POTENTIAL OF LIVESTOCK TAKAFUL IN PAKISTAN
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Date
2015
Authors
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Journal ISSN
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Publisher
UMT,Lahore
Abstract
Livestock Takaful has emerged as Shariah compliant alternate to conventional livestock
insurance. The focus of the study is to access the demand for the livestock Takaful in Pa kistan. Livestock sector is considered the backbone of the economy and contributing
11.8% of GDP. It is engaging significant portion of population of the country. Pakistan is
fifth largest milk producing country. Livestock insurance confronts with different types
of risks faced by the farmers like flood, heavy rainfall, earthquake and other natural dis asters. Livestock insurance is used to mitigate risk. Livestock is yet prohibited by Shariah
scholars to elements of Riba, Gambling, Gharar and Qimar. A sample survey of 250 dairy
farmers was conducted between January to March 2015 in the three main Areas of Punjab
which have abundant of livestock Lahore, Kasur and Raiwind i.e. is to assess, to what
extent farmers are willing to livestock Takaful .Descriptive statistics and Binary logistic
Regression is were used to assess the potential and demand for livestock Takaful The re sult of a Binary logistic model indicates that Gender, Farm income, Household income
and No of animals have significant positive relation with demand for livestock Takaful.
Result of this study determined most of the farmers are willing to purchase Islamic lives tock Takaful for Cow share is 80(55.17). Policy implication, such as the need to establish
a Shariah compliant product for livestock with using different awareness programs
through different media sources.