Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

Diversification of Motor Takaful Surplus for Socio-Economic Development of Less Privileged Inhabitants in Saudi Arabia

Author(s): Yusuff Jelili Amuda, Shafiqul Hassan

Many aspects of Takaful have been successful in Saudi Arabia, but there is growing interest on Takaful for the less privileged inhabitants in order to achieve vision 2030. The purpose of this research was to empirically explore the legal basis and viability of diversifying motor Takaful for the less privileged inhabitants in Saudi Arabia. Quantitative survey method was employed. The population of study comprised six categories of less privileged inhabitants (the poor, elderly people, disabled, low income earning-workers and orphans). Convenient sampling technique was used where questionnaires were distributed; however, 153 questionnaires were used for the final analysis. The reliabilities of the instrument were between 0.808 and 0.921. It was showed that, the legal diversification of Takaful is powerful tool in addressing the needs of less privileged inhabitants as an attempt to improve the overall welfare of populace in the country. It is therefore recommended that the Takaful companies should continuously explore on how to expand the scope of motor Takaful surplus for socio-economic development and stability of financial services for the less privileged inhabitants specifically in order to attain vision 2030 by the Saudi Arabian government.