Labuan Islamic Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part VII · Labuan Takaful Business and Labuan Takaful Related Activities
77. Licensing of Labuan takaful business and Labuan takaful related activities
Feedback & supportNo person shall carry on or transact or hold himself out as carrying on or transacting any Labuan takaful business unless that person is—
Labuan takaful business
“Labuan takaful business” means takaful business which includes Labuan captive takaful business, Labuan retakaful business and such other takaful business approved by the Authority but does not include any takaful business that is regulated or prohibited under other written law in Malaysia;
a Labuan company;
a foreign Labuan company; or
a branch of a Malaysian takaful operator, and holds a valid takaful licence.
Notwithstanding subsection (1), a Labuan insurer as defined in the Labuan Financial Services and Securities Act 2010 may carry on or transact or hold himself out as carrying on or transacting any Labuan takaful business if the Labuan insurer has obtained the prior approval of the Authority.
No person shall carry on or transact or hold himself out as carrying on or transacting any business as a Labuan takaful manager, Labuan takaful underwriting manager or Labuan takaful broker or any other Labuan takaful-related activities as may be specified by the Authority unless that person holds a valid takaful licence.
Labuan takaful manager
“Labuan takaful manager” means a person who is licensed to provide for management or administration services related to Labuan takaful business but does not include a Labuan takaful underwriting manager;
Notwithstanding subsection (3), a Labuan insurance manager,
Labuan underwriting manager or Labuan insurance broker as defined in the Labuan Financial Services and Securities Act 2010
may carry on or transact or hold himself out as carrying on or transacting any business as a Labuan takaful manager, Labuan takaful underwriting manager or Labuan takaful broker or any other
Labuan takaful underwriting manager
“Labuan takaful underwriting manager” means a person, not being a bona fide employee, who is licensed to provide underwriting services, including the administration of the business, to one or more Labuan takaful operators;
Labuan takaful-related activities if the Labuan takaful manager,
takaful
“takaful” means a scheme in compliance with Syariah principles based on brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to the participants in case of need whereby the participants mutually agree to contribute for that purpose;
Labuan takaful underwriting manager or Labuan takaful broker has obtained the prior approval of the Authority.
Labuan takaful broker
“Labuan takaful broker” means a person who is licenced to— (a) arrange for Labuan takaful business on behalf of prospective or existing policy owners; (b) arrange for Labuan retakaful business on behalf of any takaful operator seeking retakaful; or (c) analyze the financial circumstances of another person and provides a plan to meet that other person’s financial needs and objectives, whether or not a fee is charged in relation thereto.
Except with the prior written approval of the Authority, a person who is not a takaful licensee shall not assume or use the words “Labuan takaful operator”, “Labuan takaful manager”,
“Labuan takaful underwriting manager”, “Labuan takaful broker”
or any derivative of such words in any language capable of being construed as indicating the carrying on of Labuan takaful business or Labuan takaful-related activities by such person.
This section shall not apply to bank licensees or Islamic bank licensees distributing the takaful products of a Labuan takaful operator who has obtained the prior approval from the Authority.
Labuan takaful operator
“Labuan takaful operator” means a person who is licensed to carry on Labuan takaful business;