Takaful Order, 2008 · As enacted · Part III
28. Establishment and maintenance of takaful guarantee scheme funds and payment of moneys out of the funds
Official textFrom Attorney General's Chambers, unchanged
There shall be established and maintained by the Authority in accordance with this section, takaful guarantee scheme funds in respect of general takaful business and family business respectively carried out by the takaful operator in Brunei Darussalam, so far as the business relates to Brunei
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;
Darussalam certificates; for the purposes of indemnifying in whole or in part, or otherwise assisting or protecting, participants and others who have been or may be prejudiced in consequence of the inability of takaful operators to meet their liabilities under family takaful certificates and compulsory takaful certificates issued by them.
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;
There shall be paid into the takaful guarantee scheme funds through the
Authority all such levies as may be imposed on and collected from the takaful operators in such instalments as the Authority may allow.
Subject to any written direction by the Authority, the total amount of levy shall not exceed one per cent of the annual actual contribution of a takaful operator in any year assessable on the general business, and in the case of family takaful business on any new business carried out by the takaful operator in the previous year. In the case of a takaful operator who has failed to submit his returns under section 60 by the due date, the Authority may, for the purpose of 3004
calculating the amount of levy payable by that takaful operator, assess an amount to be that takaful operator's actual contribution income for the preceding year and the amount so collected shall be adjusted against actual contribution income shown in the returns when they have been submitted.
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;
Any sum, including any other moneys or income received or paid into the takaful guarantee scheme funds including any profit or dividends derived from any investment of any sum out of such funds, may be withdrawn and utilised with the approval of and subject to the direction of the Authority to meet the administrative, legal and other costs of maintaining and administering such funds and the liabilities of any insolvent takaful operator to private participants in respect of any valid certificates registered in accordance with section 19:
Provided that any sum so withdrawn and utilised for the purpose of meeting the liabilities of any insolvent takaful operator shall not at any time exceed 90 per cent of the lawful amount due and payable to any private participant or person entitled through him or any other proper claimant. For the purposes of this subsection, a takaful operator shall be deemed to be insolvent if -
participant
"participant" includes, where a certificate has been assigned, the assignee for the time being and, where they are entitled as against the takaful operator to the benefit of the certificate, the personal representatives of a deceased participant;
at the close of the last accounting period for which statements have been lodged with the Authority under section 60, the takaful operator was insolvent;
winding-up proceedings have been commenced against the takaful operator; or
{c)
a receiving order has been made against the takaful operator by the High Court.
The Authority may at any time after the establishment of the takaful guarantee scheme funds, direct the discontinuance of the collection of any sum by way of levy if he is satisfied that there is more than adequate money in either or both of the funds to meet the liabilities of any insolvent takaful operator in accordance with this subsection, but may if the circumstances warrant, direct the resumption of the collection from the takaful operator in respect of either or both of the takaful guarantee scheme funds:
Provided that the Authority may at any time direct that this section shall not apply to certain types of takaful business within any class or may apply only with such exceptions, restrictions or on terms or for any period or in any other manner as he may direct.
takaful business
"takaful business" includes the business of takaful whose aims and operations are in accordance with Hukum Syara';
The Authority may appoint any person to assist him in the administration and distribution of the takaful guarantee scheme funds.
For the purposes of this section, the annual written contribution of a takaful operator in any other year shall exclude overseas inward re-takaful.
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;
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The moneys in the takaful guarantee scheme funds in so far as they are not for the time being required to be expended for the purposes of this section may be invested in such manner not contrary to Hukum Syara' as the Authority may approve and all income accruing in respect of such investments shall be credited to the funds.
In this section, "private participant" means a participant who is an individual, a partnership or any other unincorporated body of persons, all of whom are individuals; and "proper claimant" has the meaning assigned thereto by section 87(6).
Enforcement of requirements as to register of certificates and takaful funds and payment of levies by takaful operators.
Terms defined in s 2
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;
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;
general takaful
Defined · s 2"general takaful" means takaful for financial aid and assistance to a participant in case of loss or damage caused to his property, assets or body due to a casuality or disaster such as fire, flood, accident;
participant
Defined · s 2"participant" includes, where a certificate has been assigned, the assignee for the time being and, where they are entitled as against the takaful operator to the benefit of the certificate, the personal representatives of a deceased participant;
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;
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;