CODE OF ETHICS FOR UM TAKAFUL
One of the more prominent endeavor for Takaful Operators is to create a healthy and highly credible business environment. A healthy and credible environment is necessary to ensure that the interests of the Member Companies and the benefits to the public are protected.
It is imperative that the Takaful Operators’ Agents observe the standard of ethics which forms the basis of the principles and business of Takaful.
To this end, the Malaysian Takaful Associations (MTA) has made it their aim to introduce a set of rules of ethics for the use of the Takaful Operators’ Takaful Agents. This Code of Ethics is the basic guideline for Takaful Agent to observe in their practice. The agenda of the guideline is to strengthen universal moral values and consequently to uphold the interests and the welfare of the company, the shareholders, the Takaful participants, the community in general and the Agent themselves.
Central to this Code of Ethics is the principle that this Code encapsulates the tenets of honest practices, responsible, transparent as well as carrying social agenda for the community.
This Code of Ethics is formulated with a view to attaining the following objectives:
- To provide a minimum standard of conduct for the Agents while keeping to the principles and practice of meeting the objectives, missions and requirements of the Takaful Operators;
- To create a healthy, transparent and fair business practice code of conduct;
- To inculcate best practice standard of conduct amongst the Agents;
- To ensure that the Agents constantly conduct themselves in a manner which does not contradict the code of ethics which has been drawn up.
- This Code of Ethics is applicable to all registered agents of the Takaful Operators’ but its provision shall not be mandatory on International Takaful Operators’ Takaful Agents;
- Where any provision of this Code of Ethics is or for any reason becomes void, unenforceable or prohibited, it will not affect the validity of or the enforceability of the other provisions of this Code of Ethics; and
- This Code of Ethics is subject to the Takaful Act 1984 and any other Act of law subsequent introduced governing the practice of Takaful in Malaysia.
Summary of Title
This Code of Ethics contains the Code of Ethical Conduct for Takaful Agents.
For the purposes of this Agreement, unless the context otherwise requires.
Words importing the singular include the plural and words importing the masculine gender includes the feminine and neuter genders. Words referring to a person include individuals and corporations.
References to the provisions of any law refers includes a reference to any amendment of the law and re- enactments.
References to all Parts, Sections, Schedules are to be interpreted as references to all Parts, Sections and Schedules of the Code of Ethics.
Headings of parts and sections in the Code of Ethics is intended only for the ease of comprehension and should not be taken into account in the interpretation of the provisions of this Code of Ethics.
References to any document includes references to the same which may from time to time be amended in any circumstances whatsoever or matters related thereto and others documents executed from time to time as a supplement or supplementary to it or in substitution to the same.
Words and phrases defined in the Agreement to which this Code is an Appendix and in the First Schedule and the Second Schedule thereto shall, when used herein, bear the same meaning as in the Agreement, the First Schedule or the Second Schedule, as the case may be.
Intermediaries     Refers to any person or persons, whether corporate or unincorporated, authorized directly or indirectly to procure, market, transact, deal or negotiate any takaful business for or on behalf of Takaful Operators.
Takaful Operators(s)     Refers to a company licensed under the Takaful Act 1984 to carry out the business of takaful.
Bank     Refers to Bank Negara Malaysia.
Shariah Committee     Refers to the Takaful Operators’ Shariah Committee appointed according to the provisions of their Memorandum and Articles of Association.
Shariah     Refers to rules of Shariah approved by the Takaful Operators’ Shariah Committee or to the National Shariah Advisory Council, Bank Negara Malaysia, where applicable.
Takaful Act     Refers to the Takaful Act 1984 including any amendments of the law or re- enactments thereof.
Takaful Business     Refers to all Takaful Business as defined in the Takaful Act 1984.
Related Persons     Persons related to a person including: -      a) the spouse;      b) a brother or sister;      c) a brother or sister of the person’s spouse;      d) a person who has a direct nasab (blood relationship) with the persons;      e) a person who has an ascending or descending nasab with the persons;      f) a spouse of any one of the persons mentioned in paragraphs (b), (c), (d) or (e);      g) a person who has a direct descending nasab with any of the persons mentioned in paragraphs (b), (c) or (f);      h) an uncle, aunt or cousin to a person, or to the person’s spouse; or      i) a spouse, or a person with a descending, with the persons mentioned in paragraph (h).
CODE OF ETHICS
Summary of Title
Each Agent is to conduct and deal with all Takaful transactions, business, operations and activities according to the Takaful Act and to observe Malaysian laws as well as Bank Negara Malaysia guidelines.
Each Agent is to refer to the Takaful Operator in the event of doubt or inconsistency with regard to a confirmation or observation of the Takaful Act and other relevant regulations.
When underwriting, each Agent must comply with, observe and to refer to underwriting and actuarial principles applicable as prescribed by Takaful Operator; and
Each Agent must refer to/be guided by the Agents’ manual where it may safely be followed.
Specific Principles of Transaction
Family Takaful Agents are allowed to represent only one (1) Takaful Operator. Representing another Takaful operator for Family Takaful Business is prohibited.
General Takaful Agents are permitted to represent two (2) Takaful Operators.
General Principles of Transaction
Signed a declaration that they will obey the guidelines laid out;
Introduce himself/herself as a Takaful Agent and produce their registered Agent authorization card when dealing with clients;
Ensure that the proposed plan/scheme meets with the client’s need and means;
Provides consultation services based on the Agent’s expertise and referring to the Takaful Provider’s expertise, where necessary;
Consider that all information given by a prospective participant to the Takaful Operator and the Agent is confidential whether he is still a Takaful Agent or has ceased his period of service with the Takaful Operator. The Takaful Agent is prohibited from disclosing or utilizing certificate-holders’ personal information, trademark, correspondence between clients, and companies’ accounts or business.
Provide a comprehensive and comparison of the details of each product when comparing the same to other types of product;
Observe the principles and values set out and compete in a healthy manner in expanding the Takaful market and the Takaful Operator’s business;
Communicate with clients with fairness and honesty;
Ensure that clients do not suffer any losses whether through any act commission or omission of the Agent;
Provide extensive services (after sales services) to Participants;
Ensure that any advertisement or public announcement is clear, does not confuse or misleads with regard to the Agent or other members;
For those who are appointed as a Takaful Operator’s Agency Manager or an Agency Supervisor to hold the post on full-time basis.
Agents are PROHIBITED from:
Making, producing or participating in the making of any act or announcement of any statement, promise or estimate where it is known that the same is confusing or dishonestly suppressing any material fact;
Making any advertisement of the Agent himself or of his agency through any print or electronic media such as [newspapers, the internet] or others without Takaful Operator’s written consent;
Using a job title/designation other than that allowed by the company;
Misleading the public by causing them to believe that the Agent is a Takaful Operator or a Takaful protection provider, or that the Takaful products provided are provided by the Agent;
Making any inaccurate and unfair criticism of other insurance companies or other Takaful Operators;
Persuading clients from canceling existing certificates, unless such existing certificates do not meet the needs of the client;
Agents are also absolutely prohibited from using the names of any proxy including that of relatives in order to secure the contract as Agent with the intent of conducting any transaction on behalf of the Takaful Operator;
Using any information obtained by the Company to further his own ends or for any purpose other than that of the Takaful Operator’s; and
Imposing any additional charges on the agreed contribution unless the prospective certificate holder is informed of the amount and the purpose of the additional charge.
Explanation of the Takaful Contract
Explain all provisions contained in a proposed contract(s) to ensure that the client fully understands the extent of his involvement;
Give an explanation as to the exemptions contained in the certificate;
Specific provisions for Family Takaful contracts:
- Focus on the long-terms nature of the certificate and explain to the client the consequences of an early surrender of the certificate;
- Clarify whether or not the certificate is exempted from tax;
- Where a certificate provides for profit-sharing with the Takaful Operator or depends on variable factors such as investment performance, a clear illustration of the variable profits to be expected must be made. In the case of collateral certificates where the proceeds of the matured certificate are used to settle financing facilities, the illustration given must clearly show that there is no guarantee that the full amount of the facility will be payable upon maturity of the certificate;
- When illustrating the profits to be gained from investment, it must be explained that the profits to be gained from investment is based on certain assumptions. Therefore, future profits are not guaranteed; such profits may be lower or higher than current profits (past performance does not necessarily indicate future trend);
- Agents are provided with illustrations by the Takaful Operators. Therefore, the Agents must provide a complete illustration to a prospective client during discussions;
- Agents are absolutely prohibited from amending the illustrations provided by the Takaful Operators or from increasing the rate of investment profit without written consent from the relevant Takaful Operator;
- Agents are absolutely prohibited from adding to or highlighting certain favourable aspects only; and
- Agents must provide information that is accurate and without any intention of fraud or similar.
Specific provisions for General Takaful contracts:
- For motor vehicle Takaful, no Agent may assume any risks to which the Takaful (Assumption of Risk and Collection of Contributions) Regulations 1985 apply unless and until cash before cover has been accepted by the Agent;
- For motor vehicle Takaful, where the contribution has been paid to the Agent by the participant, the Agent must remit the said contribution to the Operator or to the collection account specified by the Operator within seven (7) working days of the date of such assumption over of risk.
- Cancellation of a motor vehicle Takaful is not allowed except in cases where the participant’s cheque is rejected by the relevant bank.
Disclosure of Underwriting Information
When receiving a completed proposal form or any other materials, Agents must:
- Avoid from influencing the proposer and should explain to him that all answers or statements are the responsibility of the proposer’s; and
- Provide an explanation of Section 28 of the Takaful Act 1984 whereby the proposer is informed of the consequences of non-disclosure and of giving inaccurate statements by focusing on the relevant statements contained in the proposal form and giving a detailed explanation thereof to the proposer.
Accounts and Financial Aspects
- All contributions or monies collected on behalf of the Takaful Operator must be directly forwarded to the same or be deposited as soon as possible into a bank account in the name of the Takaful Operator;
- All accounting business and financial aspects must be conducted with transparency and without giving rise to any prejudice.
Subject to Laws and Other Regulations
- The Agents are subject to the provisions of the Takaful Act 1984 and to other laws and regulations issued by the Takaful Operators, industry law-makers and other authorities.
Agents are subjected to the fulfillment of the Minimum Requirements for the Continuous Professional Development (CPD) as per the Guidelines on CPD Hours issued from time to time.
The Importance of Ethics for Agents
Takaful transactions are based on trust and honesty as well as requiring a responsible attitude and a high level of professionalism. The confidence of Takaful participants and of the public will be ensured and enhanced if Agents run their Takaful Business on the following principles:
- Magnanimous and charitable
Disciplinary Procedures and Penalties
Where there has been a breach of the Code of Ethics by any Agent, the Malaysian Takaful Association may impose any penalty in accordance with the amount of penalty imposed by the relevant Takaful Operator as follows (or a combination thereof):
- The penalty amount imposed on the Takaful Operator by the Malaysian Takaful Association due to the breach by the Agent; and/or
- A proposal that the said Agent’s contract be terminated.
Any breach of the Code of Ethics must be reported to the disciplinary committee.
Amendments to the Code of Ethics
Amendments to the Code of Ethics
- The Malaysian Takaful Association has the right to rescind, modify, change or amend this Code of Ethics to render it suitable to the Takaful Business environment and other circumstances. Agents are hereby bound and subject to any future amendments made; and
- In the event of any changes, the Malaysian Takaful Association shall inform the Agents through a notice given to the Takaful Operators before the said changes take effect.
All Takaful Agents must at all times comply with every guideline and rule contained in this Code of Ethics.
TAKAFUL AGENTS CONTRACT - TERMS & CONDITIONS
- The Takaful Operator hereby authorizes the Unit Manager as an Agent of the Takaful Operator to procure and transmit to the Takaful Operator applications for all forms of family takaful, group takaful and annuities and to deliver to any person accepted by the Takaful Operator following receipt of a properly completed application for such policies and individual contracts, notices, contribution receipts and other relevant documents sent to the Unit Manager by the Takaful Operator and whilst any such certificate or contract shall continue to exist to collect and forthwith pay over to the Takaful Operator all contributions on such business.
- The Unit Manager shall at the sole discretion of the Takaful Operator and on such terms and conditions as the Takaful Operator may determine, recruit Agents for the Takaful Operator who shall enter into a contract for services with the Takaful Operator as Agents thereof, and thereafter the Unit Manager shall be responsible for their training and supervision which responsibility shall include but not limited to the extension of services to those certificate holders whose policies are written by the Unit Manager and/or his Agents.
- The term Agent as used herein shall be understood to mean only those Agents who have entered into an Agent's Contract with the Takaful Operator.
- The term Leader used in this Contract shall mean the Unit Manager or District Manager, as the case maybe.
- All applications received by the Unit Manager or any Agent recruited by him for the takaful referred to Clause 1 hereof shall be forthwith submitted to the Takaful Operator in the form and manner as set out in the Agent’s Contract maintained by the Unit Manager.
- The territory within which the Unit Manager and/or his Agents are authorised to procure takaful as specified in Clause (1) above, is limited to the state(s) of MALAYSIA (hereinafter called the said territory). The Takaful Operator shall have the right to contract for the appointment and termination of other Agency Leaders from time to time in the said territory in such manner as the Takaful Operator shall deem fit and shall further have the right to contract for the appointment and termination of other Agency Leaders outside the said territory and to extend or restrict the said territory as it deems fit.
- Should the Unit Manager decide to engage any staff or other person(s) such staff or other person(s) shall not be or be deemed to be engaged or employed by the Takaful Operator or by the Unit Manager on behalf of the Takaful Operator and any costs and/or expenses incurred as a result of such person(s) being engaged shall be the sole responsibility of the Unit Manager.
- Any representation or warranty by the Unit Manager to any staff or other persons engaged by him (whether or not under a contract for services) that they are being engaged or employed by the Takaful Operator shall be a breach of this Contract and entirely without authority.
- It is hereby mutually agreed and declared that nothing contained herein shall be construed to create the relationship of employer and employee whether expressly or impliedly, between the Takaful Operator and the Unit Manager or any of the persons under his charge which shall include Agency Leaders and Agents.
- The Takaful Operator, at its discretion and with the concurrence of the Unit Manager, may appoint other Agency Leaders from amongst those per`sons previously trained by the Unit Manager and who are at the time of their appointment an Agent of the Takaful Operator and such other Agency Leaders shall enter into an Agency Leader’s Contract as determined by the Takaful Operator which Contracts shall be and be deemed to be contracts for services.
- The term Agency Leader as used herein shall be understood to mean corporations or persons holding either a General Agent’s Contract, District Manager’s Contract or Unit Manager’s Contract with the Takaful Operator as may be applicable in the context hereto.
- The Takaful Operator will pay and the Unit Manager agrees to accept as compensation in full for all services rendered under this Agreement, the payments set forth in the Agency Compensation Handbook (hereinafter referred to as Annual Schedule of Production and/or Schedule).
- The Schedule referred to in Clause 10 hereof shall form and be deemed to form a part of this Contract for so long as it shall subsist and this Contract shall only be deemed to be valid and binding upon the Takaful Operator for so long as such Schedule shall subsist in accordance with the date stated therein and there shall be no holding over of any of the terms and conditions of this Contract save and except that the Takaful Operator shall be entitled to enforce any such term or condition by reason of any breach on the part of the Unit Manager and/or Agents for which the Unit Manager would be liable hereunder.
- Any benefits, remuneration, privilege or perquisite not expressly set out herein or referred to in the Annual Schedule of Production Incentives shall be at the sole discretion of the Takaful Operator without any binding legal effect on the Takaful Operator to continue or improve any such benefit, remuneration, privilege or perquisite and the Takaful Operator shall be at full liberty to modify, change or discontinue forthwith any such benefit, remuneration, privilege or perquisite whether expressly set out in the Annual Schedule of Production Incentives or not.
- The Unit Manager shall not and undertakes not to offer the Takaful Operator’s Agent’s Contract to any Agent who is already under contract to the Takaful Operator, or make any Contract or arrangement for the procuring of takaful as specified in Clause 1 hereof with any Agent recruited by any person other than Unit Manager, or pay or offer to pay any remuneration whatsoever to any such Agent for the purpose of securing takaful as specified in Clause 1 hereof.
- The Unit Manager shall maintain a place of business at such place or places approved by the Takaful Operator.
Where applicable, it shall be a condition precedent to this Contract that the person(s) named below shall at all times actively participate in the Unit Manager’s business and shall exercise majority control of the Unit Manager
Name: Candidate's Name             Position: Unit Manager
- The Unit Manager is responsible to the Takaful Operator for all monies, property or securities received or paid to the Unit Manager or any Agent recruited by or transferred to him for and/or on behalf of the Takaful Operator or any officer or employee of the Unit Manager and the Unit Manager shall ensure where required by the Takaful Operator’s certificate and by Clause 19 hereof that a receipt is issued to any persons paying or sending such monies, property or securities and the Unit Manager shall be liable to inform the Takaful Operator of the receipt or payment of such monies, property or securities and to ensure that the Unit Manager’s Agents follow the same practice. Provided always that where the Unit Manager co-operates with the Takaful Operator for the recovery of such monies, properties or securities misappropriated by Agents recruited or transferred to him, the Takaful Operator shall not recover such monies, properties or securities from the Unit Manager.
- The Unit Manager shall not deal with or use for any purpose whatsoever any monies, property or securities received by him pursuant to Clause 16 hereof and shall be liable to the Takaful Operator to make good by way of full restitution and/or indemnity upon any demand by the Takaful Operator for any default or failure of whatever nature, to make payment of any monies, property or securities whether so received by the Unit Manager (or other Unit Manager who was one of his Agents) or any Agent recruited by or transferred to him or any staff which he/she may have engaged.
- The Unit Manager shall forthwith forward and/or pay all monies, property or securities received, to the Takaful Operator under this Agreement, and in accordance with the Takaful Operator's certificate as shall from time to time be in force and shall remain liable to the Takaful Operator for all such monies, property or securities until such time as the Takaful Operator has received and acknowledged receipt hereof.
- The Unit Manager has no authority to issue, make, alter, vary, or discharge any contract, certificate or receipt, nor waive any forfeiture, nor incur any liability against the Takaful Operator, nor receive any monies due or to become due to the Takaful Operator, except on contribution receipts and notes sent to the Unit Manager for collection and then only provided that the terms and provisions contained in said receipts and notes shall be strictly complied with and the Unit Manager has no authority to credit or remit contributions not actually received in accordance with this Contract and the instructions of the Takaful Operator, and his/her authority and powers shall extend no further than as expressly stated in this Agreement.
The Unit Manager shall not without the prior written consent of the Takaful Operator:-
- publish or cause to be published any advertisement in respect of the Takaful Operator or any other takaful takaful operator in any newspapers, magazine or other publication whatsoever;
- issue a press release, hold a press conference or speak to the media in respect of the Takaful Operator, its certificate holders or any other takaful takaful operator; and
- issue, distribute or cause to be issued or distributed any circular or write or cause to be written any letters to any newspapers, magazine or publication in respect of the Takaful Operator or any other takaful takaful operator;
- If any lawsuits shall be brought against the Takaful Operator as a consequence of any unauthorised action, publication or statement of the Unit Manager whether by himself, or any staff which he may have engaged, the Unit Manager shall save harmless the Takaful Operator from and indemnify and keep indemnified the Takaful Operator against all costs and damages arising therefrom or incidental thereto.
- Should the Takaful Operator decide to make provision for or offer any office accommodation to the Unit Manager or his Agency Leaders or his Agents, such offer shall not be construed to impose upon the Unit Manager, his Agency Leaders or Agents any legal obligation to take up the offer or to utilise the same.
- The Takaful Operator shall be entitled to determine the general framework of its organisational and business policies within which persons independently contracting with the Takaful Operator, which shall include Agents, and Agency Leaders, shall be engaged. Subject to this observance of the Takaful Operator's policies, the terms and conditions of this Agreement, and business decorum and propriety, the Takaful Operator shall not control the methodology of the Unit Manager's performance of his obligations in this Contract nor shall the Takaful Operator dictate or regulate the hours within which the Unit Manager and/or his Agency Leaders and/or Agents shall perform their contractual obligations herein.
This Contract may be terminated by the Takaful Operator upon the Takaful Operator being satisfied after due investigation of the occurrence of any of the following events whereupon all rights and entitlements of the Unit Manager under this Contract (and under any previous or concurrent contracts), including but not limited to the rights to commissions on all contributions or renewal contributions shall forthwith cease:-
- Should the Unit Manager be in breach of any of the terms or conditions of this Contract or fail to comply with Clauses 16, 17 and 18 hereof;
- Should the Unit Manager or the Principal Officer named in Clause 15 hereof where applicable, cease to maintain an Agent’s Contract with the Takaful Operator whether by reason of termination for breach thereof or for any other reason whatsoever;
- In the event of fraud, dishonesty, breach of trust, any unlawful conduct or bankruptcy or winding up if applicable or entering into an arrangement with his creditors;
- Should the Schedule referred to in Clause 10 hereof cease to subsist pursuant to Clause 11 hereof;
- Should the Unit Manager act in any way contrary to the interest of the Takaful Operator and its certificate holders;
- If the Unit Manager makes a misrepresentation to any person in securing family takaful business or in inducing the Takaful Operator to accept a proposal;
- If the Unit Manager commits a material breach of the Takaful Operators Code of Ethic and Market Conduct, Market Conduct Guidelines, MTAs Code of Ethics and Conduct or any other code, guideline, rule or law that may be applicable from time to time as issued by the relevant regulatory authorities and which the Unit Manager is required to comply with in the performance of this Agreement;
- If the Unit Manager fails to meet any target, set in good faith for him by the Takaful Operator in the performance of this Contract including without limitation any production target;
- If the Unit Managers agency contract with any of the Takaful Operators affiliates is terminated due to fraud, dishonesty, breach of trust, any unlawful conduct, misrepresentation or violation or breaches of Code of Conduct, guideline, circular, rule or law.
- Such other reasons or grounds as may be determined by the Takaful Operator from time to time after due consultation with the relevant Agency Association and which is notified to the Unit Manager in writing.
- The Unit Manager shall be entitled to terminate this Contract by giving the Takaful Operator thirty (30) days' written notice of his intention to terminate the same.
The Takaful Operator shall have the right to suspend the Unit Manager from performing functions under this Contract during any investigation by the Takaful Operator into any allegations or complaints against the Unit Manager for such reasonable period as the Takaful Operator deems necessary for purposes of concluding its investigations. During this period of suspension, any commissions or other payments which are payable to the Unit Manager shall be withheld from payment to the Unit Manager by the Takaful Operator (“the Withheld Sum”) with due notice to the affected Unit Manager and Leader for a period of 21 working days pending the outcome of the investigation for the purposes of reimbursing the monies at risk, possible loss or recovery. In cases where the amount at risk is quantifiable, this amount shall be the Withheld Sum. In the event that:
- The investigations find that the Unit Manager has not caused any loss to the Takaful Operator, the Withheld Sum shall be released to the Unit Manager.
- The investigations find that the Unit Manager has caused loss to the Takaful Operator, then without prejudice to the Takaful Operators other rights against the Unit Manager, the Takaful Operator shall be entitled to set-off the amount of its loss against the Withheld Sum before releasing the balance amount of the Withheld Sum, if any, to the Unit Manager.
- Subject to Clause 11 hereof, if after the effective date of termination of this Agreement, the Takaful Operator accepts any application from the Unit Manager, all such transactions will be governed by the same terms and conditions as this Contract provides in so far as those terms and conditions are applicable but no such acceptance of applications shall be construed as a renewal or holding over of this Agreement.
- The Unit Manager hereby agrees that upon his ceasing to be a Unit Manager and/or its Principal Officer where applicable ceasing to be an Agent of the Takaful Operator whether by effluxion of time or otherwise the Takaful Operator shall be entitled to publish notices in the local newspapers or dispatch correspondence notifying its certificate holders and the general public that the Unit Manager has ceased to be a Unit Manager and/or Agent of the Takaful Operator, and is therefore not authorised to transact any business on behalf of the Takaful Operator or collect any contributions or other payments on behalf of the Takaful Operator or in any way bind the Takaful Operator.
- In the event the Unit Manager fail to provide services to any certificate holders who is the Unit Managers customers after the Unit Manager has been requested to do so in writing by the Takaful Operator three (3) consecutives times with notice to the Unit Managers Leader, the Unit Managers Leader shall have the right to assign the affected certificate holder to himself to another agent of the Takaful Operator PROVIDED ALWAYS that the commissions and any overriding will remain with the sitting Unit Manager and his respective Leader. In the event the Takaful Operator assigns a certificate holder to the Unit Manager and the Unit Manager fails to provide services at least once a year to the said certificate holder or if the said certificate holder has not purchased any new takaful plan through the assigned Unit Manager within 3 years from the date it was assigned to the Unit Manager, the Leader shall have the right to reassign the affected certificate holder to himself or to another agent of the Takaful Operator PROVIDED ALWAYS that the commissions, if any will be due to the Agent who the certificate has been assigned or reassigned to, as the case may be, and any overriding will be payable to the respective Leader whose Agent the certificate was assigned or reassigned to, as the case may be.
- The Takaful Operator shall also have the right to assign the Unit Managers customer to another agent in the event the Unit Manager is no longer able to service the certificate holders due to valid reasons like the Unit Manager becoming incapacitated, PROVIDED ALWAYS that the Unit Manager will continue to receive commission in relation to the affected certificate holder. Providing service shall include but not limited to assisting the certificate holder making enquiries on their certificate, effecting change of information and claims.
- The Unit Manager shall act and conduct himself in strict compliance with the terms and conditions of this Agreement. Any failure or omission on the part of the Takaful Operator to take any immediate action on any breach of any of the Terms and Conditions of this Contract on the part of the Unit Manager shall not be construed as a waiver of the Takaful Operator’s rights to terminate this Contract forthwith or pursue any remedies available to it under the laws in force from time to time, or be construed as consent or permission granted to the Unit Manager not to act in accordance with this Contract.
- The Unit Manager shall not pay or allow or offer to pay or allow as an inducement to any person to insure, any rebate of contributions or any inducement whatsoever not specified in the certificate; nor shall the Unit Manager make any representation or incomplete comparison for the purpose of inducing a certificate owner in this or any other takaful operator to convert, lapse, forfeit or surrender his takaful therein, nor shall the Unit Manager endeavour to induce any other representative of the Takaful Operator to leave its service. This clause shall in every respect survive the termination of this contract for a period of one year thereafter and the Unit Manager shall remain liable to the Takaful Operator in the event of any breach and irrespective of any other rights the Takaful Operator may have in the event of a breach of this clause the Takaful Operator shall have the right to withhold any monies otherwise due to the Unit Manager.
- The Unit Manager shall not enter into any arrangement or induce any certificate holder or any other person to make any takaful claim of whatever nature which is not a proper and valid claim and the Unit Manager will not receive, attempt to receive or accept any monies whether in full or in part paid by the Takaful Operator pursuant to a validly proved claim or settlement thereon.
- This Contract shall be assignable by the Takaful Operator in whole or in part to any successor or affiliated takaful operator, however, the Unit Manager will not assign or purport to assign any right or interest which the Unit Manager may have herein without the prior written consent of the Takaful Operator. Such consent by the Takaful Operator to any assignment shall not create or imply any acknowledgement or responsibility on the part of the Takaful Operator as to the validity, effect or sufficiency of such assignment.
- Notwithstanding Clause 17 hereof, the Takaful Operator shall have the right at all times to set off any debt, obligation or liability due or owing from the Unit Manager or any Agent recruited by or transferred to him or any staff he/she may have engaged, to the Takaful Operator against any sum due or owing to the Unit Manager, and the setting off shall not create a cause of action against the Takaful Operator that any sums of money are withheld from the Unit Manager when where is a debt or obligation as specified herein due to the Takaful Operator.
- This Contract and any attachments which form part of this Contract shall constitute the whole Contract between the parties hereto. Save for the Takaful Operator's right to change or revoke the Schedule or as otherwise expressly provided herein, all modifications to this Contract shall have no force or effect unless and except that they are expressed in writing, and duly executed by the Takaful Operator and the Unit Manager.
- This Contract supersedes and determines any agreements previously entered into between the Unit Manager and the Takaful Operator whether in the capacity as Unit Manager or otherwise, except such Agent’s Contract as may have been entered into between the Unit Manager and the Takaful Operator which Agent’s Contract shall remain in full force and effect until terminated in accordance with the terms thereof.
- Any notice given by either party hereto shall be deemed to have been sufficiently given if sent by facsimile to the party's known facsimile number or by registered post to the last known address of the Unit Manager or the address as appearing herein or to the registered office address of the Takaful Operator's office as the case may be. A notice shall be deemed to have been received by the party to whom it is addressed in the case of a facsimile, on the date it is sent but provided that a signed hard copy of such facsimile will be sent in addition to the facsimile, and in the case of notice by registered post, two (2) calendar days after the notice is posted (excluding the date of posting).
- This Contract shall be construed and governed by the laws in force in Malaysia.
- Headings used in this Contract are for reference only and do not affect the construction of this Contract or have any binding legal effect.
SUBMISSION OF APPLICATIONS
NO EMPLOYMENT RELATIONSHIP
APPOINTMENT OF AGENCY LEADERS BY THE TAKAFUL OPERATOR
REMUNERATION AND CONTINUANCE OF AGREEMENT
PLACE OF BUSINESS
RESPONSIBILITY FOR MONIES AND PROPERTY
NO ALTERATIONS OF DOCUMENTS
NO ADVERTISING OR PUBLICATION BY Unit MANAGER
OFFICE ACCOMMODATION AND BUSINESS CONDUCT
FAILURE OF UNIT MANAGER TO SERVICE THE CERTIFICATEHOLDERS
COMPLIANCE WITH AGREEMENT
SERVICE OF NOTICE