Takaful Order, 2008 · As enacted · Part III
20. Establishment and maintenance of takaful funds and allocation of surplus
Official textFrom Attorney General's Chambers, unchanged
( 1)
Every takaful operator registered under this Order shall establish and maintain in accordance with this section a takaful fund in respect of the class or each of the classes of takaful business carried on by the takaful operator in Brunei
takaful operator
"takaful operator" means a takaful operator which has been registered by the Authority under this Order; 11Undertakingn shall be construed in accordance with Part III of the First Schedule;
Darussalam so far as that business relates to Brunei Darussalam certificate.
The Authority may require any takaful operator to establish and maintain, in addition to the takaful funds under subsection ( 1) such other takaful fund as the Authority may determine for different types of certificates in respect of each class of business.
Authority
"Authority" means such person as is appointed by His Majesty the Sultan and Yang Di-Pertuan under section 4(1) to be the Authority for the purposes of this Order;
There shall be paid into a takaful fund all receipts of the takaful operator properly attributable to the business to which the fund relates (including the income of the fund), and the assets comprised in the fund shall be applicable only to meet such part of the takaful operator's liabilities and expenses as is properly so attributable.
takaful
"takaful" means a scheme in accordance to Hukum Syara' based on brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to the participants in case of need whereby the participants mutually agree to contribute for the purpose;
In the case of a fund established in respect of family takaful business, no part of the fund shall be allocated by way of benefits to participating certificates, except with the approval of an actuary and out of a surplus of assets over liabilities as shown on the last statutory valuation of the fund; and on the making of any such allocation that surplus shall be treated for the purposes of this section as reduced by the amount allocated.
family takaful
"family takaful" means takaful for financial aid and assistance to a participant and his family in case of his accidental death or disablement;
(Sl
If on the last statutory valuation in the case of a fund established in respect of family takaful business there was shown a surplus of assets over liabilities of the fund, there may, subject to the approval of an actuary and to any provision to the contrary in any instrument or contract binding the takaful operator, be withdrawn from the fund an amount not exceeding the surplus, and on the making of any such withdrawal that surplus shall be treated for the purposes of this section as reduced by the amount withdrawn:
statutory valuation
"statutory balance-sheet" and "statutory valuation" means respectively a balance-sheet lodged with the Authority in order to comply with section 60(1), and a valuation of which results are shown in a valuation balance-sheet lodged with him on an actuarial investigation made in order to comply with section 61 (1); any reference to the last statutory balance-sheet or to the last statutory valuation shall be construed as BRUNEI DARUSSALAM GOVERNMENT GAZETTE referring to that last one prepared or made and not superseded by the arrival of the date as at which another is to be prepared or made; any reference to there being shown in a statutory balance-sheet or on a statutory valuation a surplus of assets over liabilities of a takaful fund being construed accordingly by reference to the prescribed form of balance-sheet or valuation balance-sheet and to the rules to be followed under this Order and the regulations in preparing it;
Provided that no part of the surplus attributable to a participating certificate other than a re-takaful certificate shall be withdrawn in excess of one-quarter of the amount allocated thereout by way of benefits to participating certificates.
re-takaful
"re-takaful" means an arrangement consistent with sound takaful principles for re-takaful of liabilities in respect of risks undertaken or to be undertaken by the takaful operator in the course of his carrying on takaful business;
If in the last statutory balance sheet in the case of a takaful fund established in respect of general business there was shown a surplus of assets over liabilities of the fund, there may, subject to any provision to the contrary in any instrument or contract binding the takaful operator, be withdrawn from the fund an amount not exceeding the excess of the surplus over any fund margin of solvency prescribed for that fund under section 21, and on the making of any such withdrawal that surplus shall for the purposes of this section be treated as reduced by the amount withdrawn.
2996
In respect of any certificate belonging to the takaful operator's family takaful business which is under section 19(4) removed from the takaful operator's register of Brunei Darussalam certificates, there may be withdrawn from a takaful fund to which the certificate relates an amount not exceeding the prescribed amount.
Any amount withdrawn from a takaful fund under subsections (5), (6)
or (7) and, in a winding-up, any part of a takaful fund remaining after meeting the liabilities and expenses to which the fund is applicable may be dealt with as if it had not formed part of the fund except that, in the case of a winding-up where any other takaful fund of the takaful operator under this Order is in deficit, the surplus remaining after the winding-up shall first be applied to make good the deficit in that fund.
In a winding-up, assets comprised in the deposit made by a takaful operator under section 16 in respect of either class of business may be allocated by the Authority to any takaful fund established by the takaful operator for that class of business in such manner and proportion as he sees fit, and assets so allocated shall be treated as assets of the takaful fund, and subsections (3) and (8)
shall apply to those assets accordingly.
( 10)
Any takaful fund established by a takaful operator for any class of business shall, notwithstanding that the takaful operator at any time ceases to carry on that class of business in Brunei Darussalam, continue to be maintained by the takaful operator so long as the takaful operator is required by this Order to maintain the register of certificates belonging to that class.
( 11)
In the case of an existing takaful operator, a takaful fund shall be established as at the date of establishment of the register under section 19(9) and by reference to the certificates registered or required to be registered in it as at its establishment, and by reference to the assets and liabilities of the takaful operator as at that date; and 2997
existing
"existing" means existing immediately before the commencement of this Order;
{a}
there shall be allocated to the fund assets of a value not less, after allowing for any charges to which the fund is not applicable, than the aggregate of the amounts specified in subsection (12); and
(b} all such matters as would subsequently have affected the fund if established at that date shall be brought into account accordingly.
( 12)
The amounts referred to in subsection ( 11 ){a} are
{a}
the amount, determined in the prescribed manner, of the liability of the takaful operator in respect of the certificates referred to in subsection ( 11);
(bJ the amount of any other liabilities of the takaful operator in so far as the assets allocated to the fund will be applicable or be treated as having been applicable to meet those liabilities; and
(cJ the amount of the fund margin of solvency, if any, required to be maintained for the fund under section 21.
Terms defined in s 2
actuary
Defined · s 2"actuary" means a Fellow of the Institute of Actuaries in England, a Fellow of the Faculty of Actuaries in Scotland, a Fellow of the Society of Actuaries in the United States of America, a Fellow of the Canadian Institute of Actuaries, the Australian Institute of Actuaries or any person holding an equivalent qualification and approved in writing by the Authority as an actuary for the purposes of this Order;
Authority
Defined · s 2"Authority" means such person as is appointed by His Majesty the Sultan and Yang Di-Pertuan under section 4(1) to be the Authority for the purposes of this Order;
existing
Defined · s 2"existing" means existing immediately before the commencement of this Order;
family takaful
Defined · s 2"family takaful" means takaful for financial aid and assistance to a participant and his family in case of his accidental death or disablement;
re-takaful
Defined · s 2"re-takaful" means an arrangement consistent with sound takaful principles for re-takaful of liabilities in respect of risks undertaken or to be undertaken by the takaful operator in the course of his carrying on takaful business;
statutory valuation
Defined · s 2"statutory balance-sheet" and "statutory valuation" means respectively a balance-sheet lodged with the Authority in order to comply with section 60(1), and a valuation of which results are shown in a valuation balance-sheet lodged with him on an actuarial investigation made in order to comply with section 61 (1); any reference to the last statutory balance-sheet or to the last statutory valuation shall be construed as BRUNEI DARUSSALAM GOVERNMENT GAZETTE referring to that last one prepared or made and not superseded by the arrival of the date as at which another is to be prepared or made; any reference to there being shown in a statutory balance-sheet or on a statutory valuation a surplus of assets over liabilities of a takaful fund being construed accordingly by reference to the prescribed form of balance-sheet or valuation balance-sheet and to the rules to be followed under this Order and the regulations in preparing it;
takaful
Defined · s 2"takaful" means a scheme in accordance to Hukum Syara' based on brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to the participants in case of need whereby the participants mutually agree to contribute for the purpose;
takaful business
Defined · s 2"takaful business" includes the business of takaful whose aims and operations are in accordance with Hukum Syara';
takaful operator
Defined · s 2"takaful operator" means a takaful operator which has been registered by the Authority under this Order; 11Undertakingn shall be construed in accordance with Part III of the First Schedule;