Measures of Sustainable Efficiency of Diversification of Motor Takaful For Less Privileged Inhabitants in Saudi Arabia

Shafiqul Hassan, Yusuff Jelili

Abstract

The general Takāful has been growing in Saudi Arabia and attempt of the country to achieve vision 2030 calls for need to explore measures in diversifying motor Takāful for the less privileged inhabitants in the country. The purpose of this paper is to painstakingly investigate different measures of sustainable efficiency of diversification of motor Takāful for the benefit of less privileged inhabitants in the country. The method used in this paper is theoretical library-based paper galvanizing primary and secondary sources together using content analysis. The result indicated that there are identified dimensions or measures (governmental support, regulatory compliance, strategic investment in human capital, professional development and competitiveness) if properly utilised by the Takāful industries in Saudi Arabia, they have positive potential in enhancing sustainable efficiency in diversifying of motor Takāful for the benefit of less privileged inhabitants in the country. The implication of this study is that, the measures identified in this paper will serve as guides for policymakers, policy holders and more importantly it will provide a vista for an empirical assessment of measures in diversifying motor Takāful for the less privileged inhabitants. In conclusion, it is mentioned that meaningful expansion of the Takāful industry can be attained when different factors identified in this paper are considered as endogenous outcomes expected from motor Takāful in maximizing opportunities for less privileged inhabitants in the country. It is therefore suggested that, the aforementioned variables should be empirically investigated among the promoters of Takāful especially by Saudi Arabian Monetary Agency (SAMA) in order to constantly provide financial regulations in the country to as to fulfil the relevance and adaptability of Islamic financial system that makes its yardstick as accountability, transparency and uniformed regulations in the country.