Takaful Order, 2008 · As enacted · Part III
Section 32
Official textFrom Attorney General's Chambers, unchanged
Subject to subsections (2) and (3), no takaful operator shall assume any risk in respect of any general takaful business unless-
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;
the contribution payable is received by the takaful operator or is guaranteed to be paid by such person in such manner and within such time as may be prescribed; or
a deposit in advance has been made of such amount and in such manner as may be prescribed.
Where the contribution payable pursuant to subsection (1) is received by any person, including a takaful agent or takaful broker, on behalf of a takaful operator, such receipt shall be deemed to be receipt by the takaful operator for the purposes of that subsection, and the onus of proving that the contribution payable was received by a person, including a takaful agent or takaful broker, who was not authorised to receive such contribution shall lie on the takaful operator.
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Subsections ( lJ and (2) shall apply to such description of general takaful business as may be prescribed.
general takaful
"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;
Notwithstanding subsections (1) and (2), a takaful operator shall not grant credit to takaful agents or takaful brokers and participant in respect of motor vehicle takaful business.
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;
Where any person, including a takaful agent or takaful broker receives on behalf of a takaful operator a contribution on a takaful certificate of a description prescribed pursuant to subsection (3), such person shall deposit with, or despatch by post to the takaful operator the contribution so received within such period as may be prescribed in relation to certificates of that description.
takaful agent
"takaful agent" means a person who does all or any of the following - (a) solicits or obtains a proposal for takaful on behalf of a takaful operator; (b) offers or assumes to act on behalf of a takaful operator in negotiating a certificate; (c) does any act on behalf of a takaful operator in relation to the issuance, renewal or continuance of a certificate;
Any refund of contribution, in relation to certificates of takaful of a description prescribed under subsection (3), which may become due to a participant on account of the cancellation of a certificate or alteration in its terms and conditions or for any other reason, shall be paid by the takaful operator directly to the participant and a proper receipt shall be obtained by the takaful operator from the participant and such refund shall under no circumstances be paid or credited to any other person, including a takaful agent or takaful broker.
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;
Any person who fails to comply with this section shall be guilty of an offence and liable on conviction to a fine not exceeding $10,000.
Appointment of actuary.
actuary
"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;
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;
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;
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 agent
Defined · s 2"takaful agent" means a person who does all or any of the following - (a) solicits or obtains a proposal for takaful on behalf of a takaful operator; (b) offers or assumes to act on behalf of a takaful operator in negotiating a certificate; (c) does any act on behalf of a takaful operator in relation to the issuance, renewal or continuance of a certificate;
takaful broker
Defined · s 2"takaful broker" means any company who, for compensation as an independent contractor, in any manner solicits, negotiates or procures takaful contracts or the renewal or continuance thereof on behalf of a takaful operator other than himself;
takaful business
Defined · s 2"takaful business" includes the business of takaful whose aims and operations are in accordance with Hukum Syara';
takaful certificate
Defined · s 2"takaful certificate" includes any contract of takaful for family takaful business or general takaful business whether or not embodied in or evidenced by an instrument in the form of a certificate, and references to issuing a certificate shall be construed accordingly; references to a certificate of a takaful operator include any certificate in respect of which the takaful operator is under any liability, whether the certificates were issued by the takaful operator or the liability was transferred to that takaful operator by another takaful operator; ntakaful intermediary~~ means a person who, as an agent, broker or adjuster for one or more takaful operators or as an agent, broker or adjuster for a participant or intending participant, arranges contracts of takaful;
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;