Malaysia legislation
Section 83
Section 83
Cessation of insurance policies and takaful certificates on winding up
(2)
Where a certificate ceases to be in force under subsection (1), the certificate owner shall be eligible to claim as a debt due to him by the insurer member on account of the certificate—
(a)
in respect of his general takaful certificate, a refund of a portion of the takaful contribution that is commensurate with the remaining period of the takaful certificate;
(b)
in respect of his family takaful certificate, the value of that family takaful certificate;
(c)
the value of the investments or savings held separately in respect of the takaful certificate; or
(d)
an other refund or amount, which shall be ascertained on such basis as may be prescribed by the
Corporation.
Malaysia Deposit Insurance Corporation 101
(3)
Where a policy ceases to be in force under subsection (1), the policy owner shall be eligible to claim as a debt due to him by the insurer member on account of the policy—
(a)
in respect of his general policy, a refund of a portion of the premium that is commensurate with the remaining period of the policy;
(b)
in respect of his life policy, the value of that life policy;
(c)
the value of the investments or savings held separately in respect of the policy; or
(d)
any other refund or amount, which shall be ascertained on such basis as may be prescribed by the
Corporation.
(4)
For the avoidance of doubt—
(a)
subsections (1) and (2) shall not operate to extinguish any right of a certificate owner or any other takaful beneficiary against the insurer member in respect of any risk event that has occurred prior to the date of the winding up order, in which case the certificate owner or other takaful beneficiary shall be eligible to claim as a debt due to him by the insurer member the amount due to him by reason of the occurrence of such risk event; and
(b)
subsections (1) and (3) shall not operate to extinguish any right of a policy owner or any other insured person against the insurer member in respect of any risk event that has occurred prior to the date of the winding up order, in which case the policy owner or other insured person shall be eligible to claim as a debt due to him by the insurer member the amount due to him by reason of the occurrence of such risk event.
102
Determining the obligatory payment for family takaful certificates and life policies