Summary

CONTENTPAGE

EXECUTIVE SUMMARY1

INTRODUCTION2

PRODUCT3 4

PRICING5

COMMISION6

TRAINING7

SERVICING BY COMMERCE TAKAFUL8

MANAGEMENT MEETING8

CONCLUSION8

APPENDICES

-MRTT Product FeaturesAppendix 1

-Houseowner TakafulAppendix 2

-Motor Takaful- CIG Call CenterAppendix 3

-Commerce Group NetworksAppendix 4

Table of ContentExecutive Summary

This proposal suggest partnership program between RHB ISLAMIC BANK and Commerce Takaful in providing takaful products and services under Bancassurance business initiative. Commerce Takaful is in the group of second largest financial institution in Malaysia has the resources and readiness to provide products, competitive takaful contribution rates and services required by RHB ISLAMIC BANK to complement its Islamic financing products.The purpose of this paper is to propose ways on which a partnership program may be set up for mutual benefit. The paper covers the area of various business distribution channels, products, staff and product training.Introduction Commerce Takaful is able to provide competitive product, competitive takaful rate (premium rate) and services required by RHB ISLAMIC BANK. This reasonable rating will make the RHB ISLAMIC BANKs financing package more competitive in the market place

There is huge untapped market for takaful products evidence by small marginal takeup rate of takaful or insurance among the muslim market. There is an opportunity for RHB ISLAMIC BANK to expand its fee-based income to a greater scale. Embracing advanced technology in administration and services together with excellent customer services, the company is well poised to achieve exceptional growth in the next five years and beyond. Straight through processing and paperless transaction is our aspiration towards providing excellent services to our Banca Partner as well as our valuable end customers.

It is noted that there has been acceleration towards providing full financial service by RHB ISLAMIC BANK. RHB ISLAMIC BANK could offer across a broader range of financial services which includes takaful via independent risk carriers. Commerce Takaful is merely complementing RHB ISLAMIC BANK as a one stop financial center.

Enhances the RHB ISLAMIC BANKs image as a dynamic and customer focused financial institution by providing comprehensive financial needs of customer. Hence, maximizing cross selling opportunities from the bank huge customer base and enhance customer loyalty by minimizing the migration of customers to competitors.

The relationship would generate greater opportunity in strengthening customer relationship by offering wider range of financial products.

Product Financing Related ProductsFinancing given to borrowers, apart from the normal required security it would be also beneficial to get additional protection in the case of death, permanent disability or even critical illnesses to borrower. In this situation RHB ISLAMIC BANK would be able to recover it financing from takaful operator.The related products namely:-

1. Mortgage reducing term takaful (MRTT / MRTA)

This is to cover house financing

Please refer to Appendix 1 for product features2. Group Credit Takaful (GCT/DTA) To cover personal financing facilities Please refer to Appendix 2 for product features 3. HouseOwner Takaful

Please refer to Appendix 3 for product features4. Equipment all risk

This is to cover equipment finance by RHB ISLAMIC BANK under business banking financing.

5. Marine Takaful

On-line transaction for immediate coverage.

Cover Note could be issue at bank branches / trade centersThe products can be packaged together with bank product of which the takaful contribution can be priced together with the financing or the bank may extend financing for the takaful contribution.

Stand Alone ProductCommerce Takaful would suggest some of takaful product which is modeled on simple underwriting and simple acceptance procedure. The product would be of low cost and affordable by general public.The products namely:-

1. Personal Accident Customer to pay via Credit Card on monthly basis as low as RM20 per month.

2. Auto PA

One off payment from RM50 per year for entire family in the event of accident whilst driving the registered vehicle.

Exclusive ProductIt is also possible to jointly develop takaful product to meet RHB ISLAMIC BANK specific need. The developed takaful product along bank product to enhance it features to be more appealing to customers. RHB ISLAMIC BANK may have it own branding for the product.Pricing

Commerce Takaful rating for takaful contribution is competitive within the industry norm and practices. The detail rates or pricing for each product will be subject to information available.As for MRTT, our female rating is the lowest in the industry as at to date. This will attract low & competitive package when it is package with RHB ISLAMIC BANKs housing loan.

Commission to Bank

Commissions offered to bank are the standard level of commission practiced in the industry.Family Takaful ProductsItemProductsCommission

1Mortgage Reducing term Takaful10%

2Group Credit term Takaful10%

3Individual Family TakafulTBA

General Takaful Products

ItemProductsCommission

1Houseowner/Householder Takaful15%

2Fire Takaful15%

3Motor Takaful10%

4Personal Accident Takaful25%

5All Risks Takaful25%

6Money Takaful25%

7Fidelity Guarantee Takaful 25%

8Marine Cargo Takaful25%

9Burglary Takaful25%

10Public Liability Takaful25%

11Foreign Workers Takaful10%

12Workmen Compensation Takaful25%

13Contractors All Risks Takaful15%

14Equipments All Risks Takaful15%

TrainingTraining is a critical part of overall business performance. Commerce Takaful will undertake to train and develop a range of knowledge and skills to RHB ISLAMIC BANKs financial executives and staff. Area and Scope of Training

Product knowledge

Rating

Motivation

Selling techniques Structured Training ProgramCommerce Takaful is committed to support the development of the Financial Executives and bank employees. In view of this, Commerce Takaful would implement a structured training program to develop the bank employees along their new career path.

Support EmployeesBank employees who is directly involved in processing of customers takaful needs will be provided with training on product knowledge, operational matters and claim management.

Financial Executives

Financial executives as frontliners will be train on product knowledge, rating, motivation, selling techniques as well claim.Servicing by Commerce Takaful Klang Valley

Bank Headoffice and branches within the Klang Valley will be serviced by team of Commerce Takaful executives from Commerce Takaful head office. The executives will make scheduled visits to bank branches or if required would also be available anytime to attend to banks need.

Service NetworkThe other bank branches would be serviced by executives from 20 Commerce Group branches nationwide. List of Commerce International Group Branches is available in Appendix 4.

Management Meeting

It is propose that Commerce Takaful and RHB ISLAMIC BANK Management to meet and to see through on implementation also to review overall business matter on quarterly basis.Conclusion

The financial business environment is fast changing. The bigger players are getting bigger and stronger through merger and acquisition.

Every player would like to delight and lock its customers and at the same time win away competitors customers in the name of business expansion.

Therefore, RHB ISLAMIC BANK and Commerce Takaful could leverage on each other capabilities at the same time focusing and improving on their own core competencies.

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- 9 COMMERCE TAKAFUL BERHAD