in Determining Factors Influencing Muslim Public Services Employees’ Intention to Participate in Motor Takaful

Although the majority of Malaysian are Muslims, data shows that the takaful penetration rate was much lower than the conventional insurance. Motor takaful as an important segment in the general insurance sector which was offered as an alternative to conventional is supposedly becoming the preferred choice for Muslim. For that, this study aims to look at the factors that influenced the intention to participate in motor takaful among public services employees. Applying the Theory of Reasoned Action (TRA), this study analysed respondents’ intention to participate in motor takaful. The variables used are based on TRA that are risk awareness, attitude and subjective norms. Multiple Linear Regression (MLR) was carried out to analyse the relationship between the independent variables and the dependent variable. The results showed that subjective norm does not significantly affect the dependent variable. Risk awareness and attitude significantly influence the intention to participate in motor takaful. This study provides a better understanding of the factors influencing the intention of vehicle users in choosing takaful. This study is important as one of the small contributions, especially to takaful operators in empowering takaful industry, specifically, and for Islamic financial system, generally, in Malaysia.