FSTEP TAKAFUL
Transcript of FSTEP TAKAFUL
-
8/12/2019 FSTEP TAKAFUL
1/68
TAKAFUL & CONVENTIONALTAKAFUL & CONVENTIONAL
INSURANCEINSURANCEA COMPARISONA COMPARISON
BASIC CONCEPTSBASIC CONCEPTS CONVENTIONALCONVENTIONAL Concepts of RisksConcepts of Risks
Risk ManagementRisk Management Insurable RisksInsurable Risks
Concepts of InsuranceConcepts of Insurance
Functions of InsuranceFunctions of Insurance
-
8/12/2019 FSTEP TAKAFUL
2/68
HEINRICHHEINRICH TRIANGLETRIANGLE
1
30
300
Major Injury
Minor Injury
Non-InjuryAccidents
-
8/12/2019 FSTEP TAKAFUL
3/68
RISK MANAGEMENTRISK MANAGEMENT
Risk Evaluation
Severity Frequency
Risk Control
PhysicalFinancial
RiskIdentification
Retention Transfer Elimination Minimisation
-
8/12/2019 FSTEP TAKAFUL
4/68
ISLAMIC PERSPECTIVE ONISLAMIC PERSPECTIVE ON
INSURANCEINSURANCE
Religious rulings and views on insuranceReligious rulings and views on insurance Islam as a way of lifeIslam as a way of life an ADDINan ADDIN
The study ofThe study of
ShariahShariah
AqeedahAqeedah
--FiqhFiqh
--AkhlaqAkhlaq
-
8/12/2019 FSTEP TAKAFUL
5/68
DIVISION OF SHARIAHDIVISION OF SHARIAH
Aqeedah Akhlak
EthicalValues
Fiqh
BeliefValues
OperationValues
IBADATMUAMALATMUNAKAHATJINAYATJIHADFARAID
-
8/12/2019 FSTEP TAKAFUL
6/68
MUAMALATMan to Man Activities
Risk Management
Insurance
PoliticalActivities
EconomicActivities
SocialActivities
-
8/12/2019 FSTEP TAKAFUL
7/68
FOUNDATION OF ISLAMICFOUNDATION OF ISLAMIC
INSURANCEINSURANCE
Historical perspectivesHistorical perspectivesAcceptability of insurance practiceAcceptability of insurance practice
Philosophical of Islamic insurancePhilosophical of Islamic insurance
Governing principles of TakafulGoverning principles of Takaful
-
8/12/2019 FSTEP TAKAFUL
8/68
COMPARISONCOMPARISON
CONVENTIONAL AND ISLAMICCONVENTIONAL AND ISLAMICINSURANCEINSURANCE
AlAl GhararGharar
AlAl MaisirMaisir
AlAl ---- RibaRiba
-
8/12/2019 FSTEP TAKAFUL
9/68
TYPESTYPES OF TAKAFUL CONTRACTSOF TAKAFUL CONTRACTS
Contribution by participants toContribution by participants to TabarruTabarru Managing of contribution by an OperatorManaging of contribution by an Operatorunder Alunder AlMudharabbahMudharabbah arrangementsarrangements
Appointment of an Intermediary byAppointment of an Intermediary byCompany or Participants under AlCompany or Participants under Al-- WakallaWakalla
arrangements.arrangements.
-
8/12/2019 FSTEP TAKAFUL
10/68
-
8/12/2019 FSTEP TAKAFUL
11/68
TAKAFUL OPERATIONSTAKAFUL OPERATIONS
Regulations and self regulationsRegulations and self regulations Takaful Act 1984Takaful Act 1984
Takaful RegulationsTakaful Regulations Supervision by BNMSupervision by BNM
as Director of Takafulas Director of Takaful
SyariahSyariah Supervisory BoardSupervisory Board
-
8/12/2019 FSTEP TAKAFUL
12/68
Takaful CompanyTakaful CompanyMalaysianMalaysian
PracticePractice
The Company Act 1965The Company Act 1965 Licensing issued by BNM under TakafulLicensing issued by BNM under TakafulAct 1984Act 1984
Types of Takaful business defined by theTypes of Takaful business defined by theActAct i.ei.e Family Solidarity Business andFamily Solidarity Business and
General TakafulGeneral Takaful
-
8/12/2019 FSTEP TAKAFUL
13/68
CONDUCT OF BUSINESSCONDUCT OF BUSINESS
ShariahShariahss ComplianceCompliance Contract Obligations as per IslamicContract Obligations as per Islamicperspectivesperspectives
Management of ContributionsManagement of Contributions
Surplus and profitsSurplus and profits
Takaful Business EnvironmentTakaful Business Environment
-
8/12/2019 FSTEP TAKAFUL
14/68
GLOBAL TAKAFUL INDUSTRYGLOBAL TAKAFUL INDUSTRY
OVERVIEWOVERVIEW
1%
9%
27%
63%
MALAYSIA
ASIA/PACIFIC
EUROPE/USA
GCC
2006 TOTAL TAKAFUL PREMIUMS
USD 1.7 BILLION= 60 Takaful Companiesin 30 countries
GROWING RATE= 15-20% P.A
-
8/12/2019 FSTEP TAKAFUL
15/68
G O SGLOBAL TAKAFUL INDUSTRY
-
8/12/2019 FSTEP TAKAFUL
16/68
GLOBAL TAKAFUL INDUSTRYGLOBAL TAKAFUL INDUSTRY
OVERVIEWOVERVIEW
2%
27%
31%
***EUROPE,TURKEY,CHINA & USA USD2.3bn
*GCC (KSA USD 900m,UAE USD480m & EGYPT USD 467m
**ASIA PACIFIC USD3.1bn(Malaysia/Indonesia USD1.4bn
2015 FORECAST
TOTAL TAKAFUL PREMIUMS USD7.4BILLION
-
8/12/2019 FSTEP TAKAFUL
17/68
TAKAFUL MODELSTAKAFUL MODELS
TAUWTAUW
WUNI orWUNI or
CorporativesCorporatives
WAKALLA or AgencyWAKALLA or Agency
TIJARI or PureTIJARI or Pure MudharrabahMudharrabah andandModifiedModified MudharrabahMudharrabah
MODEL CURRENTLY IN USE
-
8/12/2019 FSTEP TAKAFUL
18/68
MODEL CURRENTLY IN USEMODEL CURRENTLY IN USE
PURE COOPERATIVE MODEL
INVESTMENTPROFIT
CONTRIBUTION(PREMIUM)
PARTICIPANTSPECIAL
ACCOUNT
(COMMON)
PARTICIPANTSACCOUNT(PERSONAL)
INVESTMENTPROFIT
ACTUALMANAGEMENT
EXPENSESOPERATOR
UNDERWRITING
SURPLUS
POLICY BENEFITS
PARTICIPANT
100% 100%
-
8/12/2019 FSTEP TAKAFUL
19/68
MODELS CURRENTLY IN USE (MODELS CURRENTLY IN USE (contdcontd))
SYARIKAT TAKAFUL FAMILY MODEL - Mudharaba
INVESTMENTPROFIT
CONTRIBUTION(PREMIUM)
PARTICIPANTSPECIAL
ACCOUNT
(COMMON)
PARTICIPANTSACCOUNT(PERSONAL)
INVESTMENTPROFIT
ACTUALMANAGEMENT
EXPENSESOPERATOR
UNDERWRITING
SURPLUS
POLICY BENEFITS
PARTICIPANT
70%
100%
30%
( d)
-
8/12/2019 FSTEP TAKAFUL
20/68
MODELS CURRENTLY IN USE (MODELS CURRENTLY IN USE (contdcontd))
SYARIKAT TAKAFUL GROUP and GENERAL MODEL -Modified Mudharaba
INVESTMENTPROFIT
CONTRIBUTION(PREMIUM)
PARTICIPANTSPECIAL
ACCOUNT
(COMMON)
INVESTMENT
PROFIT
ACTUALMANAGEMENT
EXPENSESOPERATOR
UNDERWRITING
SURPLUS
POLICY BENEFITS
PARTICIPANT
50%
50%
50%
50%
(MODELS CURRENTLY IN USE ( dd))
-
8/12/2019 FSTEP TAKAFUL
21/68
MODELS CURRENTLY IN USE (MODELS CURRENTLY IN USE (contdcontd))
TAKAFUL NATIONAL FAMILY MODEL Modified Mudharaba
INVESTMENTPROFIT
CONTRIBUTION(PREMIUM)
PARTICIPANTSPECIAL
ACCOUNT
(COMMON)
PARTICIPANTSACCOUNT(PERSONAL)
INVESTMENTPROFIT
ACTUALMANAGEMENT
EXPENSESOPERATOR
UNDERWRITING
SURPLUS
POLICY BENEFITS
PARTICIPANT
80%
80%
20%20%
MODELS CURRENTLY IN USE (MODELS CURRENTLY IN USE ( dtd))
-
8/12/2019 FSTEP TAKAFUL
22/68
MODELS CURRENTLY IN USE (MODELS CURRENTLY IN USE (contdcontd))
TAKAFUL NATIONAL GROUP and GENERAL MODEL -Modified Mudharaba
INVESTMENTPROFIT
CONTRIBUTION(PREMIUM)
PARTICIPANTSPECIAL
ACCOUNT
(COMMON)
INVESTMENT
PROFIT
ACTUALMANAGEMENT
EXPENSESOPERATOR
UNDERWRITING
SURPLUS
POLICY BENEFITS
PARTICIPANT
50%
50%
50%
50%
MODELS CURRENTLY IN USE (MODELS CURRENTLY IN USE ( tdtd))
-
8/12/2019 FSTEP TAKAFUL
23/68
MODELS CURRENTLY IN USE (MODELS CURRENTLY IN USE (contdcontd))
WAKALA MODEL Agency / Cooperative
INVESTMENTPROFIT
CONTRIBUTION(PREMIUM)
PARTICIPANTSPECIAL
ACCOUNT
(COMMON)
PARTICIPANTSACCOUNT(PERSONAL)
INVESTMENTPROFIT
ACTUAL
MANAGEMENTEXPENSES
OPERATOR
UNDERWRITING
SURPLUS
POLICY BENEFITS
PARTICIPANT
100%
100%
MANAGEMENT
FEE
MODELS CURRENTLY IN USE (MODELS CURRENTLY IN USE ( tdtd))
-
8/12/2019 FSTEP TAKAFUL
24/68
MODELS CURRENTLY IN USE (MODELS CURRENTLY IN USE (contdcontd))
UNIT LINKED MODEL
INVESTMENTPROFIT
CONTRIBUTION(PREMIUM)
OPERATOR
POLICY BENEFITS
PARTICIPANT
100%
UNIT LINKEDFUND
UNIT LINKEDCHARGES
ACTUAL MANAGEMENTEXPENSES
Wh t T k f l M d l?What Takaful Model?
-
8/12/2019 FSTEP TAKAFUL
25/68
What Takaful Model?What Takaful Model?
- Takaful Ikhlas Wakalah model
INVESTMENTPROFIT
Participants Investment AccountOr PRIA or GRIA
OPERATOR
POLICY BENEFITS
PARTICIPANT
X%
Taawani Account pool-Expense Fund
-Risk Fund-Special Fund
Contribution (Premium)
INVESTMENTPROFIT
U/writingSurplus
100-Y%
Y%
Wakalah Fee
Monthly Drips
Management FeeInvestment Fee
Tabaruat
-
8/12/2019 FSTEP TAKAFUL
26/68
MARKETING ISSUES OFMARKETING ISSUES OF
INTERMEDIARYINTERMEDIARY
Appointment of AgentsAppointment of Agents
Appointment of Brokers as per Section 36Appointment of Brokers as per Section 36(1) Takaful Act 1984(1) Takaful Act 1984
Remunerations of intermediaryRemunerations of intermediarysourcessourcesof fundof fund
-
8/12/2019 FSTEP TAKAFUL
27/68
BUSINESS PROCESSESBUSINESS PROCESSES
Selection of RisksSelection of Risks
Completion of proposal formCompletion of proposal form
UnderwritingUnderwriting
Issuance of Takaful CertificateIssuance of Takaful Certificate
Takaful ContributionTakaful Contribution
Claims ProcedureClaims Procedure
Takaful PrinciplesTakaful Principles
-
8/12/2019 FSTEP TAKAFUL
28/68
HISTORICAL DEVELOPMENTHISTORICAL DEVELOPMENT Malaysian HistoryMalaysian History
VissionsVissions and Objectivesand Objectives
BNMBNMS RecommendationsS Recommendations
Implementation of Master Plan for IslamicImplementation of Master Plan for IslamicBanking and TakafulBanking and Takaful
TAKAFUL TERMINOLOGIES ASTAKAFUL TERMINOLOGIES AS
-
8/12/2019 FSTEP TAKAFUL
29/68
TAKAFUL TERMINOLOGIES ASTAKAFUL TERMINOLOGIES AS
COMPARED TOCOMPARED TOCONVENTIONALCONVENTIONAL TakafulTakaful
MudharabbahMudharabbah MudharibMudharib TabarukTabaruk
WakallaWakalla TawTawwunniwunni TawTawwunnwunn PurePure MudharrabbahMudharrabbah ModifiedModified MudharabbahMudharabbah TijariTijari SahabSahab--maalmaal
ShariahShariah
-
8/12/2019 FSTEP TAKAFUL
30/68
TAKAFUL TerminologiesTAKAFUL Terminologies -- contcont AqadAqad IjabIjab
QabulQabul AqeedahAqeedah
AkhlaqAkhlaq
MuammalatMuammalat MunnakahatMunnakahat JinnayatJinnayat
FaraFaraidid The Holy QuranThe Holy Quran AlAlSunnahSunnah/ Al/ Al HadithHadith
-
8/12/2019 FSTEP TAKAFUL
31/68
TAKAFUL TerminologiesTAKAFUL Terminologies --contcont ItjmaItjmass
UlamaksUlamaks FatwaFatwa Fatwa CouncilFatwa Council
FardhuFardhuAinAin FardhuFardhu KiffayahKiffayah FiqhFiqh FardhuFardhu oror WajibWajib SabrSabr SodaqahSodaqah BarakahBarakah
-
8/12/2019 FSTEP TAKAFUL
32/68
TAKAFUL TerminologiesTAKAFUL Terminologies --contcont MandubMandub oror SunnatSunnat
JaizJaiz oror HarusHarus MakruhMakruh HaramHaram
HalalHalal SahihSahih FasidFasid BatilBatil QadhaQadha QadharQadhar DharurratDharurrat
-
8/12/2019 FSTEP TAKAFUL
33/68
TAKAFULTAKAFUL i t i l ii t i l i
-
8/12/2019 FSTEP TAKAFUL
34/68
TAKAFULTAKAFUL-- insurance terminologiesinsurance terminologies
--contcont
MudharabbahMudharabbah
TabarrukTabarruk
ShariahShariah ComplianceCompliance
Co TakafulCo Takaful Re TakafulRe Takaful
BancaBanca TakafulTakaful AqadAqad
MTAMTA
Th M l i T k f l I d tTh M l i T k f l I d t
-
8/12/2019 FSTEP TAKAFUL
35/68
The Malaysian Takaful IndustryThe Malaysian Takaful Industry
OperatorsOperators
Investors/Investors/
shareholdersshareholders
GovernmentGovernment
/regulator/regulator
ProductsProducts
--Sole composite operatorSole composite operatorwith RM10 million capital.with RM10 million capital.
--An Islamic bank and stateAn Islamic bank and state
religious councils andreligious councils and
foundations.foundations.
--Setting the foundation forSetting the foundation for
the instruction ofthe instruction of takafultakaful byby
providing basic regulation.providing basic regulation.
--Limited products mainlyLimited products mainly
confined to motor, fire andconfined to motor, fire and
mortgagemortgage takafultakaful..
--Five composite operatorsFive composite operatorswith minimum capital ofwith minimum capital of
RM100 million each.RM100 million each.
--Broad range of investorsBroad range of investorscomprising privatecomprising private
investors, banking groups,investors, banking groups,
insurers, and ainsurers, and a reinsurerreinsurer..
--Providing enablingProviding enabling
environment for theenvironment for the
development industry anddevelopment industry and
setting strategic direction insetting strategic direction inthe medium and longthe medium and long--term.term.
--Broad range of product mixBroad range of product mix
withwith sophiticatedsophiticated features.features.
19841984 20052005
CustomersCustomers --Mainly MuslimsMainly Muslims Muslims and nonMuslims and non MuslimsMuslims
-
8/12/2019 FSTEP TAKAFUL
36/68
CustomersCustomers
DistributionDistribution
channelschannels
InvestmentInvestment
avenuesavenues
--Mainly Muslims.Mainly Muslims.
--Branches and marketingBranches and marketingofficers.officers.
--Confined to IslamicConfined to Islamicdeposits and Governmentdeposits and GovernmentIslamic securities.Islamic securities.
--Muslims and nonMuslims and non--MuslimsMuslims
withdifferentwithdifferent expectations,expectations,
preferences and demands.preferences and demands.
--Branches, marketingBranches, marketing
officers, agency, force,officers, agency, force,
bancatakafulbancatakaful, brokers,, brokers,internet and strategicinternet and strategic
alliances.alliances.
--Wider range ofWider range of
investmentinstrumentsinvestmentinstruments
issued by the Governmentissued by the Government
and the private sectors.and the private sectors.
-
8/12/2019 FSTEP TAKAFUL
37/68
FUNDAMENTALS OFFUNDAMENTALS OF
CORPORATE RISK SCORECARDCORPORATE RISK SCORECARDMISSION
VISION
GOALS & STRATEGICOBJECTIVES
CORPORATE GOVERNANCE
FINANCIAL
CUSTOMERProducts & Services / Suppliers
OPERATIONAL HUMAN CAPITAL
EXTERNALEXTERNAL
REGULATORYREGULATORY
LEGALLEGAL
EXTERNALEXTERNAL
REGULATORYREGULATORY
LEGALLEGAL
PRESENTATION OF RELATIONSHIP CHAIN IN APRESENTATION OF RELATIONSHIP CHAIN IN A
-
8/12/2019 FSTEP TAKAFUL
38/68
PARTICIPANTSPARTICIPANTS
ANN GENERALANN GENERAL
MEETINGMEETING
BOARD MEMBERSBOARD MEMBERSAUDIT COMMITEEAUDIT COMMITEE
SYARIAH SUPERVISIORY BOARDSYARIAH SUPERVISIORY BOARD
CONSUMERSCONSUMERS
LEGAL SUPERVISIORYLEGAL SUPERVISIORY
AUTHORITYAUTHORITY
APPROVEDAPPROVED
ACTUARYACTUARY
PRESENTATION OF RELATIONSHIP CHAIN IN APRESENTATION OF RELATIONSHIP CHAIN IN A
TAKAFUL OPERATIONS ENVIRONMENTSTAKAFUL OPERATIONS ENVIRONMENTS
COMMON MISCONCEPTIONSCOMMON MISCONCEPTIONS
-
8/12/2019 FSTEP TAKAFUL
39/68
COMMON MISCONCEPTIONSCOMMON MISCONCEPTIONS
ON TAKAFULON TAKAFUL
Risk Protection (insurance ) is againstRisk Protection (insurance ) is against TawkkulTawkkulieie total dependence upon Allah (total dependence upon Allah (swtswt ))
All Risk Protection (insurance ) isAll Risk Protection (insurance ) is HaramHaramprohibitedprohibited
All Insurance is a form of Gambling orAll Insurance is a form of Gambling orWagering , which is forbidden in IslamWagering , which is forbidden in Islam
All Insurance seeks toAll Insurance seeks to maximisemaximise profits whichprofits whichtakes benefits away from Policyholderstakes benefits away from Policyholders
COMMON MISCONCEPTIONSCOMMON MISCONCEPTIONS
-
8/12/2019 FSTEP TAKAFUL
40/68
COMMON MISCONCEPTIONSCOMMON MISCONCEPTIONS--
contcont5. All Takaful operators are the same5. All Takaful operators are the same
6. I do not need Takaful6. I do not need Takaful
TAKAFUL MODEL (MalaysianTAKAFUL MODEL (Malaysian
-
8/12/2019 FSTEP TAKAFUL
41/68
TAKAFUL MODEL (MalaysianTAKAFUL MODEL (Malaysian
Practice)Practice)
Takaful MalaysiaTakaful Malaysia
TakafulTakaful NasionalNasional
MaybanMayban TakafulTakaful
TakafulTakaful IkhlasIkhlas
-
8/12/2019 FSTEP TAKAFUL
42/68
Corporate InformationCorporate InformationSyarikat TakafulSyarikat Takaful
MalaysiaMalaysia BerhadBerhad
FY endedFY ended30.06.200430.06.2004
TakafulTakaful NasionalNasional
Sdn BhdSdn Bhd
FY endedFY ended31.03.200531.03.2005
MaybanMayban TakafulTakaful
BerhadBerhad
FY endedFY ended30.06.200430.06.2004
TakafulTakaful IkhlasIkhlas SdnSdn
BhdBhd
29 Nov 198429 Nov 1984 7 June 19937 June 1993 31 Dec 200131 Dec 2001 18 Sept 200218 Sept 2002
IncorporationIncorporation Started operationStarted operationon 1 July 2002on 1 July 2002 Started operationStarted operationon 2 July 2003on 2 July 2003
Listed on KLSEListed on KLSE
since 31 July 1996since 31 July 1996A subsidiary ofA subsidiary of
MalaysianMalaysian
NationalNational
Insurance (MNI)Insurance (MNI)
A whollyA wholly--ownedowned
subsidiary ofsubsidiary of
MaybanMayban FortisFortis
HoldingsHoldings BerhadBerhad
A subsidiary ofA subsidiary of
Malaysia NationalMalaysia National
Reinsurance BhdReinsurance Bhd
Authorized CapitalAuthorized Capital RM 500,000,000.00RM 500,000,000.00 RM 500,000,000.00RM 500,000,000.00 RM 35,000,000.00RM 35,000,000.00 RM 100,000,000.00RM 100,000,000.00
PaidPaid--up Capitalup Capital RM 143,000,000.00RM 143,000,000.00 RM 100,000,000.00RM 100,000,000.00 RM 35,000,000.00RM 35,000,000.00 RM 100,000,000.00RM 100,000,000.00
Total Net AssetTotal Net Asset RM 2,091,939,233.00RM 2,091,939,233.00 RM 2,475,779,000.00RM 2,475,779,000.00 RM 82,680,538.00RM 82,680,538.00 RM 78 million (unRM 78 million (un
audited)audited)
-
8/12/2019 FSTEP TAKAFUL
43/68
-
8/12/2019 FSTEP TAKAFUL
44/68
Elements of Takaful ModelElements of Takaful Model
Cooperative riskCooperative risk--sharing for protection amongstsharing for protection amongst
participantsparticipants Clear segregation of roles for participants and operatorsClear segregation of roles for participants and operators IncorporatesIncorporates tabarrutabarru concept to eliminateconcept to eliminate gharargharar
AvoidsAvoids ribariba andand maisirmaisir All transactional aspects; i.e. investment, etc; are inAll transactional aspects; i.e. investment, etc; are incompliance tocompliance to ShariahShariah LawLaw
Appointment ofAppointment of ShariahShariahAdvisory Council as advisorsAdvisory Council as advisors
-
8/12/2019 FSTEP TAKAFUL
45/68
FAMILY TAKAFUL MODELFAMILY TAKAFUL MODEL
Family Takaful Model (LifeFamily Takaful Model (Life
-
8/12/2019 FSTEP TAKAFUL
46/68
Family Takaful Model (LifeFamily Takaful Model (Life
Insurance)Insurance) Takaful MalaysiaTakaful Malaysia
Companys Administration &
Management Expenses
Profits Attributable
to Shareholders
Profit fromInvestment
Investmentby Company
Tak
afulContributio
n
Fam
ilyTakafulFun
d
ParticipantsAccount
Participants
SpecialAccount
ParticipantsAccount
Participants
SpecialAccount
ParticipantsAccount
Takaful
Benefit
Payment toParticipant
Payment to
Participant
Com
pany
Takaful Contract based onPrinciple of Al-Mudharabah
P
articipant
30%
70%
Family Takaful Model (LifeFamily Takaful Model (Life
-
8/12/2019 FSTEP TAKAFUL
47/68
Family Takaful Model (LifeFamily Takaful Model (Life
Insurance)Insurance) Takaful MalaysiaTakaful Malaysia Participant paysParticipant pays takafultakaful installments to STMB for taking up theinstallments to STMB for taking up the
Family PlanFamily Plan
The installments are credited to the Family Takaful Fund:The installments are credited to the Family Takaful Fund: ParticipantParticipants Account (PA) for saving and investment purposess Account (PA) for saving and investment purposes
PartcipantsPartcipantsss Special Account (PSA) asSpecial Account (PSA) as tabarrutabarru
The contribution is invested in a manner deemed fit by the STMBThe contribution is invested in a manner deemed fit by the STMB inin
compliance tocompliance to ShariahShariah Profit from investment is subjected to profitProfit from investment is subjected to profit--sharing under thesharing under the
mudharabahmudharabah contract between the participant and STMB:contract between the participant and STMB: The sharing is at the gross profit before deducting the CompanyThe sharing is at the gross profit before deducting the Companyss
management expensesmanagement expenses
Sharing ratio of 70:30 for participants and company respectivelySharing ratio of 70:30 for participants and company respectively
Commission and management expenses is borne by STMB from itsCommission and management expenses is borne by STMB from itsshare of investment profitshare of investment profit
Income to the Shareholders would be the surplus of investmentIncome to the Shareholders would be the surplus of investment
profit after deducting all expensesprofit after deducting all expenses
Family Takaful Model (LifeFamily Takaful Model (Life
-
8/12/2019 FSTEP TAKAFUL
48/68
Family Takaful Model (LifeFamily Takaful Model (Life
Insurance)Insurance) Takaful MalaysiaTakaful MalaysiaContributionContribution 100,000.00100,000.00
InvestmentInvestment 8,000.008,000.00 Contribution isContribution is
invested with 8%invested with 8%returnsreturns
(8% returns)(8% returns)
PSA (10%)PSA (10%) PA (90%)PA (90%) TAKAFUL MALAYSIATAKAFUL MALAYSIA
10,000.0010,000.00 90,000.0090,000.00
Allocation of returnsAllocation of returns5,600.005,600.00
2,400.002,400.00 Investment returns isInvestment returns is
shared at 70:30 ratioshared at 70:30 ratio
560.00560.00 5,040.005,040.00 ParticipantParticipants share ofs share of
investment returns isinvestment returns is
split 10:90 forsplit 10:90 for
PSA:PAPSA:PA
Total fundTotal fund 10,560.0010,560.00 95,040.0095,040.00 2,400.002,400.00
Mgmt ExpensesMgmt ExpensesThe ME &The ME &Commission areCommission are
chargedcharged STMBSTMBss
portion of incomeportion of income
UnderwritingUnderwriting (8,000.00)(8,000.00) (10,000.00)(10,000.00)
CommissionCommission
(15,000.00)(15,000.00)
SurplusSurplus 2,560.002,560.00 95,040.0095,040.00 (17,600.00)(17,600.00)
97,600.0097,600.00 (17,600.00)(17,600.00)
Family Takaful Model (LifeFamily Takaful Model (Life
-
8/12/2019 FSTEP TAKAFUL
49/68
Family Takaful Model (LifeFamily Takaful Model (Life
Insurance)Insurance) TakafulTakaful NasionalNasionalParticipantsContributions
ParticipantsAccount
ParticipantsSpecial Acc
ManagementExpenses
Risk Fund Commission
Investment
Participant Shareholders
Investment
Participant Shareholders
80% 20% 80% 20%
Family Takaful Model (LifeFamily Takaful Model (Life
-
8/12/2019 FSTEP TAKAFUL
50/68
Family Takaful Model (LifeFamily Takaful Model (Life
Insurance)Insurance) TakafulTakaful NasionalNasional Participant paysParticipant pays takafultakaful contributions to TNSB for taking up thecontributions to TNSB for taking up the
Family PlanFamily Plan
The contribution is credited to the Family Takaful Fund:The contribution is credited to the Family Takaful Fund: ParticipantParticipants Account (PA) for savings and investment purposes Account (PA) for savings and investment purpose
ParticipantParticipants Special Account (PSA) ass Special Account (PSA) as tabarrutabarru
The contribution is invested in a manner deemed fit by the TNSBThe contribution is invested in a manner deemed fit by the TNSB inin
compliance tocompliance to ShariahShariah Profit from investment is put back into ParticipantProfit from investment is put back into Participants PA & PSA ats PA & PSA at
70:30 ratio respectively70:30 ratio respectively
The investment profit in PA is shared between Participant & TNSBThe investment profit in PA is shared between Participant & TNSB atat
70:30 ratio respectively70:30 ratio respectively
Commission & management expenses is charged to the PSACommission & management expenses is charged to the PSA The surplus in PSA is shared between Participants & TNSB at 80:2The surplus in PSA is shared between Participants & TNSB at 80:200
ratio respectivelyratio respectively
Income to Shareholders would beIncome to Shareholders would be TNSBTNSBss share of investment profitshare of investment profitin PA and share of surplus in PSA after deducting all expensesin PA and share of surplus in PSA after deducting all expenses
Family Takaful Model (LifeFamily Takaful Model (Life
-
8/12/2019 FSTEP TAKAFUL
51/68
Family Takaful Model (LifeFamily Takaful Model (Life
Insurance)Insurance) TakafulTakaful NasionalNasionalContributionContribution 100,000.00100,000.00
Investment (8%Investment (8% retunsretuns)) 8,000.008,000.00 Contribution isContribution is
invested with 8%invested with 8%
returnsreturnsPSA (70%)PSA (70%) PA (30%)PA (30%) TakafulTakaful NasionalNasional
70,000.0070,000.00 30,000.0030,000.00
Allocation of returnsAllocation of returns 5,600.005,600.00 2,400.002,400.00 Investment returns isInvestment returns is
put back intoput back into
ParticipantParticipants PSA &s PSA &
PA at 70:30 ratioPA at 70:30 ratio
1,920.001,920.00 480.00480.00
Total fundTotal fund 75,600.0075,600.00 The amount in PA isThe amount in PA is
split on 80:20 ratiosplit on 80:20 ratio
between Participantbetween Participant
& TN& TN
UnderwritingUnderwriting (8,000.00)(8,000.00)
Mgmt ExpensesMgmt Expenses (10,000.00)(10,000.00)
CommissionCommission (15,000.00)(15,000.00)
SurplusSurplus 42,600.0042,600.00 31,920.0031,920.00
The surplus in PSA isThe surplus in PSA issplit at 80:20 ratiosplit at 80:20 ratio
between Participantbetween Participant
& TN& TN
34,080.0034,080.00 8,520.008,520.00
66,000.0066,000.00 9,000.009,000.00
Family Takaful Model (LifeFamily Takaful Model (Life
-
8/12/2019 FSTEP TAKAFUL
52/68
Family Takaful Model (LifeFamily Takaful Model (Life
Insurance)Insurance) TakafulTakaful IkhlasIkhlasParticipantsContribution
IKHLAS
Personal
InvestmentAccount (PIA)
Personal Risk
Investment Account(PRIA)
Taawuni AccountPool (TAP)
Profit(if any)
Surplus
(if any)
Profit(if any)
InvestmentFunds
InvestmentFunds
Ikhlas will charge a surplusadmin fee
Risk & Investment Only Products Risk Only Products
Front-end Front-end
BalanceBalance
Ikhlas will charge a performance fee Ikhlas will charge a performance fee
Family Takaful Model (LifeFamily Takaful Model (Life
-
8/12/2019 FSTEP TAKAFUL
53/68
Family Takaful Model (LifeFamily Takaful Model (Life
Insurance)Insurance) TakafulTakaful IkhlasIkhlas All contributions paid by Participants shall be allocated to PerAll contributions paid by Participants shall be allocated to Personal Risksonal Risk
Investment Account (PRIA) and Personal Investment Account (PIA)Investment Account (PRIA) and Personal Investment Account (PIA) at aat a
ratio based on the various products offeredratio based on the various products offered PRIA Account is for protection whilst PIA is for protection & inPRIA Account is for protection whilst PIA is for protection & investmentvestment TISB charges 20%TISB charges 20% WakalahWakalah Fee for managing the Family Fund (% chargedFee for managing the Family Fund (% charged
varied for different products)varied for different products)
Part of the contributions in PRIA & PIA is put into TAP that hasPart of the contributions in PRIA & PIA is put into TAP that has frontfront--&&--backback--end charges as allocations for benefits/reserves, claims, servicend charges as allocations for benefits/reserves, claims, servicing,ing,management expenses & commission (Expense Fund, Risk Fund & Specmanagement expenses & commission (Expense Fund, Risk Fund & SpecialialFund)Fund)
Any surplus in TAP is put back into respective PRIA & PIAAny surplus in TAP is put back into respective PRIA & PIA TISB charges a 10% Surplus Administration Fee for this activityTISB charges a 10% Surplus Administration Fee for this activity
The balance is put back into PRIA & PIA respectivelyThe balance is put back into PRIA & PIA respectively Profit received from investment activities is returned to PRIA &Profit received from investment activities is returned to PRIA & PIA afterPIA after
deducting Investment Performance Fee of 10%deducting Investment Performance Fee of 10%
The net surplus shall be shared at a ratio of 50:50 or better beThe net surplus shall be shared at a ratio of 50:50 or better betweentweenParticipant and TISBParticipant and TISB
Family Takaful Model (LifeFamily Takaful Model (Life
-
8/12/2019 FSTEP TAKAFUL
54/68
Family Takaful Model (Lifey (
Insurance)Insurance) TakafulTakaful IkhlasIkhlasContributionContribution 100,000.00100,000.00Investment (8% returns)Investment (8% returns) 8,000.008,000.00
7,200.007,200.00 800.00800.00 Contribution is investedContribution is invested
with 8% returnswith 8% returnsParticipantParticipants shares share 10% Performance Fee10% Performance Fee
PIA (10%)PIA (10%) PRIA (90%)PRIA (90%) TAKAFUL IKHLASTAKAFUL IKHLAS
WakalahWakalah feefee 20,000.0020,000.00 20%20% WakalahWakalah Fee isFee is
charged to participantcharged to participantss
contriutioncontriutionNet contribution afterNet contribution after
wakalahwakalah80,000.0080,000.00
8,000.008,000.00 72,000.0072,000.00 10% Performance Fee10% Performance Fee
Allocation of investmentAllocation of investment
returnreturn7,200.007,200.00 800.00800.00 10% Performance Fee is10% Performance Fee is
charged at profit receivedcharged at profit received
from investment activityfrom investment activity720.00720.00 6,480.006,480.00
Gross surplusGross surplus 8,720.008,720.00 78,480.0078,480.00 20,800.0020,800.00
UnderwritingUnderwriting
(8,000.00)(8,000.00)
Mgmt ExpensesMgmt Expenses
(10,000.00)(10,000.00)
CommissionCommission
(15,000.00)(15,000.00)
SurplusSurplus 8,720.008,720.00 45,480.0045,480.00
54,200.0054,200.00 10% Surplus Admin Fee10% Surplus Admin Fee
5,420.005,420.00 10% Surplus Admin Fee is10% Surplus Admin Fee is
charged on the activitycharged on the activity
27,100.0027,100.00 27,100.0027,100.00 The surplus is sharedThe surplus is shared
between participant &between participant &
TISB at 50:50 ratioTISB at 50:50 ratio2,710.002,710.00 24,390.0024,390.00
27,100.0027,100.00 53,320.0053,320.00
-
8/12/2019 FSTEP TAKAFUL
55/68
GENERAL TAKAFUL MODELGENERAL TAKAFUL MODEL
General Takaful ModelGeneral Takaful Model TakafulTakaful
-
8/12/2019 FSTEP TAKAFUL
56/68
MalaysiaMalaysia
Companys Administration &Management Expenses
Profits Attributableto Shareholders
Profit fromInvestment
Investmentby Company
TakafulInstallments
Paid byParticipants
Com
pany
Takaful Contract based on
Principle of Al-Mudharabah
Participant
GeneralTakafulFund
GeneralTakafulFund
OperationalCost ofTakaful
Surplus(Profit)
Share ofSurplus for
theParticipants
Share of Surplus
for the Company
50%
50%
General Takaful ModelGeneral Takaful Model TakafulTakaful
-
8/12/2019 FSTEP TAKAFUL
57/68
MalaysiaMalaysia Participants payParticipants pay takafultakaful installment to STMB for taking up theinstallment to STMB for taking up the
General PlanGeneral Plan
The installments is credited to the General Takaful Fund asThe installments is credited to the General Takaful Fund as tabarrutabarruin the Participantin the Participants Special Account (PSA)s Special Account (PSA)
The contribution is invested in a manner deemed fit by the STMBThe contribution is invested in a manner deemed fit by the STMB inincompliance tocompliance to ShariahShariah
The profit from investment is put back into the FundThe profit from investment is put back into the Fund The surplus is subjected to profitThe surplus is subjected to profit--sharing under thesharing under the mudharabahmudharabahcontract between the participant and STMB:contract between the participant and STMB: Sharing ratio of 50:50 for participants and company respectivelySharing ratio of 50:50 for participants and company respectively
Commission & management expenses is borne by STMB from itsCommission & management expenses is borne by STMB from itsshare of the surplusshare of the surplus Income to the Shareholders would be the surplus of investmentIncome to the Shareholders would be the surplus of investment
profit after deducting all expensesprofit after deducting all expenses
General Takaful ModelGeneral Takaful Model TakafulTakaful
-
8/12/2019 FSTEP TAKAFUL
58/68
MalaysiaMalaysiaPSAPSA TAKAFUL MALAYSIATAKAFUL MALAYSIA
ContributionContribution 100,000.00100,000.00
Investment (8% returns)Investment (8% returns) 8,000.008,000.00 Contribution is investedContribution is invested
with 8% returnswith 8% returnsTotal fundTotal fund 108,000.00108,000.00
UnderwritingUnderwriting (65,000.00)(65,000.00)
SurplusSurplus 43,000.0043,000.00
21,500.0021,500.00 21,500.0021,500.00 The surplus is sharedThe surplus is shared
betweenbetween
Participant:STMBParticipant:STMB atat
50:50 ratio50:50 ratio
Mgmt ExpensesMgmt Expenses
(10,000.00)(10,000.00)
CommissionCommission
(10,000.00)(10,000.00)
21,500.0021,500.00 1,500.001,500.00
General Takaful ModelGeneral Takaful Model TakafulTakaful
-
8/12/2019 FSTEP TAKAFUL
59/68
NasionalNasionalParticipantsContributions
Takaful Fund
Management
Expenses Risk Fund Commission
Surplus
Participant Shareholders
50% 50%
Investment
General Takaful ModelGeneral Takaful Model TakafulTakaful
-
8/12/2019 FSTEP TAKAFUL
60/68
NasionalNasional Participants payParticipants pay takafultakaful installments to TNSB for takinginstallments to TNSB for taking
up the General Planup the General Plan
The installments is credited to the General Takaful FundThe installments is credited to the General Takaful Fundasas tabarrutabarru in the Participantin the Participants Special Account (PSA)s Special Account (PSA)
The contribution is invested in a manner deemed fit byThe contribution is invested in a manner deemed fit by
the TNSB in compliance withthe TNSB in compliance with ShariahShariah The profit from investment is put back into the FundThe profit from investment is put back into the Fund Commission & management expenses is borne by PSACommission & management expenses is borne by PSA The surplus is subjected to profitThe surplus is subjected to profit--sharing under thesharing under the
mudharabahmudharabah contract between the participant andcontract between the participant andSTMB:STMB: Sharing ratio of 50:50 for participants and company respectivelySharing ratio of 50:50 for participants and company respectively
Income to the Shareholders would beIncome to the Shareholders would be TNSBTNSBss share ofshare ofthe surplusthe surplus
General Takaful ModelGeneral Takaful Model MaybanMayban
-
8/12/2019 FSTEP TAKAFUL
61/68
TakafulTakaful Participant
TakafulContribution
Commission
to Agent
GeneralTakafulFund
Wakalah Fee
(20% ofcontribution)
Management
Expenses
Investment
Surplus
Allowedexpenses:Underwriting
Claim reserves& provisionsReserves
Less:
20% share of surplus
80% as performance fee
General Takaful ModelGeneral Takaful Model MaybanMayban
-
8/12/2019 FSTEP TAKAFUL
62/68
TakafulTakaful Participants pay contribution for taking upParticipants pay contribution for taking up MTSMTSss General productGeneral product The contribution forms aThe contribution forms a tabarrutabarru in the General Fundin the General Fund MTB charges 20%MTB charges 20% WakalahWakalah Fee for managing the FundFee for managing the Fund The Fund is invested in accordance toThe Fund is invested in accordance to SyariahSyariah principleprinciple Proceeds from investment is put back into the FundProceeds from investment is put back into the Fund MTB bears the cost for management expenses & commissionMTB bears the cost for management expenses & commission Underwriting is charged to theUnderwriting is charged to the tabarrutabarru accountaccount The surplus after deduction for Underwriting is shared at 20:80The surplus after deduction for Underwriting is shared at 20:80 ratioratio
between participants & MTB respectivelybetween participants & MTB respectively
The 20% share of the surplus attributable to participants will bThe 20% share of the surplus attributable to participants will beereturned to the Fundreturned to the Fund
In the event of insufficient amount in the Fund to meet itsIn the event of insufficient amount in the Fund to meet itsobligation, MTB provides interestobligation, MTB provides interest--free loan to be refree loan to be re--paid by thepaid by theFund from future surplusesFund from future surpluses
General TakafulGeneral Takaful TakafulTakaful NasionalNasional
-
8/12/2019 FSTEP TAKAFUL
63/68
General TakafulGeneral Takaful TakafulTakaful NasionalNasional
PSAPSA TakafulTakaful NasionalNasional
ContributionContribution 100,000.00100,000.00 Contribution is investedContribution is invested
with 8% returnswith 8% returnsInvestment (8% returns)Investment (8% returns) 8,000.008,000.00
Surplus after investmentSurplus after investment 108,000.00108,000.00
CommissionCommission (10,000.00)(10,000.00)
Mgmt ExpensesMgmt Expenses (10,000.00)(10,000.00)
UnderwritingUnderwriting (65,000.00)(65,000.00)
Net SurplusNet Surplus 23,000.0023,000.00
11,500.0011,500.00 11,500.0011,500.00 The surplus in PSA isThe surplus in PSA is
split at 50:50 ratiosplit at 50:50 ratio
between Participant &between Participant &
TNTN
11,500.0011,500.00 11,500.0011,500.00
General TakafulGeneral Takaful MaybanMayban TakafulTakaful
-
8/12/2019 FSTEP TAKAFUL
64/68
General TakafulGeneral Takaful MaybanMayban TakafulTakafulContributionContribution 100,000.00100,000.00
Invested with 8% returnsInvested with 8% returns 8,000.008,000.00 Contribution is investedContribution is invested
with 8% returnswith 8% returnsPSAPSA MaybanMayban TakafulTakaful
WakalahWakalah FeeFee 20,000.0020,000.00 WakalahWakalah fee is chargedfee is chargedat 20% fromat 20% from
contributioncontributionBalance afterBalance after wakalahwakalah chargecharge 80,000.0080,000.00
InvestmentInvestment 8,000.008,000.00
Surplus after investmentSurplus after investment 88,000.0088,000.00 Mgmt ExpensesMgmt Expenses
UnderwritingUnderwriting (65,000.00)(65,000.00) (10,000.00)(10,000.00)CommissionCommission
(10,000.00)(10,000.00)
SurplusSurplus 23,000.0023,000.00
4,600.004,600.00 18,400.0018,400.00 The surplus would beThe surplus would be
split at 20:80 rationsplit at 20:80 ration
between Participant &between Participant &
MTBMTB
4,600.004,600.00 18,400.0018,400.00
General Takaful ModelGeneral Takaful Model TakafulTakaful
-
8/12/2019 FSTEP TAKAFUL
65/68
IkhlasIkhlasParticipantsContribution
IKHLAS
General Risk
InvestmentAccount (GRIA)
Taawuni Account Pool(TAP)
Profit(if any)
Profit(if any)
InvestmentFunds
Front-end charges
Balance
Ikhlas will charge a performance fee Ikhlas will charge a surplus admin fee
General Takaful ModelGeneral Takaful Model TakafulTakaful
-
8/12/2019 FSTEP TAKAFUL
66/68
IkhlasIkhlas All contributions paid by Participants is put back into GeneralAll contributions paid by Participants is put back into General RiskRisk
Investment Account (GRIA)Investment Account (GRIA)
TISB charges 20%TISB charges 20% WakalahWakalah Fee for managing the General FundFee for managing the General Fund Part of the contributions in GRIA is put into TAP that has frontPart of the contributions in GRIA is put into TAP that has front--&&--
backback--end charges as allocations for benefits/reserves, claims,end charges as allocations for benefits/reserves, claims,servicing, management expenses & commission (Expense Fund, Riskservicing, management expenses & commission (Expense Fund, Risk
Fund & Special Fund)Fund & Special Fund)
Any surpluses in TAP is put back into GRIAAny surpluses in TAP is put back into GRIA TISB charges a 10% Surplus Administration Fee for this activityTISB charges a 10% Surplus Administration Fee for this activity The balance is put back into GRIAThe balance is put back into GRIA
Profit received from investment activities is returned to GRIA aProfit received from investment activities is returned to GRIA afterfterdeducting Investment Performance Fee of 10%deducting Investment Performance Fee of 10% The net surplus shall be shared at a ratio of 70:30 or betterThe net surplus shall be shared at a ratio of 70:30 or better
between Participant and TISBbetween Participant and TISB
-
8/12/2019 FSTEP TAKAFUL
67/68
ENDEND
-
8/12/2019 FSTEP TAKAFUL
68/68
ENDEND
ALLHAMDULLILAHALLHAMDULLILAH
Thank YouThank You
MOHD SHUKRI SALLEHMOHD SHUKRI SALLEH
012012--77664897766489