What is it about?
Sharia General Insurance is a type of insurance business that offers sharia principles-based non-life protection products. Sharia insurance product of motor vehicle is the most in demand by the public. On the other hand, this product also contributes significantly to claims for Partial Loss (PL), Total Loss Only (TLO), and Comprehensive All-Risk (CAR). This study aims to determine the relationship between the types of sharia motor vehicle claims and the customer’s locations using the correspondence analysis method. The analysis resulted in a correspondence map that explained the relationship between two variables, illustrating the types of sharia motor vehicle claims, which were mostly filled in specific city locations.
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Why is it important?
From the contribution achievement data, four major cities had high rates of growth in sharia motor vehicle insurance contributions, namely: Jakarta (JKT), Bandung (BDG), Surabaya (SBY), and Medan (MDN). This study revealed that many customers submitted Partial Loss (PL) claims in Surabaya (SBY) and Medan (MDN), Total Loss Only (TLO) claims in Bandung (BDG), and Comprehensive All-Risk (CAR) claims in Jakarta (JKT). This result can be used as a recommendation for sharia general insurance companies to improve customer location-based quality and product diversification.
Perspectives
Writing this article has been a meaningful journey, as it involved collaboration with experts in Islamic finance and insurance. This research has also opened doors to partnerships with industry professionals and regulatory bodies, ultimately contributing to a deeper understanding of Sharia-compliant motor vehicle insurance in Indonesia and its potential to promote ethical financial practices in the region.
Ahmad Fuad Zainuddin
Universitas Prasetiya Mulya
Read the Original
This page is a summary of: The Correspondence Analysis Between Types of Motor Vehicle Claims and Customer Locations: A Case Study on Sharia General Insurance in Indonesia, January 2024, Springer Science + Business Media,
DOI: 10.1007/978-981-97-3450-4_14.
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