期刊名称：International Journal of Academic Research in Business and Social Sciences
电子版ISSN：2222-6990
出版年度：2018
卷号：8
期号：11
页码：1733-1746
DOI：10.6007/IJARBSS/v8-i11/5350
语种：English
出版社：Human Resource Management Academic Research Society
摘要：The focus point of this very study is to identify the socio-demographic and economic factors affecting insurance coverage amongst the lowest income households (B40) in Perak. The Logit Model and Ordinary Least Square Model were applied in achieving the objectives of the study. As such, based on the results of Model 1, the findings show that gender, marital status, residential location, type of employment, savings and loans are significant features which give effect to the probability of insurance coverage ownership (Logit Model). Meanwhile, Model 2 shows that the level of education solely is crucial in affecting the total insurance expenditure (OLS Model). Furthermore, Model 3 suggests that only age and loans are the important influence to the probability of having an insurance (Logit Model). Finally, Model 4 exhibits that the factors of race, residential location, education level, type of employment sector, number of dependents, income, savings and loans are the essential influence to estimate the affordable amount of insurance expenditure (Model OLS). On average, the lowest-income households (B40) in Perak who have the most insurance procure monthly insurance expenses ranging from RM101 to RM200, while the lowest-income households (B40) who do not have insurance but hold the want to have one are most willing to obtain insurance expenses between RM51 to RM100. Hence, this indicates that the lowest income households (B40) in Perak are in fact interested in owning insurance but due to several factors or constraints; these have become the impinging reasons for their inability to pay the insurance premium monthly. To treat this, BNM should increase the participation in the ownership amongst Low Income Households (B40) by a reduction in distribution costs, simplification of the design and delivery of products as well as assurance of meaningful protection to policy holders.
