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For more information, log on to
www.insuranceinfo.com.myor visit our kiosks at most branches of insurance and
takaful companies or contact your agentsDealingwith TakafulIntermediaries
A consumer education programme by:
GeneralInformation
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About this booklet 01
Who is a takaful intermediary
Minimum standards of service 02
Basic conduct of takafulintermediaries 05
Tips on dealing with takafulintermediaries 08
How do I lodge a complaint andthe redress avenues available 10
Frequently asked questions 12
Contents
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Disclaimer
This document is intended for your generalinformation only. It does not contain exhaustive
advice or information relating to the subjectmatter nor should it be used as a substitute forlegal advice.
Date: 2009
Design Copyright 2009 by Freeform Design Sdn Bhd. All rights reserved.
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Intermediaries are
paid commisions
which is based on
a percentage
taken out of the
contributions made
by the participants
General takaful agents:
are governed by the Code of Ethics for Takaful
Intermediaries drawn up by the MTA;
are required to pass the Takaful Basic Examination
and complete a minimum of 20 hours training per year
for Continuous Professional Development (CPD); and
must comply with the minimum standards of disclosure
requirements issued by Bank Negara Malaysia which,
among others, require agents at the point of sale, toexplain to potential customers on the main features of
the product being marketed, details of commissions
paid, and procedures on claims and complaints.
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Family takaful agents:
are governed by the Code of Ethics for Takaful
Intermediaries drawn up by the MTA;
are required to pass the Takaful Basic Examination
and complete a minimum of 30 hours training per
year for CPD; and
are required to adhere to the minimum standards
for proper advice issued by Bank Negara Malaysia
which requires agents to obtain adequateinformation about potential customers. This will
enable an agent to analyse a potential customer's
personal and financial circumstances and identify his
financial needs and priorities so that a suitable and
affordable takaful product can be recommended.
Takaful brokers:-
are governed by the Client's Charter on Code ofGood Business Practice, and Code of Ethics and
Conduct drawn up by MITBA; and
must adhere to the rules and regulations specified
in the Takaful Act 1984.
In addition, a takaful broker's senior management
and board of directors must be 'fit and proper' and its
employees are required to pass the Basic Certificate
Course in Insurance Broking.
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Basic conduct of takaful intermediaries
When dealing with takaful intermediaries, you should
expect a certain standard of professional conduct in
handling your needs. A takaful intermediary should:
present his/her Agent's Authorisation Card to you
when requested (applicable only for takaful agents).
An agent whose registration has been approved by
the Registrar of Takaful Intermediaries possesses an
Authorisation Card which contains information suchas the name of the takaful operator whom the agent
represents and the validity period of the agent's
registration. A general takaful agent can represent a
maximum of two general takaful operators while a
family takaful agent can only represent one takaful
operator. A takaful agent who promotes both family
and general takaful products can represent one family
takaful and a maximum of two general takaful
operators. A takaful broker must be a member of
MITBA and is licensed by Bank Negara Malaysia. The
licence is subject to annual review;
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Understand fully the terms
and conditions of the proposed
takaful contract
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exhibit good knowledge of the products and services
offered by the takaful operator and the market,
generally;
understand your needs and assist you in the right
choice of takaful products and services;
explain to you clearly the nature of information
required in the proposal form and also the
importance of understanding material facts;
explain clearly the terms and conditions of theproposed takaful contract to ensure that you fully
understand the takaful products being considered;
draw attention to any restrictions and exclusions
applicable under the proposed takaful contract;
follow-up and provide continuous service to you,
such as renewal of policy and provide updates on
relevant new products; and
provide assistance when you are making claims
against the takaful operator.
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Tips on dealing with takaful intermediaries
To ensure you get the best service and proper advice
from your takaful agent or broker, consider whether
the intermediary shows the following characteristics:
has a good knowledge of takaful products;
understands your needs and interests;
ensures you understand what you are participating in;
does not over-promise or over-sell;
explains the full facts of the products, scope of cover
and exclusions, if any; and
delivers quality and timely service.
To ensure your interests and rights are protected:
deal only with registered/licensed intermediaries;
deal with intermediaries with proven track records,
get good referral from friends and relatives;
be truthful and declare all material facts about
yourself;
never be persuaded to sign on blank forms or
anything you do not understand;
ensure that you fully understand the products being
considered;
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read the certificate benefits and terms carefully,
and compare them with similar products;
shop around to get value for money;
participate based on what you need and can afford;
ask for marketing materials, for example, the
marketing illustrations, product pamphlets, or
customer fact find form (for family takaful plans
only), and keep the documents for future reference;
when in doubt, always ask for more information
from the intermediaries or seek clarification from
the takaful operator that offers the takaful
products; and
ask and keep the receipt as proof of contribution
payment to the takaful operator.
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How do I lodge a complaint and the redressavenues available
If you have any queries, feedback or complaints
about a takaful agent or broker, refer the matter
first to the relevant takaful operator or broking
company or to:
For general and/or family takaful agents
The Registrar
Malaysian Takaful Association Takaful AgentsRegistration and Regulation Board
Malaysian Takaful Association
21st Floor, Main Block
Dataran Kewangan Darul Takaful
Jalan Sultan Sulaiman
50000 Kuala Lumpur
Tel: 03 2031 8160Fax: 03 2031 8170
E-mail: [email protected]
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For insurance and/ takaful brokers
The Chairman
Malaysian Insurance and Takaful Brokers Association
Unit 303, Block A
Pusat Dagangan Phileo Damansara II
No. 15, Jalan 16/11, Off Jalan Damansara
46350 Petaling Jaya
Tel: 03 7960 8191
Fax: 03 7954 3954
E-mail: [email protected]
If you are still not satisfied with the manner your
complaint is being resolved, you can write to the
following:
BNMTELELINK
Corporate Communications Department
Bank Negara MalaysiaP.O. Box 10922
50929 Kuala Lumpur
Tel: 1 300 88 5465
Fax: 03 2174 1515
E-mail: [email protected]
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?FrequentlyAskedQuestions
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How can I ensure that the intermediary I am dealing
with is authorised?
In the case of a takaful agent, you can request for
the agent's Authorisation Card which contains
information such as the name of the takaful
operator whom the agent represents and the validity
period of the agent's registration or you may contact
the relevant takaful operator or MTA to verify the
agent's status. For a takaful broker, you may wish
to check whether the broker is licensed to conducttakaful broking business by Bank Negara Malaysia
and is a member of MITBA.
What can I expect an intermediary to do when
recommending a family takaful product to me?
The intermediary is responsible to do at least the
following:
Obtain sufficient information about yourself, such
as your personal details and financial circumstances;
Understand your financial needs in relation to
protection, retirement, children's education, savings
and investment plans;
Ensure that the product being recommended issuitable for you, taking into account your financial
circumstances;
Q.
A.
Q.
A.
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Explain to you why the product recommended is
suitable; and
Provide you with enough information to enable
you to make an informed decision before
participating in a family takaful plan.
I was advised by an intermediary to cancel my
existing takaful certificate and participate in a new
one. What should I do before making a decision?
Before making a decision about cancelling an
existing certificate to participate in a new one,
you should consider the following:
Compare the features and benefits of the existing
and the new certificates;
Understand the costs involved for the cancellation,
such as termination charges of the existingcertificate, entry charges for the new certificate,
loss of cash value and any loss of benefits due to the
cancellation of the existing certificate. For a family
takaful certificate, the cash surrender value consists
of accumulated savings in your Participant's Account
plus any investment returns; and
Consult the takaful operator or agent from whomyou obtained the existing family takaful certificate
to review the costs involved.
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Q.
A.
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It may not be in your best interest to cancel an existing
family takaful certificate and participate in a new one.
However, should you feel that the conversion is notdisadvantageous to you, you can obtain a written
confirmation from the takaful operator to that effect.
I participated in a takaful plan through an intermediary.
Who is responsible to issue and deliver the certificate
documents to me?
It is the responsibility of the takaful operator to issue
and send directly the certificate documents to you.
However, there are takaful operators which send the
documents through the intermediary from whom the
takaful cover is obtained. An intermediary is not
empowered to issue any takaful certificate on behalf of
a takaful operator. If you do not receive the certificate
within a month after paying the contributions, youshould contact the takaful operator.
Q.
A.
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I have been making contributions through my
agent/intermediary. Is this safe?
When making contributions, avoid paying in cash to
the agent/intermediary. It is advisable that you pay
directly to the takaful operator, either by cheque,
money order, standing order instruction, credit card
deduction or salary deduction facility. Should you
decide to pay the contributions through your agent,
ensure your cheque or money order is made out in
the name of the takaful operator, and not that ofthe agent/intermediary. Do ensure that you receive a
receipt as proof of contribution payment.
Q.
A.
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