Malaysia legislation
Section 69
Section 69
(a)
family takaful;
(b)
general takaful;
(c)
life insurance; and
(d)
general insurance.
(2)
For the purposes of subsection (1), the Corporation may prescribe the following by regulations made under section 209:
(a)
the types or descriptions of takaful benefits within the categories referred to in subsection (1) that are protected takaful benefits, the types or descriptions of takaful beneficiaries and the types or descriptions of properties that are protected under, or excluded from, the takaful and insurance benefits protection system; and
(b)
the types or descriptions of insurance benefits within the categories referred to in subsection (1) that are protected insurance benefits, the types or descriptions of insured persons and the types or descriptions of properties that are protected under, or excluded from, the takaful and insurance benefits protection system.
(3)
For the purposes of this Part—
(a)
“risk” means—
(i)
in relation to a family takaful certificate, the death or survival of the participating life;
(ii)
in relation to a life policy, the death or survival of the life insured;
(iii)
in relation to a general takaful certificate, the loss on occurrence of one or more events provided for under the certificate; and
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(iv)
in relation to a general policy, the loss on occurrence of one or more events provided for under the policy;
(b)
“group certificate” or “group policy” means a takaful certificate or an insurance policy under which there are three or more participating lives or lives insured at the time of issuance of the certificate or policy;
(c)
“third party” means a person, not being a takaful beneficiary or an insured person, against whose claim a takaful beneficiary or an insured person is indemnified under a general takaful certificate or general policy;
(d)
“risk event” means any event in relation to which a takaful certificate or insurance policy provides for a takaful or insurance benefit.
(4)
For the purposes of subsection (1)—
(a)
where a certificate owner is entitled to protected benefits under two or more family takaful certificates with the same insurer member relating to the same risk event in respect of the same participating life, the aggregate of those benefits shall be protected up to such amount as prescribed by the
Minister on the recommendation of the Corporation;
(b)
where a policy owner is entitled to protected benefits under two or more life policies with the same insurer member relating to the same risk event in respect of the same life insured, the aggregate of those benefits shall be protected up to such amount as prescribed by the Minister on the recommendation of the Corporation;
(c)
where a certificate or policy owner is entitled to protected benefits under two or more general takaful certificates or general policies with the same insurer member, the aggregate of the takaful or insurance benefits under those general takaful certificates or general policies shall be protected—
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(i)
in respect of protected benefits under general takaful relating to the same risk event in respect of the same participating life or the same property covered, up to such amount as prescribed by the Minister on the recommendation of the Corporation; and
(ii)
in respect of protected benefits under general policies relating to the same risk event in respect of the same life insured or the same insured property, up to such amount as prescribed by the Minister on the recommendation of the Corporation;
(d)
where a certificate or policy owner is indemnified by the same insurer member under a general takaful certificate or general policy against the claims of two or more third parties in respect of the same risk event, the takaful or insurance benefits in respect of the claim of each third party shall be separately protected up to such amount as prescribed by the Minister on the recommendation of the
Corporation;
(e)
where—
(i)
a certificate owner is entitled to protected benefits under a group family takaful certificate; or
(ii)
a policy owner is entitled to protected benefits under a group life policy, the takaful or insurance benefits in respect of each participating life or life insured to which the group family certificate or group life policy relates shall be separately protected up to such amount as prescribed by the Minister on the recommendation of the Corporation;
(f)
where—
(i)
a certificate owner is entitled to protected benefits under a group general takaful certificate; or
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(ii)
a policy owner is entitled to protected benefits under a group general policy, the takaful or insurance benefits in respect of each participating life or life insured to which the group general takaful certificate or group general policy relates shall be separately protected up to such amount as prescribed by the
Minister on the recommendation of the Corporation;
(g)
where—
(i)
a certificate owner is entitled to protected benefits under two or more group family takaful certificates issued by the same insurer member relating to the same risk event in respect of the same participating life; or
(ii)
a policy owner is entitled to protected benefits under two or more group life policies issued by the same insurer member relating to the same risk event in respect of the same life insured, the aggregate of those takaful or insurance benefits in respect of each participating life or life insured to which the group family takaful certificates or group life policies relate shall be protected up to such amount as prescribed by the
Minister on the recommendation of the Corporation;
(h)
where—
(i)
a certificate owner is entitled to protected benefits under two or more group general takaful certificates issued by the same insurer member relating to the same risk event in respect of the same participating life; or
(ii)
a policy owner is entitled to protected benefits under two or more group general policies issued by the same insurer member relating to the same risk event in respect of the same life insured,
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the aggregate of those takaful or insurance benefits in respect of each participating life or life insured to which the group general takaful certificates or group general policies relate shall be protected up to such amount as prescribed by the Minister on the recommendation of the Corporation;
(i)
where—
(i)
a certificate owner is entitled to protected benefits under a family takaful certificate and a group family takaful certificate issued by the same insurer member relating to the same risk event in respect of the same participating life; or
(ii)
a policy owner is entitled to protected benefits under a life policy and a group life policy issued by the same insurer member relating to the same risk event in respect of the same life insured, the aggregate of those takaful or insurance benefits in respect of each participating life or life insured to which the family takaful certificate and the group family takaful certificate or the life policy and the group life policy relate shall be protected up to such amount as prescribed by the
Minister on the recommendation of the Corporation; and
(j)
where—
(i)
a certificate owner is entitled to protected benefits under a general takaful certificate and one or more group general takaful certificates issued by the same insurer member relating to the same risk event in respect of the same participating life; or
(ii)
a policy owner is entitled to protected benefits under a general policy and one or more group general policies issued by the same insurer member relating to the same risk event in respect of the same life insured,
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the aggregate of those takaful or insurance benefits in respect of each participating life or life insured to which the general takaful certificate and the group general takaful certificate or the general policy and the group general policy relate shall be protected up to such amount as prescribed by the Minister on the recommendation of the
Corporation.
(5)
In the case of a certificate or policy owner who is entitled to protected benefits under only one takaful certificate or insurance policy with an insurer member, the takaful or insurance benefits shall be protected up to the relevant amount prescribed under paragraph (4)(a),
(b)
or (c).
(6)
In the case of a certificate or policy owner who is entitled to protected benefits under paragraph (4)(a), (b), (g) or (i) and surrenders his family takaful certificates or life policies, or group family takaful certificate or group life policy, the aggregate of the surrender values in respect of each participating life or life insured shall be protected up to such amounts as prescribed by the Minister on the recommendation of the Corporation.
(7)
For the avoidance of doubt, an amount prescribed under subsection (4) may relate to any type, description or category of protected benefit and different amounts may be prescribed for different types, descriptions or categories of protected takaful and insurance benefits.
Transfers of certificates or policies among insurer members