Takaful Full Research

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TABLE OF CONTENT

TITLE PAGE

1.0 INTRODUCTION 2

2.0 BACKGROUND OF CONTRACT 3-4

3.0 APPLICATION OF TAKAFUL/INSURANCE PRINCIPLE 5-6

4.0 THE ELEMENTS OF CONTRACT 7-9

5.0 RULINGS 10

6.0 PREMIUM/ CONTRIBUTION 11-13

7.0 COVERAGE AND BENEFITS 14-16

.0 E!CLUSION 17-20

".0 LAPSES 21

10.0 INVESTMENT 22

11.0 DISTRIBUTION OF SURPLUS # INVESTMENT AND

UNDER$RITING SURPLUS 23

12.0 CONCLUSION 24

13.0 REFERENCES 25

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1.0 INTRODUCTION

The word Takaful is derived from the Arabic verb kafala which sim!l" mea#s to take care

of o#e$s #eed% Therefore& the !act betwee# at least two !arties a'reei#' to (oi#tl" 'uara#tee

o#e a#other i# the eve#t of a loss& as a co#se)ue#t of bei#' afflicted b" a calamit" defi#es

the term Takaful% *ikewise& the (oi#t-'uara#tee as embedded i# the co#ce!t of Takaful

ca# be tra#slated i#to !ractical o!eratio# i# the form of busi#ess or commercial tra#sactio#

withi# the t$i(ari or !rivate sector as o#e of the +slamic fi#a#cial !la"ers i# a market

eco#om"% ,+#vesto!edia

+#sura#ce is defi#ed as a# arra#'eme#t b" which a com!a#" or the state u#dertakes to !rovide a 'uara#tee of com!e#satio# for s!ecified loss& dama'e& ill#ess& or death i# retur#

for !a"me#t of a s!ecified !remium ,./ford ictio#ar"%

Takaful o# the other ha#d is defi#ed as the !act betwee# at least two !arties a'reei#' to

 (oi#tl" 'uara#tee o#e a#other i# the eve#t of a loss& as a co#se)ue#t of bei#' afflicted b" a

calamit"% ,ala"sia# Takaful Associatio#

owever& both carr" o#e !ur!ose which is to 'ive !rotectio# for i# e/cha#'e of the

co#tributio# or !remium !aid with some terms a#d co#ditio# attached%

This re!ort is !re!ared as a !art of assi'#me#t for the sub(ect takaful a#d re-takaful

o!eratio#s a#d !roduct% +ts ob(ectives are to differe#tiate betwee# rude#tial Takaful

+#vestme#t li#k !olic" a#d reat 8aster# *ife +#sura#ce +#vestme#t li#k !olic"% This

com!arative a#al"sis i#cludes the back'rou#d of the co#tract& !ri#ci!les of the co#tract& the

eleme#ts of the co#tract& the 'over#i#' law& !remium or co#tributio#s& covera'e a#d

e/clusio#& be#efits& char'es& la!ses a#d the i#vestme#t%

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2.0 BACKGROUND OF THE CONTRACT

2.1 GREAT EASTERN LIFE INSURANCE INVESTMENTLINK

A# i#vestme#t-li#ked !la# i#sura#ce !la# is life i#sura#ce that combi#es i#vestme#t a#d

 !rotectio#% our !remiums !rovide #ot o#l" a life i#sura#ce cover& but !art of the

 !remiums will also be i#vested i# s!ecific i#vestme#t fu#ds of "our choices% ou 'et to

choose how to allocate "our i#sura#ce !remiums towards !rotectio# a#d i#vestme#t%

edical i#sura#ce fu#ctio# as a form of !rotectio# to cover u#foresee# e/!e#ses arisi#'

from ill#ess& i#(ur" or accide#ts& which ca# be ver" e/!e#sive& es!eciall" if hos!italisatio#

a#d:or sur'er" is re)uired% etti#' the ri'ht medical i#sura#ce also e#sure that the !erso#

wo#;t have to fret about the cost of seeki#' treatme#t duri#' i# emer'e#c"%

This co#tract is betwee# the clie#t #amed 173%25 mo#thl" for 57 "ears% The fu#d is i#vested 100? i# *io# trate'ic

@u#d% +t is a# i#vestme#t li#ked !la# with the su!!leme#tar" of medical card% +f the clie#t

wishes to cha#'e the mode of !remium !a"me#t& the clie#t shall #otif" the com!a#" i#

writi#' !rior to the !remium due date a#d the" will be advised accordi#'l"%

The maturit" of !olic" is 57 "ears% @or the first 20 "ears& the !remium has to be !aid a#d

after the maturit"& the covera'e is still co#ti#ued u#less at the maturit" date& the all

i#vestme#t amou#t is withdraw# a#d accou#t is closed% +f there is a bala#ce i# the accou#t

the# the covera'e will be co#ti#ued for the #e/t 40 "ears%

Bith the medical card& there are few riders attached to e#ha#ce !olic" a#d !rotect clie#t%

>iders i#clude critical ill#ess be#efit& a#d hos!italiCatio# be#efit%

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2.2 PRUDENTIAL BSN TAKAFUL INVESTMENTLINK 

ru Takaful*i#kla# 'ives "ou the fle/ibilit" to meet "our cha#'i#' fi#a#cial #eeds i#

o#e !la#% ou determi#e the amou#t of !rotectio#& savi#' a#d i#vestme#t "ou re)uire at

a#" !oi#t i# time a#d ru Takaful*i#kla# la# shall be able to ada!t to "our #eeds%

The !la# also kee!s to the values "ou believe i#& as it is based o# the !ri#ci!les of shared

res!o#sibilit" a#d co-o!eratio#% artici!a#ts co#tribute to the !la# based o# Tabarru;

,do#atio#& which is the# used to su!!ort other members i# the !la# i# times of #eed%

This co#tract is betwee# the clie#t #amed ik ur Ati"ah bi#ti ik usta!ha ,A'e #e/t

 birthda" is 31 a#d rude#tial-% This co#tract was si'#ed o# 1 Au'ust 2012 with a

 !remium !a"me#t of >150%00 mo#thl" for 51 "ears% The fu#d is i#vested 100? i#

Takaful a#a Drus ,TD% +t is a# i#vestme#t li#ked !la# with the su!!leme#tar" of 

medical card% +f the clie#t wishes to cha#'e the mode of !remium !a"me#t& the clie#t shall

#otif" the com!a#" i# writi#' !rior to the !remium due date a#d the" will be advised

accordi#'l"%

The maturit" of !olic" is 51 "ears% @or the first 20 "ears& the !remium has to be !aid a#d

after the maturit"& the covera'e is still co#ti#ued u#less at the maturit" date& the all

i#vestme#t amou#t is withdraw# a#d accou#t is closed% +f there is a bala#ce i# the accou#t

the# the covera'e will be co#ti#ued for the #e/t 40 "ears%

Bith the medical card& there are few riders attached to e#ha#ce !olic" a#d !rotect clie#t%

>iders i#clude critical ill#ess be#efit& a#d hos!italiCatio# be#efit%

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3.0 APPLICATION OF TAKAFUL/ INSURANCE PRINCIPLE

3.1 GREAT EASTERN LIFE INSURANCE INVESTMENTLINK

U%&'(% )''* +,-% oth clie#t a#d com!a#" disclose all releva#t i#formatio#% efore the

si'#i#' of co#tract the clie#t has to disclose all medical histor" so that& there are#;t a#"

clashes duri#' time of claim%

I(, -%(%  .btai#ed i#sura#ce !la# i# order to !rotect self i# the eve#t of 

u#foresee# circumsta#ces% +# this case&

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3.2 PRUDENTIAL BSN TAKAFUL INVESTMENTLINK

U%&'(% )''* +,-%  oth !artici!a#t a#d Takaful .!erator discloses all releva#t

i#formatio#% efore the si'#i#' of co#tract ik ur Ati"ah bi#ti ik usta!ha discloses

all medical histor" so that there are#;t a#" clashes i# claims%

T,9,+:, -%(% .btai#ed i#sura#ce !la# i# order to !rotect self i# the eve#t of 

u#foresee# circumsta#ces% +# this case ik ur Ati"ah bi#ti ik usta!ha obtai#s the

 !olic" so that she is able to do i#vestme#t a#d also be !rotected i# case of hos!ital

admissio#%

P'-&,% ,( +# the eve#t of claim& com!a#" will i#vesti'ate whe# a#d how the eve#t

occurred% +# the eve#t of ik ur Ati"ah bi#ti ik usta!ha bei#' admitted i# the hos!ital

or i#volved i# a# accide#t or !assi#' awa" the ru- has to ide#tif" the cause a#d is it

covered u#der her !olic"%

P'8'%-',% '&8(,%-' Takaful o!erator will ide#tif" if !artici!a#t has obtai#ed

a#" other !olic"& to avoid a#" clashes o# claims%

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4.0 THE ELEMENTS OF CONTRACT

4.1 P*%-, BSN T,9,+ I;(%&% L-9 ;(( G,% E,(% L-+ I(,

I;(%&% -9 

+# each of the !roduct lies the eleme#t that differe#tiates betwee# +slamic a#d

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 !artici!a#ts are #ot likel" k#owi#' each other but b" the co#ce!t of tabarru; the 'ood

i#te#tio# betwee# other !artici!a#ts ma" be acce!ted as a reward i# the hereafter%

8

E&% T,9,+ I(,

Tabarru; es o

u" I ell o es

aram 8leme#t

• >iba;

• "sir 

• harar 

 o

 o

 o

es

es

es

Bakalah es o

ub(ect atter es es

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4.2 D-++ %

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5.1 GREAT EASTERN LIFE INSURANCE INVESTMENT LINK POLIC?

This !olic" is 'over#ed b" the *aws of ala"sia a#d the

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6.1 GREAT EASTERN LIFE INSURANCE INVESTMENT LINK POLIC?

As me#tio#ed above the !remium !a"able is > 173%25 mo#thl" mode% D#der clause K-10

asic +#vestme#t remium

The asic +#vestme#t remium will be a!!ortio#ed to the @u#ds as s!ecified b" clie#t i#

the !ro!osal for assura#ce or a#" other docume#t !rescribed a#d acce!ted b" reat 8aster#

for the !remium a!!ortio#me#t or alteratio# of !remium a!!ortio#me#t% +# the eve#t of 

#o#-!a"me#t of basic i#vestme#t !remium while this !olic" is i# force& reat 8aster# shall

deduct the !olic" fee a#d i#sura#ce char'es from the total i#vestme#t value%

olic" @ee

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The amou#t co#tributio# is >150%00 mo#thl"%

1. P,@&% O+ T'%, C'%-%-'

i The amou#t a#d fre)ue#c" of the Total

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c @or both rotectio# D#it Accou#t ,DA a#d +#vestme#t D#it Accou#t ,+DA

i% The deductio#s will co#ti#ue i# accorda#ce with ectio# 9 u#til the DA

a#d +DA fu#d bala#ce is #ot e#ou'h to bear further deductio#s% +f this

ha!!e#& the

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• 100? of the amou#t of be#efit is the *ife Assured is co#fi#ed i# a hos!ital room

a#d boardJ

• 200? of the Amou#t of e#efit if the *ife Assured is co#fi#ed i# a# +#te#sive 100 !er da"& sub(ect to .verall

A##ual *imit a#d:or .verall *ifetime

*imit of the asic edical la#&

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,ii Takaful com!a#" will !a" the Achieve@irst bo#us of >500 sub(ect to the

terms a#d co#ditio#sF

,a u" a house& or 

,b et married le'all"& or 

,c

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11

12

13

14

15

.r'a# Tra#s!la#t

Ambula#ce @ees

a" ur'er"

.ut!atie#t 50 !er da"& sub(ect to .verall A##ual

*imit a#d:or .verall *ifetime *imit&

whichever e/ceed first%

1K +#itial .verall A##ual *imit ,e/cludi#'

the cumulative Attachi#' A##ual *imit& if 

a#"

> 120&000

19 .verall *ifetime *imit > 1&200&000

20 Accide#tal eath e#efit > 15&000

D,%

The Takaful

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A-*%

 ot be !aid due to #atural cause%

.2 PRUDENTIAL BSN TAKAFUL INVESTMENT LINK POLIC?

D,%

This sectio# is a!!licable whe# eath be#efit is i#cluded i# asic e#efit or Additio#al

e#efit ,if a#"%

The Takaful

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the date below for heart attack& coro#ar" arter" heart disease re)uiri#' sur'er"& ca#cer or

other serious coro#ar" arter" heart diseaseF

a The comme#ceme#t date of this certificateJ or 

 b The date issue the related a##e/J or 

c The date of revivalJ or 

d The date of a# e#dorseme#tJ or 

e The comme#ceme#t date of the be#efitJ

A-*%

This sectio# is a!!licable whe# Accide#t be#efit is i#cluded i# asic e#efit or Additio#al

e#efit ,if a#"%

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".0 LAPSES

".1 GREAT EASTERN LIFE INSURANCE INVESTMENT LINK POLIC?

1% rotectio# D#it Accou#t ,DA

,i The basic be#efit a#d:or additio#al be#efits shall la!se a#d ceased to be i# force if F

,a There is i#sufficie#t u#its i# the DA to !a" for the tabarru; deductio# a#d

service char'e for basic be#efit a#d:or additio#al be#efits ,if a#"J a#d,b There are #o more D#its i# the +DA ,if a#" which ca# be used to !urchase

u#its i# DAJ a#d

,c ou did #ot !rovide a#" co#se#t to co#ti#ue to !a" for the tabrru; deductio# for 

additio#al be#efits ,if a#"%

,ii +#vestme#t D#it Accou#t , +DA

,a +f there is i#sufficie#t D#its i# the +DA& Takaful aver shall la!se a#d cease to

 be i# force%

".2 PRUDENTIAL BSN TAKAFUL INVESTMENT LINK POLIC?

1% rotectio# D#it Accou#t ,DA

,i The basic be#efit a#d:or additio#al be#efits shall la!se a#d ceased to be i# force if F

,a There is i#sufficie#t u#its i# the DA to !a" for the tabarru; deductio# a#d

service char'e for basic be#efit a#d:or additio#al be#efits ,if a#"J a#d

,b There are #o more D#its i# the +DA ,if a#" which ca# be used to !urchase

u#its i# DAJ a#d

,c ou did #ot !rovide a#" co#se#t to co#ti#ue to !a" for the tabrru; deductio# for 

additio#al be#efits ,if a#"%,ii +#vestme#t D#it Accou#t , +DA

,a +f there is i#sufficie#t D#its i# the +DA& Takaful aver shall la!se a#d cease to

 be i# force%

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10.0 INVESTMENT

10.1 GREAT EASTERN LIFE INSURANCE INVESTMENT LINK POLIC?

e!osited i# ba#k to ear# i#terest for the +#sura#ce

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11.0 DISTRIBUTION OF SURPLUS # INVESTMENT AND UNDER$RITING

SURPLUS

11.1 GREAT EASTERN LIFE INSURANCE INVESTMENT LINK POLIC?

This methodolo'" allows for a share of the accumulated !remiums !lus i#vestme#t

ear#i#'s to be retur#ed to the !olic"holder after allowi#' for deductio#s for cost of 

 !rovidi#' i#sura#ce covera'e& ac)uisitio#s costs a#d other e/!e#ses i#curred b" the i#surer%

11.2 PRUDENTIAL BSN TAKAFUL INVESTMENT LINK POLIC?

Takaful .!erator is e#titled to receive at least 50? of the distributable sur!lus ,if a#" o# a

"earl" basis% The bala#ce of u! to 50? is shared with us as a# i#ce#tive for ma#a'i#' the

Tabarru; @u#d% our !ortio# of the distributable sur!lus will be !laced back i#to "our 

rotectio# D#it Accou#t ,DA%

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12.0 CONCLUSION

oth i#sura#ce a#d Takaful !roducts aim to !rovide "ou with !rotectio# to "ourself& famil"&

vehicles& homes& valuables& com!a#" a#d more% The o#l" differe#ce is that Takaful

 !roducts a#d !la#s are 'uided b" the +slamic !ri#ci!les% owever& Takaful !roducts are

o!e# for !eo!le from all reli'io#s a#d are #ot solel" for uslims%

Bhether "ou choose to take a# i#sura#ce !la# or a Takaful& the most im!orta#t thi#' is that

"ou take u! a !rotectio# !la# that "ou are comfortable with suits "our curre#t a#d future

#eeds% oth have similarities a#d differe#ces that 'ive !rotectio# to societ"% The u#i)ue

features of Takaful !roducts that !romote tra#s!are#c"& fair#ess a#d !rofit shari#' should

a!!ealed to all% o that chooses the better o#e%

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13.0 REFERENCES/ APPENDI!

rude#tial Takaful erhad ,ru% ,#%d%% Prudential BSN Taaful Berhad

!PruBSN"% >etrieved Au'ust 5& 2014& from rude#tial Takaful erhad

,ru websiteF htt!sF::www%!rubs#%com%m":i#de/%!h!OmmPaboutQus

reat 8aster# *ife% ,#%d%% #reat $astern %ife% >etrieved Au'ust 5& 2014& from reat

8aster# *ife websiteF htt!F::www%'reateaster#life%com:m":e#:i#sura#ce:home%(s!