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Zeitschrift für Wirtschaft und Finanzen

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Micro Takaful Insurance as a Tool to Guaranteeing Financing and Protecting Micro Enterprises

Abstract

Mamdouh H Ahmed*

Micro Takaful insurance is considered an important incentive for the protection and financing of micro enterprise and low income families. Therefore, it encourages banks to finance these micro enterprises. Micro Takaful insurance mainly supports protecting micro enterprises by using Micro Takaful insurance to aid in financing these enterprises which results in higher return on investment and growth in developing countries. Micro Takaful insurance should be the corner stone for development in developing countries since it provides the availability to finance catastrophe victims and supporting micro enterprises mainly in agriculture industry. Also, it targets the people living in isolated areas or in difficult living circumstances by supporting them in facing the risks they face, and as a result, it is an effective tools for facing poverty in developing countries. It is fair to say that the success of micro finance- which is certainly supported by Micro Takaful insurance- is a positive indicator on the availability of protecting the poor people, saving their investments in an economical way, and supporting social security networks. We remind Takaful Insurance Companies that by practicing in Micro Takaful insurance, they are performing their social responsibility towards the society they live in. We will study Micro Takaful insurance through the following sections: Section One: Micro Takaful Insurance: its definition, origin, importance and benefits. Section Two: Micro Takaful Insurance: covered risks and its characteristics. Section Three: The importance of Micro Takaful Insurance for micro enterprise finance. Section Four: Micro Takaful Insurance’s international experience and its marketing methods. Section Five: Micro Takaful Insurance’s future, success requirements and challenges. Section Six: Results and Recommendations.

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