Takaful Act 1984, Part I — Preliminary (s 1–s 4) — Laws of Malaysia

s 1

This Act may be cited as the Takaful Act 1984. Short title.

In this Act, unless the context otherwise requires- Interpretation. "Accountant General" means the Accountant General, Malaysia; "accounting period", in relation to any takaful ope rator, means the period for which the operator makes up the accounts of the takaful business carried on by him in Malaysia; "adjuster" means any person who for compensation, fec, commission or salary investigates and negotiates settlement of claims arising under takaful contracts, solely on behalf of either the takaful operator or the participant; "broker" means any individual, firm or company who for compensation as an independent contractor, in any manner solicits, negotiates or procures takaful contracts or the renewal or continuance thereof on behalf of the participant oaner, than himsell; "contribution" means takaful instalment payable by participants; Add. A1699 IP1. I, S. 2] "Co-operative Societies Act" means the Co-operative Societies Act 1948, or the Co-operative Societies Ordinance 1958 of Sabah, or the Co-operative Societies Ordinance of Sarawak, as the case may require; "Director General" means the Director General of Takaful appointed under section 54; "family solidarity" means takaful for the benefit of the individual and his family; "operator" means a company or a society which carres on takaful business; "participant" includes, where a certificate has been assigned, the assignee for the time being and, where they are entitled as against the takaful operator to the benefit of the certificate, the personal representatives of a deceased participant; matprin cipal o ser med by as son lyl opeeator aie. charged with the responsibility of managing the affairs of the operator; "qualified actuary" means a Fellow of the Institute of Actuaries in England, or a Fellow of the Faculty of Actuaries in Scotland, or a Fellow of the Society of Actuaries in America, or such other person as may be prescribed by the Minister; "regulations" means regulations made by the Minister under this Act; "re-takaful" means an arrangement consistent with sound takaful principles for re-takaful of liabilities in respect of risks incurred or to be incurred by the takaful operator in the course of his carrying on takaful busi- "re-takaful's deposit" means an amount deposited with or retained by a takaful operator by way of security for the performance by the re-takaful operator of contracts undertaking liabilities incurred by the takaful operator; "statutory balance-sheet" and "statutory valuation" means respectively a balance-sheet lodged with the Director General in order to comply with subsection (1) of sE show an a subs cat 15; sol mi to no an fc W is tl MKT4 316 -ARFO Dadalı Berbahaya [Pt. I, S. 21 of section 41, and a valuation of which the results are shown in a valuation balance-sheet lodged with him on an actuarial investigation made in order to comply with subsection (1) of section 42 and— (a) any reference to the last statutory balance-sheet to the last statutory valuation shall be construed as reference to that last prepared or made and not superseded by the arrival of the data as at which another is to be prepared or made; and • (b) any reference to there being shown in a statutory balance-sheet or on a statutory valuation a surplus of assets over liabilities of a takaful fund shall be construed accordingly by reference to the prescribed form of balance-sheet valuation balance-sheet and to the rules to be followed under this Act in preparing it; "the Register" means the register of takaful certificates established by a takaful operator under section 15; "takaful" means a scheme 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; "takaful benefits" includes any benefit, pecuniary or not which is secured by a takaful certificate, and "pay" and other expressions, where used in relation to takaful benefits, shall be construed accordingly; "takaful business" means business of takaful whose aims and operations do not involve any element which is not approved by the Syariah; "takaful certificate" includes any contract of takaful family solidarity business or general business whether or not embodied in or evidenced by an instrument in the form of a certificate, and references to issuing a certificate shall be construed accordingly. References to a certificate of a takaful operator include any certificate in respect of which the operator is under any liability, whether the certificates were issued by the operator or the liability was transferred to the operator from another; [Pt. I, S. 2-3j Classification of business, and construction of references to matters connected with takaful. 13/66. "takaful operator", "takaful agent" and "takaful broker" means a person who carries on takaful business as takaful operator, takaful agent and takaful broker respectively.

s 3

(1) For the purposes of this Act- (a) takaful business shall be divided into two classes- (1) family solidarity business which, in addition to all takaful business concerned with solidarity certificates shall include, in the case oi any takaful operator, any type of takaful business carried on as incidental only to the operator's othersolidarity business; and (ii) general business, that is to say, all takaful business which is not family solidarity business, and the re-takaful of liabilities, under takaful centificates shall be treated as takaful business of the class and type to wilich the centificates would have belonged if they have been issued by the re-takaful operator; (b) references to carrying on takaful business include the carrying it on through an agent, or as agent; (c) the operation, otherwise than for profit, of scheme or arnangement relating to service in oarticular cffices or employments, and having ior its obiects or one of its oblects to make provision in respect of persons serving therein against future retirement or partial retirement, or against future termination of service through death or disability, or agaimst similar matters, shall not be treated as carrying on the business of takaful; and d) no society registered under the Societies Act 1966 shall be deemed to be a takaful operator, and no agent for such a society shall as such be deemed to be a takaful agent; nor shall references in this Act to a certificate or contract of takaful apply to any certificate or contract whereby a takaful is effected with such society.

s 4

ca SI [Pt. I-II, S. 4) kaful ‹aful taful two Idiith of tal ty ul 1l S S

Takaful Act 1984 Part I — Preliminary

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