Murni Yusoff

ISBN 978-967-394-230-5 [PROCEEDINGS OF IDMAC2015]
9th ISDEV International Islamic Development Management Conference
(IDMAC2015)
487
EXPLICIT ROLES OF TAKAFUL AGENTS IN ISLAMIC-BASED
RELATIONSHIP MARKETING APPROACH: THE GROUP OF EXPERTS'
VIEWS1
Murni Yusoff2
Centre for Islamic Development Management Studies (ISDEV)
Universiti Sains Malaysia
Penang, Malaysia
Email: murniyusoff.usm@gmail.com
Abstract
By holding dual roles of marketer and salesperson, Takaful agent is the frontline
representing a Takaful company. Although guidelines in terms of theoretical and
practical have been provided and implemented by the responsible parties, yet, the issue
of unethical marketing practices still exist in the industry. The marketing practices
applied in Takaful industry are almost identical to the practice of conventional
insurance. In fact, as a Muslim Takaful agent, the roles of vicegerent and servant of
Allah have to be embedded and nurtured in his daily routines including marketing
practices. Both roles are represented by Tawheed which is the core concept in Islamic
worldview. This paper attempts to achieve two aims, first, to identify principles in
Islamic-Based Relationship Marketing (IBRM) approach based on Tawheed concept.
The second aim is to identify the elements based on the principles identified earlier. In
achieving both aims, the data is collected through in-depth interviews. By interviewing a
group of experts, their views on the particular discussions are gathered and extracted.
The group of experts is selected from three categories such as religious figures,
academicians, and Takaful practitioners. From the discussions, the findings are divided
into two. First, there are four principles of Vicegerency (Khilafah), Wasatiyyah
(Moderation), Ukhuwwah (Brotherhood), and 'Adl (Justice) as a basis of IBRM
approach. Second, eight elements emerged from the principles such as religious
obedience, accountability, transparency, communication, commitment, trustworthy, and
moderate to be implemented by Takaful agents as explicit roles.
1
The paper is presented at The 9th
ISDEV International Islamic Development Management Conference
(IDMAC 2015), organized by ISDEV, Universiti Sains Malaysia (USM), at Penang on 08-09 December
2015.
2
Murni Yusoff is a Fellow under Academic Staff Training Scheme (ASTS), Centre for Islamic
Development Management Studies (ISDEV), Universiti Sains Malaysia, Penang, Malaysia. The author is
currently pursuing her PhD study in the field of Islamic Development Management at the same university.

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INTRODUCTION
Before embarking a challenging career as Takaful agents, beginners need to have their
building blocks in place as marketing is believed to be more arts than science (Ahmad
Mazlan Zulkifli, Badrul Hisham Abd Rahman, Nasser Yasin & Jamil Ramly, 2012). As
a Takaful agent, the roles of marketer and salesperson are simultaneously needed to be
performed. In preparing himself to perform both roles, Takaful agent is obliged to attend
learning and training programs conducted by the particular Takaful company.
Like other financial services industry in Malaysia, Takaful has code of ethics as a guide
to all Takaful agents by Malaysian Takaful Association (MTA). MTA also has guided
all Takaful companies to conduct training programs specifically for Takaful agents with
various subjects including technical and non-technical. Besides, there are a number of
reference books published by Islamic Banking and Finance Institution of Malaysia
(IBFIM) about Takaful guide to improve the Takaful agents' knowledge and skills.
Despite the efforts of creating a code of ethics, conducting training programs, and
providing reference books by the responsible parties, yet, the issues on unethical
marketing practices have still existed in the industry. As highlighted by Syed Moheeb
Syed Kamarulzaman (2012), the common complaints to Bank Negara Malaysia by
Takaful consumer relate to marketing and sales practices such as mis-selling by
exaggerating of benefits without explaining about product exclusions, and the usage of
scare tactics and intimidation by merely using Halal/Haram argument as selling points.
The marketing practices and attitude of Takaful agents are found to contribute on the
issue of rising the surrender rates of Takaful certificates (Marhanum Che Mohd Salleh,
2014). As reported by Bank Negara Malaysia, the surrender rates are increasing from
year to year based on statistics from 2004 to 2013. Further, the marketing practices
applied in Takaful industry are almost identical to the practice of conventional insurance.
Takaful agents are mostly dominated by Malay Muslims in Malaysia. According to
MTA Annual Report (2014), the number of individual Takaful agents registered in
Malaysia as at December 2014 are 78,979 agents, which comprised of 48,103 (60
percent) of Malay, follows by 27,368 (36 percent) for Chinese, 2,694 (3.0 percent) for
Indian, and others are only 814 (1 percent).
As a Muslim Takaful agent who believe in Tawheed, the roles of vicegerent and servant
of Allah have to be embedded and nurtured in daily routines including marketing
practices. Both roles are represented by Tawheed which is the core concept in Islamic
worldview. Therefore, this paper attempts to achieve two aims, first, to identify
principles in IBRM approach based on Tawheed concept. The second aim is to identify
the elements based from the principles identified earlier.
In achieving the specific aims, the paper is divided into three main parts. The first
section presents the literatures that have been grouped into three themes. Those themes
are concept of Tawheed, principles, and elements in IBRM approach. The second section
explains on the methodology applied in the paper while the third section discusses the

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analysis of views and summary of discussions from a group of experts in IBRM
approach.
CONCEPT OF TAWHEED IN IBRM APPROACH
IBRM refers to a process of building and maintaining relationships with people for the
purpose of economic growth and social justice to achieve the balance of material and
spiritual gains in seeking the pleasure of Allah (Mardhatillah). IBRM approach is
developed based on concept of Tawheed (Oneness of God). Tawheed is the belief for
every Muslim on this earth. Tawheed is not only an important concept but it also a
fundamental and basis for Islamic faith (Syed Othman AlHabshi, 1987).
Tawheed act as a core in every aspect of life. Tawheed is a source of thinking and also a
source of akhlaq (Ahmad Rasyid Sutan Mansur, 1979). Tawheed is the best integration
method, which can result in integrated personality. The integrated personality is the
personality that is characterized by a harmonious compatibility between thoughts,
feelings, tastes and behavior. (YaPEIM Academy of Management, 2011).
One of the chapters of the Quran describe the complete belief of Tawheed, as follows:
"Say: He is Allah, the One and Only; Allah, the Eternal, Absolute; He
begetteth not, nor is He begotten; And there is none like unto Him."
(Surah Al-Ikhlas (112):1-4)
Hamka (1984) stated that the verses above is about declaration of the oneness, or
begotten of God and His name is Allah. This belief is called Tawheed, which means
compiling pure thoughts, and sincere that God is impossible to be more than one. Ibnu
Kathir (2003) has interpreted the each of the verses in the above chapter as Allah is the
One, the Singular, Who has no peer, no assistant, no rival, no equal, and none
comparable to Him. The word (Ahad) must not been used for anyone in the affirmation
except Allah the Mighty and Majestic, because He is perfect in all of His attributes and
actions. The word of As-Samad means one Who does not give birth, nor was He born,
because there is nothing that is born except that it will die, and there is nothing that dies
except it leaves behind inheritance, and indeed Allah does not die and He does not leave
behind any inheritance. The last verse explained that He does not have any child, parent
or spouse.
To Muslim, the roles of vicegerent and servant of Allah are the important to be
implemented. In performing the roles as vicegerent and servant of Allah, man as a
development actor has to preserve two important relationships such as vertical
relationship (Hablumminallah) and horizontal relationship (Hablumminannas). The
vertical relationship represents man as servant of Allah while the horizontal relationship
represents man as vicegerent of Allah (Muhammad Syukri Salleh, 2003).
To remain living as Muslim and die in Islam, Muslim have to follow what Allah want
them to do, as there is always Islamic guidance in every aspect of life including in

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business and marketing. Although Quran verses explained in general, the Sunnah
performed by Prophet Muhammad SAW is the best role model in terms of practicing to
be the best Muslim.
Practicing of Tawheed begins with individuals and the essence of Tawheed is
transformed to the disciplines, institutions or organizations where the individuals
working or dealing with. The Tawheed concept is transformed into disciplines,
organizations or institutions as Tawhidic worldview or Tawhidic paradigm (Syed
Othman Al-Habsyi, 1987; Muhammad Arham, 2010; Suhaimi Mhd Sarif & Yusof
Ismail, 2011; Fadzila Azni Ahmad, 2011; Joni Tamkin Borhan, 2000; Mohamed
Sulaiman, Nur Arfifah Abdul Sabian, & Abdul Kadir Osman, 2014; Suhaimi Mhd Sarif,
2014; Mustafa Omar Mohamed, 2013).
The application of Tawhidic paradigm in the business or non-business organizations
have widely been discussed by academic scholars such as in Islamic banking (Joni
Tamkin Borhan, 2000; Masudul Alam Choudhury & M Hussain, 2005; Mehmet Asutay,
2008), education institutions (Mustafa Omar Mohamed, 2013; Mhd Sarif & Abdullah
Al-Mamun Sarwar, 2014), and Takaful (Marhanum Che Mohd Salleh, 2014).
Based on literatures, there are a number of studies have applied the concept of Tawheed
in developing new disciplines from Islamic perspective such as corporate social
responsibility (Muhammad Yasir Yusuf, 2012), advertisement (Teuku Meldi Kesuma,
2015), and relationship marketing (Marhanum Che Mohd Salleh, 2014).
PRINCIPLES OF IBRM APPROACH
Based on the concept of Tawheed, there are four Islamic principles adopted to become
the basis of IBRM approach. The four principles are Khilafah, Wasatiyyah, 'Adl, and
Ukhuwwah.
Principle of Khilafah
The first principle is Khilafah. The word "Khilafah" in terms of language is derived from
the word "khalafa" means "replace", replace others who called "Caliphate", which is the
successor of the Prophet named caliph (vicegerent), who carry out the tasks given to the
servant of God on earth to develop and built according to the teachings revealed to His
messengers since Adam until the end of the Prophet Muhammad (Ahmad Yusof Amin,
2013).
The true Muslim believes that his life is purposive, and the purpose of this life is to be
successful in his role as the vicegerent on earth. The expression of vicegerent on earth
does not mean that his activities should be limited to this earth only, but also consist of
the duty of the Muslim to design and administer the world in such a way that the rule of
Allah is established (Muhammad Arif, 1985).

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There are a number of studies related to vicegerency including theoretically and
empirically. In theoretical, Muhamad Ichsan and Jafril Khalil (2007) have studied the
concept of Khilafah in Syariah Financial Planning, Fazli Adam (2001) has studied the
concept in the views on Sunni and Shii, and Jaafar Sheikh Idris (1990) has studied the
classical meaning of vicegerent. Empirically, Muhammad Yasir Yusuf (2011) and H
Yusoff, F Darus, DM Abang Naim, H Fauzi, and Y Purwanto (2014) have applied the
principle of Khilafah in their studies on corporate social responsibility is Islamic
banking institution while Teuku Meldi Kesuma (2015) has applied it in his study on
advertisement from Islamic perspective.
Principle of Wasatiyyah
Wasatiyyah is the second principle in IBRM approach. The word 'Wasatiyyah' originally
comes from the Arabic word Wasat, which means 'center' or 'medium' (Ismail Ibrahim,
2012). Wasat also refers to middle or moderate, which means always avoid extremes of
behavior or disclosure; tends toward the middle ground, and the view enough to
consider the opinion of others. Moderate can also means taking the middle position
between two things that are mutually contrary, such as the spiritual and material,
individual and communal, realistic and idealistic, fixed and flexible, and so on (Muslim
Ibrahim, 2012).
There are a number of studies focus on Wasatiyyah. Muhammad Kamal Hassan (2013)
has studied the concept of Wasatiyyah, Abdullah Md Zin (2013) has studied on
Wasatiyyah approach, (Mohd Shukri Hanapi (2014) and Wan Kamal Mujani, Ermy
Azziati Rozali, and Nor Jamaniah Zakaria (2015) have studied on the concept
implementations in Malaysia.
Principle of Ukhuwwah
The third principle identified is Ukhuwwah (Brotherhood). The concept of brotherhood
negates the exploitation of one by other and it is immoral and sinful to possess wealth by
fraud, dishonesty and other evil practices (Muhammad Abdullah & Muhammad Junaid
Nadvi, 2011). As a Muslim, the consciousness to take the responsibility as a Khalifah on
earth is needed to ensure the relationship among human and relationship between human
and nature are in good condition and not to bring any harm.
There are number of studies that have studied the concept of brotherhood such as a study
by Islamic Relief (2014) in human development, Sherine Hafeiz (2011) in women
Islamic movement, and human brotherhood in a social system in Islam by Jamal Badawi
(2010).
Principle of 'Adl
‘Adl (Justice) is important in any human dealings. Justice and fairness are the basic
principles of all human transactions (Muhammad Abdullah & Muhammad Junaid Nadvi,
2011). In promoting fair trading, the Tawheed approach is the philosophical foundation

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and added value to Muslim and the problem of unfair competition will be eradicated
totally if the heart of businessman and consumers are shown by the light of belief
(Zulkifli Hasan, 2010).
Studies on justice have been discussed by many scholars in different context such as
business (Abdul Quddus Suahib, 2012; Mohd Zulkifli Muhammad, Ahmad Syakir Junoh
@ Ismail, Ahmad Ridhuwan Abdullah, Razman Hafifi Redzuan, & Siti Fariha
Muhammad, 2013), and social (Najma Mohamed, 2012; Islamic Relief, 2014).
ELEMENTS OF IBRM APPROACH
From the four principles explained above, seven elements are derived in the approach.
The elements are religious obedience, trustworthy, accountability, transparency,
commitment, communication.
Religious Obedience
Religious obedience can be measured from the adherence of the Islamic teachings itself
in Ibadah and Muamalat transactions. There are studies that focus on religious
obedience of Muslim in perspectives of consumer and worker (Ahmad Azrin Adnan,
2010; Rusnah Muhammad & Ab Mumin Ab Ghani, 2006; & Nor Azzah Kamri, 2007).
In the context of Takaful industry, IBRM has stressed on the element of religious
obedience that derived from the principle of Khilafah. The religious obedience of
Takaful agents can be measured from the five pillars of Islam and six pillars of Iman as
the basic. The religious obedience is important to Takaful agents in building
relationships with God, relationship among human beings and relationship between
human with nature in their daily lives.
Amanah
Amanah (Trustworthy) is an important element of religious obligation to be cultivated
by every Muslim. Trust is a moral virtue and duty incumbent on a Muslim in the
performance of his affairs as it demands sincerity in working and purity of intention on
every believer (Abdullah Haron, Muhammad Adli Musa, Ahmad Zakirullah M Shaarani,
2013).
Amanah is needed in business transactions especially building and maintaining
relationships with customers. With trust in IBRM approach, customers have more
confidence in Takaful agents in keeping personal information safe and secure without
misleading the information. Once the trust is developed between the customer and
Takaful agent, the dealing in the future become much easier and can lead to customer
retention.
Accountability

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Accountability is inter-connected with transparency as high-level of transparency is
required to hold people accountable for their actions (Naceur Jabnoun, 2012). In Islamic
perspective, the term of accountability can be concluded as a concept in ethics with
several moral behaviours associated with it. It covers such concepts as responsibility to
perform obligation, being answerable of what has been done regarding that obligation,
enforcement, and liability to do the commands, and blameworthiness in case of
disobedience (Abdullah Haron, Muhammad Adli Musa, Ahmad Zakirullah M Shaarani,
2013). In marketing Takaful through IBRM approach, the Takaful agent needs to be
accountable for his actions and words as it reflects the image of himself and reputation
of the Islamic organizations.
Fair Dealing
As described by Muzammil Siddiqi (2007), there are eight principles in fair dealing
according to Islam. The principles are no fraud or deceit, the sellers must avoid making
too many oaths when selling merchandise, mutual consent is necessary, be strict in
regard to weight and measures, monopoly is prohibited, the business is free enterprise
(means the price of the commodities should not be fixed unless there is a situation of
crisis or extreme necessity), the hoarding merchandise in order to increase the prices is
forbidden, and , the transaction of Haram items, such as intoxicants, are forbidden. In
the context of dealing with Takaful customer or potential customer, the agent must
provide honesty and be fair to any level of people in terms of delivering information
about Takaful products and services.
Commitment
Commitment plays an important role in the performance of any task implemented. In
RM, commitment is defined as an implicit or explicit pledge of relational continuity
between exchange partners (Dwyer, Schurr, & Oh, 1987). In the context of Takaful
industry in implementing IBRM approach, the commitment is important to preserve a
relationship built whether before and after sales (closing) with customers. It depends on
the efforts of Takaful agent in terms of time and knowledge to spend with the customers.
Communication
Communication in Islam is the process of delivering message to a person or society to be
owned about information, knowledge, skills, character, and belief based on Syariah.
There are four types of communication in Islam namely Hablumminallah (Relationship
with Allah), Hablumminannaas (Relationship among human beings), Al-Muhasabah
(Reflection), and communication with the universe (Ghazali Sulaiman, 2008). In the
context of Takaful, communication by Takaful agents plays a vital role in delivering
value of products and services to be understood and able to convince the customer.
Transparency

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Being transparent is an obligatory acts to all Muslim and failure to perform it is a sin
(Baker Ahmad Alserhan, 2011). In the context of Takaful, transparency is required in
whole operations. For Takaful agents, there is a need of transparency in dealing with
customers. Transparency is applicable on disclosure of inclusion and exclusion of the
Takaful products both in terms of cost or non-cost to customers.
METHODOLOGY
In-depth interviews have been conducted in collecting data from a group of experts.
There are six experts selected to be respondents in representing three categories such as
religious figures, academicians, and Takaful practitioners. Each of the categories
represented by two experts. All experts own Takaful background either as Syariah
advisors, lecturer in Takaful subject, researchers in Takaful discipline, or staffs in
Takaful companies. From the interviews, the data is extracted and analyzed using
Content Analysis. The feedbacks and comments from the group of experts lead to
changes either by eliminating, expanding, or amending the principles and elements
identified in IBRM approach. The name and details of the experts and categories are
described in Table 1.
Table 1: List of Group of Experts
Category Details of Respondents
Religious Figures
1. Dato' Mohd Bakir Mansor
Distinguished Syariah Advisor
Institute of Islamic Banking & Finance
Malaysia (IBFIM)
2. Ass. Prof. Dato' Mohd Fakhruddin Abdul
Mukti
(specialized in Tawheed and Aqidah)
Lecturer of University Malaya (UM)
Academicians 3. Ass. Prof. Dr Nurdiana Irwani Abdullah
(specialized in Takaful)
Lecturer of International Islamic
University of Malaysia (IIUM)
4. Dr Marhanum Che Mohd Salleh
(specialized in in Islamic Relationship
Marketing & Takaful)
Lecturer of International Islamic
University of Malaysia (IIUM)
Takaful Practitioners
5. Wan Mohd Nazman Wan Mahmud
President
Ikhlas Academy
Takaful Ikhlas Berhad

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6. Mohd Suhaimi Ahmad
General Manager of Retail Agency
Division
Syarikat Takaful Malaysia Berhad
ANALYSIS OF PRINCIPLES IN IBRM APPROACH
Based on the views from a group of experts selected as respondents, the four principles
of Khilafah, Wasatiyyah, ‘Adl and Ukhuwwah are analyzed.
Principle of Khilafah
All of the respondents are totally agreeing with the application of vicegerency in the
approach. Their views are concluded in three. First, vicegerency is seems to represent
the roles of man on the earth. Both academicians highlighted that vicegerency is not only
a principle, but more to the roles. One of the academicians has stated that:
Khilafah is more on roles of man. The role of Takaful agent is a leader or
Da’i. It is important to be Da’i to disperse the spirit of Takaful and the spirit
of mutual helping each other, as a leader that leads the society to attain of
Maslahah among them, to lead the society on the importance of future
financial protection, financial management, at the same time the spirit of
Ukhuwwah3
.
Second, vicegerency can be best described as a Muslim who brings the most benefits to
others. One of the religious figures mention two related Hadith to represent the roles of
vicegerent as follows:
On the authority of Abu Hamzah, Anas bin Malik (may Allah be pleased with
him), the servant of the Messenger of Allah (peace be upon him) that the
Prophet (peace be upon him )said:
None of you (truly) believes until he loves for his brother that which he
loves for himself.
(Sahih Al-Bukhari and Muslim)
Narrated from Jabir: The best of men is the most useful to human being.
(At-Thabrani)4
Third, the application of vicegerent roles of Takaful agents. In playing the roles of
vicegerent, one of the practitioners emphasizes that:
3
The interview was conducted on 15 October 2014, from 12.13 until 1.04pm at the expert's office.
4
The interview was conducted on 08 October 2014, from 11.00am until 1.00pm at the expert's office.

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We have to lead ourself to become a self-leader. To be a great Takaful
agent, the agent needs to be lead including his personality, communication,
respect to the leader, and stand up for the company. The agent needs to have
Takaful protection first before he promote to others5
.
Principle of Wasatiyyah
All respondents have agreed with Wasatiyyah as one of the principle of IBRM approach.
The views of the respondents are concluded in two. First, the religious figures have
explained Wasatiyyah in the context marketing and sales. He says:
Be moderate. In between stingy and spendthrift. In the context of profit in
marketing, the price cannot be charged high that overburden the customer.
The agent can get high commission but the customers are burden with the
price of product imposed are high. The pricing should be moderate, in the
middle, get profit must be appropriate, must have profit to be economically
viable. If the profit is too low and unable to reach the working capital, it is
not the way of Islam in doing business. It is supposed to be sufficient to be
viable and to survive in personal use, and not burdening both parties6
.
Second, academicians have different views of Wasatiyyah. Wasatiyyah is not only
represents moderation, yet, it is deeper than that. One of the academicians elaborated the
concept of Wasatiyyah with explaining:
Wasatiyyah brings two meanings. It can cover both fairness and moderation.
The usage of fair dealing under justice is the similar meaning such as
fairness7
.
The above views of two dimensions of Wasatiyyah is also argued by Muhammad Kamal
Hassan (2013). According Muhammad Kamal Hassan, religious or cultural
"moderation" is one of important dimension of Quranic Wasatiyyah, but not the whole
of it, therefore when the term Wasatiyyah is used, it should not be confused the part with
the whole. Intellectual integrity and objective scholarship require that in the discourse
on Wasatiyyah, one should not forget to relate the qualities, attributes or values of
balance or moderation to the basic qualities of justice ('adalah), excellence (khairiyyah)
as explained by the well-established classical commentators of the Quran such as al-
Tabari, al-Razi, al-Qurtubi, or Ibnu Kathir. Therefore, when the topic of Wasatiyyah or
Islamic Moderation or justly balanced nature of Islam are discussed, we should not lose
sight of the obligation upon Muslims to become religious, moral, and civilizational
5
The interview was conducted on 11 September 2014, from 11.26m until 12.50pm at the expert's office.
6
The interview was conducted on 08 September 2014, from 2.20pm until 3.10pm at the expert's office.
7
The interview was conducted on 16 October 2014, from 3.27pm until 5.50pm at the expert's office.

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witnesses over mankind, with the attributes of justice and moral excellence as the
fundamental qualities of the Muslim community.
Despite the comment from the respondents from the different understanding with
regards to Wasatiyyah concept, both fairness and moderation is also important to be
implemented in Takaful companies. However, the researcher has overlooked Wasatiyyah
in the two dimensions as argued by the respondents.
Principle of Justice
All of the respondents agreed with justice to be apart from the principle of IBRM. The
discussion among respondents is concluded in two. First, justice is implemented in
Takaful companies as an obligation in both parties, namely Takaful companies and
Takaful agents. It also represents the justice in strengthening the principal-agent
relationship. One of the practitioners explains justice in the context of principal-agent
relationship as follows:
In the context of training, for Takaful operators, it place the requirement of
CPD (Continuation Professional Development) hours, thus, the Takaful
operators should organize the training programs for agents so that they can
be successful. Be fair through providing the training programs. If it is
imposed, it is considered as unfair. Sometime it has to be imposed to be fair.
There are 30 hours of CPD to instill the syariah values in training such as to
cover your Aurah, and proper attire to non-Muslim. For takaful agents, the
agents must attend training because already sign the agency agreement as
an agent. If the agent is absent, he is unfair and oppressing to himself
because he could not become an ethical, skillful, knowledgeable agent. If he
is absent, he has breached the agreement with the company, thus, the breach
of trust is not only by oppressing himself, but also to his family as well as he
is irresponsible to customer8
.
Principle of Brotherhood
All respondents agreed brotherhood as one of the principles in the IBRM approach. The
views of respondents are concluded in two. First, Takaful industry itself is created based
on the essence of solidarity. One of the practitioners asserts:
The concept of Takaful derived from the principles of Ukhuwwah and
Tabarru’. You have to start with agents. You have to start with building
relationship. Relationship built on how many? Started from one.
Relationship started from you first, yourself. To develop Ukhuwwah in
8

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Takaful agency must be unconditional love. Put condition that one day to get
customer based on you, not the business. As agency is made up of
individuals. Takaful operator come to existence due to you9
.
Second, the Takaful agents responsible to develop good relationships with people as part
of Ukhuwwah. As one of the academicians express her opinion:
The takaful agent must build develop good ukhuwwah. You can relate it to
the objective of Takaful. To increase the spirit of brotherhood and also to
attain the Maqasid Syariah by building relationship with human10
.
Both views above have supported that Takaful have been created based on the essence of
brotherhood. From the essence of brotherhood, the concept of Taawun has emerged in
operating Takaful and Tabarru' has become one of the principle to conduct Takaful
business.
ANALYSIS OF ELEMENTS IN IBRM APPROACH
For elements in IBRM approach, there are seven elements derived from the four
principles. Each of the elements are commented by the experts.
Religious Obedience
The religious obedience is agreed to be used as an element by all respondents. The views
are concluded in two. First, the majority of the respondents have agreed that religious
obedience is related to piety (Taqwa). Second, Takaful practitioners has emphasized on
the importance of religious obedience in doing any activity or job. He stresses:
Religious obedience is a must. It should be number one. I always emphasize,
If we forget Allah, Allah will forget us, may be not now, but sooner and
later11
.
Trustworthy (Amanah)
All of the respondents agreed with trustworthy as an element that derived from the roles
of vicegerent. Trustworthy is an element to be practiced when dealing with customer
information. One of the religious figures mention:
Tell the truth, not to hide any fact, to preserve the personal details of
customers and not to reveal the information to any third party12
.
9
10
The interview was conducted on 16 October 2014, from 3.27pm until 5.50pm at the expert's office.
11
The interview was conducted on 14 September 2015, from 10.04am until 10.39am through telephone.
12

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Further, the above view has been supported by Takaful practitioners. One of them adds:
Amanah can be seen in two ways; when disclosing information and receive
payment in cash from customer. If he is truly trustworthy, he will disclose
whatever information that the customer disclose to him and settled the
payment to Takaful company on behalf of customers13
.
Accountability
All of the respondents agreed with accountability as one of the elements. Several
respondents have responded to accountability and can be concluded into two. First, the
use of the term accountability in the approach. One of the academicians has emphasized
on accountability and Amanah in the approach. She claimed the accountability and
Amanah have almost similar meaning and suggested that the differences between the
two terms must be distinguished clearly in order to be used in the approach.
The above issue has been argued by another respondent who has opined that
accountability has a different meaning from Amanah. As the respondent which is
among the Takaful practitioner mentions:
Amanah differs from accountable. To agent, Amanah is about implementing
his tasks, which is to market Takaful products. Accountable is more on
keeping confidentiality and more responsible on what he can do for
customer. Agent must be Accountable to customer so that the plan selected
fulfill the customer's need14
.
Second, accountability is a crucial role need to be practiced by Takaful agents. One of
the religious figures has highlighted that:
An agent can be questioned on what he has provided to customer. If any
agent did not provide true fact on particular products and services, he can
be sued in court or terminated15
.
Fair Dealing
All of the respondents have agreed with fair dealing to be applied as one of the elements.
The discussions are concluded in two. First, the dissemination of information must be
balanced and fair among customers. One of the respondents from religious figures
explains:
13
14
15

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500
Justice is about the equal consideration. What is given to Muslim, must be
given the same to non-Muslim. What is given to man is given the same
women. In the context of medical product from cancer, what the product can
cover from cancer must be informed to A, and must be equally informed to
B. The information cannot be unequally explained such as explain to all to A
but to B only apart from it, that is unfair. If want to be fair, what the product
A characteristics given as much to Faridah, it should be the same must be
given to Fatimah. If you give Fatimah apart from the information, that is
called unfair. Same goes to claim on medical, accident, or fire, what is given
to Fatimah, must also be given to Faridah16
.
Fair dealing has been described as important in Takaful as it is one of the requirements
to deal with people, and also in marketing. As highlighted by Muhammad Anwar and
Mohammad Saeed (1996), if a corporation condemns a competitors' products and exalts
itself through unfair practices, then it is the responsibility of its professional
management, the government, Shariah enforcement agencies and authorities, and public
interest groups to curb these practices in order to pave the way for the development of an
Islamic society based on the principles of fairness, equity, and justice.
Commitment
All of the respondents are agreed with commitment as one of the elements in IBRM
approach. The views can be concluded into three. First, the views of religious figures are
more towards the expression from the concept of Tawheed in life. They have agreed that
commitment is shown through vigorously in working and efficiency in working, as
working is considered as Ibadah. One of them highlights commitment with one Quranic
verse:
Therefore stand firm (in the Straight Path) as thou art commanded...
Surah Hud (11):112)
Second, the views from academicians with Takaful and RM background are different as
they have perceived commitment as a must in marketing. Commitment is the core in RM
as perceived by the academicians. Third, the views from Takaful practitioners are more
to the practice of Takaful agents in giving full commitment to market Takaful products
that lead to sales. Takaful agents earn is based on commission, and the commission
depends on their commitment and efforts.
Communication
All of the respondents agreed with the importance of communication in marketing.
However, they have different views according to respondent categories. Thus, it can be
concluded into three. First, communication is an important medium to Takaful agents as
marketers and salesperson. One of the religious figures highlights:
16

(IDMAC2015)
501
Agent must be good in speaking with facts, need to have communication
skills such as speaking and writing17
.
Second, the philosophy of communication is the core of any relationship built whether
individually or institutionally. One of the practitioners has asserted the importance of
communication in an organization. As he says:
The breakdown of any relationship of any institution/ organization is due to
communication. Communication should be truth and truthful. For
relationship between agent and customer, agent cannot be truthful in
disposing and sharing knowledge if he is not being truth to himself. The
breakdown is due to whether they are not communicate, not honest
communication, not transparent communication, not sincere communication,
and not trustworthy communication. In nutshell I will say, it start with being
truth to ourself18
.
Based on the literatures, the researcher is aware of the communication is used in the
other marketing approach too. However, IBRM approach is specifically developed to
emphasize communication from the Islamic perspective, derived from the principle of
Ukhuwwah.
Transparency
All respondents agreed that the element of transparency is applied in the approach. The
views of the respondents can be concluded into two. First, transparency is an important
element in Takaful industry as it is needed from both Takaful agents and customers
during marketing and closing sales. One of the academicians highlights that the element
of transparency is apart from the Islamic Financial Services Act (IFSA) 2013
requirements. She emphasizes that:
IFSA requires Takaful operators as well as participants to disclose everything
clearly. Takaful operators have to disclose the amount of contributions, benefits,
any exclusion. That is part of ethical marketing. Participant need to disclose all
material facts such as age, occupation, health condition, and even for smoker, how
many cigarettes you are taking per day also need to be disclosed19
.
Second, the practice of transparency in the marketing Takaful product and services
among Takaful agents is similar with the explanation from the above academician. One
of the practitioners adds:
17
18
19
The interview was conducted on 15 October 2014, from 12:13pm until 1.06pm at the expert’s office.

(IDMAC2015)
502
In marketing Takaful, agent need to disclose everything, otherwise they will
be subject to non-disclosure. Customer got to be transparent in disclosing
his health condition, and financial status20
.
SUMMARY OF DISCUSSIONS ON IBRM APPROACH
Based on the above discussion by the group of experts, the summary of the principles
and elements have been revised.
The principle of Khilafah has reached a consensus of opinion among the experts. Derive
from the concept of Tawheed, Khilafah is more focusing on roles of man on the earth as
a leader in whatever activities he involves. From the discussion, the researcher has
agreed with the views of several experts that highlighted the roles of man as vicegerent.
From the roles of vicegerent, it has brought three other principles, namely 'Adl,
Ukhuwwah and Wasatiyyah. The goal of vicegerent is to achieve Maslahah Ammah and
Mardhatillah (pleasure of Allah).
The principle of Ukhuwwah has strived to be the important principles in Takaful as a
whole. The gist of Takaful existence comes from the essence of brotherhood.
Brotherhood creates, two other principles in Takaful such as Tabarru' and Taawun.
However, in marketing specifically IBRM which is designed specifically for Takaful
companies, the component of Tabarru' and Taawun is embedded in this concept and
nurtured through the elements in Ukhuwwah. The elements in Ukhuwwah are
communication and commitment.
Wasatiyyah, is also one of the principle that has been applied in Takaful industry as a
whole. Wasatiyyah has been nurtured in the Takaful operations as moderation and
fairness. Based on the discussion among experts, there are two dimensions of
Wasatiyyah are applied in Takaful namely moderate and fair dealing. Hence, the
researcher has considered adding another element in expressing the other dimension of
Wasatiyyah in Takaful marketing, namely moderate. These two dimensions are
inculcated in IBRM approach as elements to be practiced by the Takaful agents.
'Adl is one of the principle in IBRM that has been considered to be maintained though it
has almost similar roles as Wasatiyyah. Wasatiyyah covers fairness and it is represented
by fair dealing and moderate, however, justice is the principle that represents fair dealing
and transparency.
For elements in IBRM, it involves changes in the approach. From seven elements,
another element has been added. The researcher has considered the following changes to
several existing elements, as described by Table 2.
Table 2: Changes of Principles and Elements of IBRM
(Before and After Feedback of Experts)
20

(IDMAC2015)
503
Before After
Elements Principles Elements Principles
1) Religious
Obedience
2) Amanah
3) Accountability
4) Transparency
5)
Communication
6) Commitment
7) Fair Dealing
Khilafah
Khilafah
Khilafah
Justice
Ukhuwwah
Ukhuwwah
Justice
1) Religious
Obedience
2) Amanah
3) Accountability
4) Transparency
5)
Communication
6) Commitment
7) Fair Dealing
8) Moderate
Khilafah
Khilafah
Khilafah
Justice
Ukhuwwah
Ukhuwwah
Justice
Wasatiyyah
Wasatiyyah
After obtaining the group of experts' views, the elaboration on the concept of Tawheed is
revised. The relationships exist in the core concept is divided into two, internal and
external relationships. The internal relationship is the relationship between man and
Allah (Hablumminallah) and it is represented by three principles such as Ikhlas,
Tawakkal, and Qanaah, which are not being discussed in this paper. For external
relationship (Hablumminannaas), it is represented by four principles such as Khilafah,
'Adl, Wasatiyyah, and Ukhuwwah.
Both relationships mentioned above lead to identification of two roles, namely explicit
and implicit roles of Takaful agents in IBRM approach. The explicit roles have been
represented by the eight elements such as religious obedience, fair dealing,
accountability, commitment, communication, transparency, trustworthy, and moderate.
All explicit roles of Takaful agents have been discussed and presented in IBRM
approach have been identified based on concept of Tawheed as the grassroots.
CONCLUSION
As a true Muslim, certainly the roles of vicegerent need to be embedded and developed
in daily routines. In the context of Takaful agent, it is a challenging career to be
performed when he/she represents the Islamic business organizations and has to be
careful with his/her approach in marketing Takaful products to society. Not only the
products and services provided must be Islamic to comply with Muslim needs, but the
holistic approach includes marketing and selling also suppose to be in Islamic way
developed from its root, which is Islamic worldview. IBRM approach is an initiative to
improve the relationship built and maintained with customers based on the concept of
Tawheed as the grassroots. The approach is also potential to be applied in other business
or non-business organizations as framework with adapting the principles and elements to
the particular organizations.

(IDMAC2015)
504
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