LAW OF INSURANCE AND TAKAFUL

LAW OF INSURANCE AND TAKAFUL
(FBR 40103)
LECTURER’S NAME:
SALMAN LAMBAK
GROUP ASSINGNMENT:
CAR TAKAFUL CERTIFICATE WORDING

GROUP MEMBERS MATRIC NUMBER
MOHAMAD SHAFIQ BIN DERSHID 040555
MUHAMMAD NUR ALIFF BIN ALIAS 039573
AMIR MUZZAIEM BIN ZAABAR 040912
SHARIFAH NURUL NAEMAH BINTI BAKRI 039746
NADIA IZZATI BINTI ABU BAKAR 039856
AWRA ZARFINA BINTI ZAINI 039755

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CERTIFICATE OF TAKAFUL

IMPORTANT NOTICE – APPLICABLE TO ALL CONSUMER PRODUCTS
You are applying this protection solely for your noncommercial, business or professional purposes, you have the obligation to take reasonable steps to answer the questions in this Application Form. You are required to disclose any other item that you know will influence our decision to accept the risk and determine the rates and terms imposed. If you do not take reasonable care and the information provided by you is incomplete or inaccurate or failing to answer the question honestly, this may affect your claim. You must also notify Us immediately any inaccurate changes or information at any time after your Takaful Contract has been entered, varied or renewed with Us in the Application Form (or when you apply for this Takaful).
WHY DO I NEED THIS PROTECTION?
it is mandatory for all car owners in Malaysia to have legal car Insurance / takaful and road tax according to the Road Transport Act 1987, it is mandatory for all car owners in Malaysia to own legal car insurance and road tax and need to be renewed both annually . Also, in accordance with other legal requirements, it is important for car owners to have enough car cover coverage to protect you from something bad whether accident, fire, or theft. By having this protection you can rely on your takaful policy to cover the cost of repair or replacement. Furthermore, a study by the Malaysian Highway Safety Research Institute notes that there are more than 500,000 road accidents in 2016 and 7,000 of them die. Therefore, this has been a good reason for you to purchase a takaful policy to protect yourself and your vehicle from the risks involved.
PERSONAL DATA PROTECTION ACT (PDPA)
The Personal Data Protection Act 2010 (Act 709) seeks to protect your Personal Data and Sensitive Personal Data individually from any form of processing by Data Users without violating the Seven Principles of Personal Data Protection in Malaysia in respect of commercial transactions after 15 November 2013.

CHANGES IN TAXATION, REGULATIONS AND LEGISLATIONS.
We may vary the terms of the Certificate of Takaful if there are changes in taxation, regulations or legislation, or a directive is issued by any government authority, which imposes responsibilities on either party or which affects any of the terms of the Certificate of Takaful. The changes will be determined by Us to be appropriate and equitable. We will notify the effected Participant or Persons Covered in writing, when the terms in the Certificate of Takaful need to be changed.
1. What is this product?
This certificate provides protection to your vehicle from risks such as theft and accidental damage. In addition, it also provides protection against liability to others for death or injury, damage to the property of others, and accidental damage or fire on the vehicle or theft of your vehicle..
2. What Types of Car Protection Are Available in Malaysia?
There are three types of motor insurance/takaful available in the Malaysian market for the purpose of protecting you and / or your vehicle.
a) Third Party Coverage
Third-party protection is usually the cheapest among the three car protection coverage offered, and the most basic car insurance form you can have in Malaysia. However, this policy does not cover you for any damages to your own person or vehicle. the third party protection policy protects claims made against you for bodily injury or death caused by others (third parties). It also includes any loss or damage to their vehicle or property.
b) Fire Protection and Third Party Theft
This protection works like a third party cover, unless this policy allows you to claim if your car is in a fire or stolen state. Please note that this type of protection addresses loss / damage caused by accidental fire and theft, but not loss / damage by accident itself. This means you can only claim for events such as: – Your car is stolen – Damage from trial thefts such as broken door locks and broken windows – Damage due to fire.
c) Comprehensive Protection
This cover offers a wider coverage than two of the previously mentioned car insurance covers, it provides coverage for all of the above, but it also covers the damage done to your OWN car! In Malaysia, if you buy a new car with a bank loan, you need to purchase this type of policy for your new car.

3. What are the Shariah concepts applicable?
Wakalah
Wakalah enables us to act as a representative of the participants to manage and distribute funds received through donations. Under this contract, We are allowed to charge certain fees in managing Takaful business and services to participants subject to guidelines issued by Bank Negara Malaysia as follows:
Item (% of contribution)
Commission paid to the intermediary
Management expenses 10%
Up to 20%
Total Wakalah Fee Up to 30%

Tabarru’
In this plan, Participants have agreed to contribute their contributions to the General Takaful Fund for assistance to the Participant if required. In the context of Takaful operations every participant who wishes to obtain Takaful protection must be present with the intention of contributing (At-tabarru’at) to assist fellow participants if they are facing a disaster. In other words, more precisely, all participants agree to help each other in the event of an accident.
4. How much contribution do I have to pay?
The amount of contribution you need to pay may vary. It depends on the amount covered and your vehicle model, your age, past claims experience, NCDs, our preferred benefits and our underwriting requirements.

All contributions (if applicable) will be charged or related taxes. It is important to keep any receipt you receive as proof of payment of the donation.
5. What are some of the key terms and conditions that I should be aware of? Importance of Disclosure
• You are required to disclose all material facts such as past crashes and modifications on the engine.
• This Certificate is subject to the absolute requirement that the Contribution amount has been fully received by the Company on or before the effective date of the Certificate. The Company shall not be liable for this Certificate unless the Contribution is settled on or before the date of cover.
• You are encouraged to pay direct Contribution to us, either by cash, credit card or check (check shall be named on the Company only).

Sum Covered
• You must ensure your vehicle is protected at a reasonable rate.
• • Excess of all claims, is the amount of loss you must bear if your vehicle suffers loss or damage.
• • Compulsory excess, the amount of loss you must bear if your vehicle is driven by an unnamed person in the Certificate, and / or under the age of 21 and / or holds a Temporary (P) or Trial (L) driving license.

6. What are the major exclusions under this certificate?
This certificate does not cover certain losses, such as:
a) All consequential losses.
b) Loss of use of Takaful Participant Vehicles.
c) Depreciation, wear and tear, corrosion and corrosion, mechanical or electrical or electronic damage, computer equipment or damage, failure or rupture of any Part of the Participant’s Vehicle except for the windshield / back injury, windows or roof windows including film / light filter film.
d) Damage to the Takaful Participant Vehicle tire, except for the damaged Takaful Participant Vehicle.
e) Any loss or damage caused by, or arising out of a Fraud Criminal / Criminal act by a person in accordance with the meaning of the definition of Fraud / Crime of Fraud Criminal as provided in the Penal Code.
f) Damage to property belonging to, or under custody or under control or entrusted to Takaful Participants and / or Authorized Drivers by Takaful Participants and / or any Takaful Participant Family Member and / or Authorized Authority by Takaful Participant.
g) The liability to any member of the Takaful Participant’s family and / or any Drivers of Family Driven by a Takaful Participant who is a passenger in the Takaful Participant Vehicle unless he is required to be brought in or on the Takaful Participant Vehicle with or for the purpose of executing his employment contract with the Takaful Participant and / or Authorized Driver by the Takaful Participant and / or his / her employer.
h) Any claim brought to court against any person in any country outside the Geographical Area.
i) All legal costs and expenses incurred or recoverable in the Geographical Area.
7. Can I cancel my certificate?
You may revoke this Takaful Certificate by giving written notice to us. Upon cancellation, you are entitled to a Takaful Contribution return for a pro rata rate for the period of the Takaful Certificate that has been in force, subject to a minimum Takaful Contribution of RM50.00 required by us. No return of Takaful Contribution is allowed if there is any claim under this Takaful Certificate.
8. What do I need to do if there are changes to my contact details?
It is important for you to inform us of any changes to your information to ensure that all correspondences can be communicated to you on a timely basis.
Other types of similar cover available
a. Third party
b. Third Party, Fire and Theft

If you have any enquiries, please contact us at:

Helang Emas Takaful Berhad
(Licensed under Islamic Financial Services Act 2013 and regulated by Bank Negara Malaysia)
Level 2;3, Menara PNB
201 A, Jalan Tun Razak
50450 Kuala Lumpur
Tel: 1995 03 2407
Email : [email protected]
Homepage : www.helangemastakaful.com.my

IMPORTANT NOTE:
YOU MUST ENSURE YOUR VEHICLE PROTECTED AT THE FITNESS AMOUNT. IF IF ARE ACCEPTED TO ACCIDENT, YOU HAVE BEEN ADVISED OF INSURED BY APPROVED WORKSHOP. IF YOU HAVE COMPREHENSIVE PROTECTION AND YOU UNDERSTANDLY, YOU HAVE BEEN ADVISED TO PRESENT YOUR CLAIMS TO YOUR TAKAFUL OPERATORS. YOU MUST READ AND UNDERSTAND TAKAFUL CERTIFICATES AND DISCUSS WITH THE AGENT OR CONTACT TAKAFUL OPERATORS FOR MORE INFORMATION.