dealing with takaful intermediaries

8/6/2019 Dealing With Takaful Intermediaries

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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

Dealing with takaful_ENG7.0:Dealing with takaful_290109 24/10/09 2:37 G52 Page 2


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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

Dealing with takaful_ENG7.0:Dealing with takaful_290109 24/10/09


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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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8

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


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




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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.

14

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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