Takaful UM Contract

FOREWORD

One of the more prominent endeavours Takaful Intermediaries undertake is to create a healthy and high integrity business environment. It is necessary to ensure that both the interests of the Member Companies and the benefits to the public are protected. Thus, the Takaful Intermediaries must observe a uniform set of ethics which forms the basis of the principles and business of Takaful.

With this Code of Ethics (Code), the Malaysian Takaful Association (MTA) aims to introduce a universal set of ethics for all registered Takaful Intermediaries. This Code is the basic guideline for Takaful Intermediaries to observe in their practice so that the industry is seen to value and uphold the interests of all its stakeholders, namely, the shareholders, the member companies, the Takaful participants, and the Intermediary themselves.

OBJECTIVES

This Code is formulated with a view to attain the following objectives:

i.	To provide a minimum standard of conduct for the Takaful Intermediaries while keeping to the principles and practice of meeting the objectives, missions and requirements of the Takaful Intermediaries;
ii.	To create a healthy, transparent and fair business practice;
iii.	To inculcate best practice standard of conduct amongst the Takaful Intermediaries; and
iv.	To ensure that the Takaful Intermediaries constantly conduct themselves in a manner specified by the Code.

SCOPE

i.	This Code is applicable to all Takaful Intermediaries.
ii.	Where any provision of this Code 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 by any laws or other agreements.
iii.	This Code is subject to the Islamic Financial Services Act 2013 (IFSA 2013) applicable law or regulation and any other relevant existing laws or guidelines.

INTRODUCTION

Summary of Title

This Code contains the code of ethical conduct for as defined herein.

Interpretation

i.

For the purposes of this Code unless the context otherwise specifies.

Bank

Refers to Bank Negara Malaysia

IFSA 2013

Islamic Financial Services Act 2013.

Relatives

Persons related to a person including

	the spouse of the individual;
	the brother or sister of the individual, or of the spouse of the individual;
	any lineal ascendant or descendant of the individual, or of the spouse of the individual;
	the spouse of any individual referred to in paragraph (b) or (c);
	any lineal descendant of an individual referred to in paragraph (b) or (d);
	any uncle, aunt or cousin of the individual, or of the spouse of the individual; or
	any spouse, or any lineal ascendant or descendant, of an individual referred to in paragraph (f);

Shariah

Refers to the resolution of Shariah used by the Takaful Operators' Shariah Committee or the Shariah Advisory Council of Bank Negara Malaysia, where applicable.

Shariah Committee

Refers to the Takaful Operators’ Shariah Committee appointed according to the provisions of their Memorandum and Articles of Association.

Takaful Business

Refers to all Takaful Business as defined in IFSA 2013

Takaful Intermediaries

"refers to a person who does all or any of the following: -

	solicits or obtains a proposal for a Takaful certificate on behalf of a Takaful Operator;
	offers or assumes to act on behalf of a Takaful Operator in negotiating a Takaful certificate; or
	does any other act on behalf of a Takaful Operator in relation to the issuance, renewal, or continuance, of a Takaful certificate.

For clarity purposes, Takaful Intermediaries include corporate bodies and individuals.

Takaful Operator

Refers to a company licensed under the IFSA 2013 to carry out the business of Takaful.

ii.

Words importing the singular include the plural and words importing the masculine gender include the feminine and neuter genders. Words referring to a person include individuals and corporations related company, associates and subsidiary.

iii.

References to the provisions of any law refers includes a reference to any amendment of the law and re-enactments.

iv.

Headings of parts and sections in the Code are intended only for the ease of comprehension and should not be taken into account in the interpretation of the provisions of this Code.

v.

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.

CODE OF ETHICS

Summary of Title

i.	Each Takaful Intermediary must conduct and carry out all Takaful transactions, business, operations and activities according to the IFSA 2013 and observe any existing laws or guidelines.

Compliance

i.	All Takaful Intermediaries must at all times comply with every guideline and rule in this Code;
ii.	The Takaful Intermediaries must comply with and observe to all policies and procedures as prescribed by the Takaful Operator in which the Takaful Intermediaries are duly registered with.

Specific Principles of Transaction

i.	All Family Takaful Intermediaries are allowed to represent only one (1) Takaful Operator and shall not represent another Takaful Operator during the same period.
ii.	All General Takaful Intermediaries are permitted to represent two (2) Takaful Operators and are not allowed to represent more than two (2) Takaful Operator during the same period.
iii.	Banca Takaful Intermediaries are allowed to represent more than one (1) Takaful Operator for Family Takaful Business or General Takaful Business.

General Principles of Transaction

Takaful Intermediaries MUST:

i.	Sign a declaration of compliance that they shall be bound by this Code or any guidelines issued from time to time;
ii.	When dealing with any prospective participant the public, to inform them that their latest status can be viewed via the MTA website;
iii.	Ensure that the proposed plan or scheme meets with the participants’ needs and requirements;
iv.	Provide consultation services based on their expertise and must refer to the Takaful Operator as and when necessary;
v.	Ensure all information given by a prospective participant to the Takaful Operator is confidential in accordance to the Code of Practice on Personal Data Protection for the Insurance and Takaful Industry in Malaysia regardless whether they are still Takaful Intermediary or have ceased their representation with the Takaful Operator ;
vi.	Not to disclose or utilise personal information, trademark, correspondence and member companies’ accounts or business;
vii.	Provide comprehensive details and differences of each product when comparing products;
viii.	Observe the principles and values set out and compete in a healthy manner in expanding the Takaful market and the business;
ix.	Communicate with participants with fairness and honesty;
x.	Ensure that participants do not suffer any losses whether through any act or omission of the Intermediary;
xi.	Agree to be bound by Schedule 7 of the IFSA 2013;
xii.	Provide extensive after sales services to participants;
xiii.	Ensure that any advertisement or public announcement is clear and does not confuse or mislead the public and participants; and
xiv.	Be on a full-time basis if they are appointed as a Takaful Operator’s Agency Manager.

Takaful Intermediaries are PROHIBITED from:

i.	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;
ii.	Making any advertisement of the Takaful Intermediaries themselves or of their agency through any print or electronic media such as newspapers, the internet or others without Takaful Operator’s explicit consent;
iii.	Using a job title or designation other than that allowed by the Takaful Operator;
iv.	Misleading the public by causing them to believe that Takaful Intermediaries are the Takaful Operator or a Takaful protection provider, or that the Takaful products are provided by the Takaful Intermediary;
v.	Making any derogatory remarks or statements on or of other insurance companies or other Takaful Operators;
vi.	Persuading participants to terminate or cancel existing certificates, unless such existing certificates do not meet the needs of the participant;
vii.	Using the names of any proxy including that of relatives in order to secure the contract as a Takaful Intermediary with the intent of conducting any transaction on behalf of other Takaful Operators;
viii.	Misusing any information obtained from the Takaful Operator for purpose other than in the interest of that Takaful Operator; and
ix.	Imposing any additional or unauthorised charges, other than that already imposed by the Takaful Operator unless the prospective participants are informed beforehand about the amount and the purpose of such additional charge to be imposed.

Explanation of the Takaful Contract

Takaful Intermediaries MUST:

i.

Explain all provisions contained in a proposal form (s) or certificate to ensure that the participants fully understand the extent of his involvement and consequences ;

ii.

Give an explanation of all key terms and the exemptions contained in the certificate;

iii.

Specific provisions for Family Takaful contracts:

	Focus on the long-term nature of the certificate and explain to the prospective participant 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 is dependent on variable factors such as investment performance, a clear illustration of the expected variable profits 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;
	Explain that the illustrations of profits to be gained from investment are based on certain assumptions. The future profits are not guaranteed and therefore, such profits may be lower or higher than current profits;
	Provide prospective participants with illustrations prepared by the Takaful Operators. Takaful Intermediaries must provide a complete illustration to a prospective participant during discussions;
	Not amend the illustrations provided by the Takaful Operators or increase the rate of investment profit without explicit consent from the relevant Takaful Operators;
	Not add to or highlight certain favourable aspects only; and
	Provide accurate information without any intention of fraud or to mislead the prospective participant.

iv.

Specific provisions for General Takaful contracts:

	Not to assume any risks in accordance to Section 96¹ of IFSA 2013 until payment has been accepted by the Takaful Operator;
	Remit the contribution for Takaful cover that has been paid to the Takaful operator without delay. The remittance of the said contribution to the Takaful Operator must be in accordance to Section 96 of IFSA on assumption of risk ; and
	Must not cancel a Takaful cover except for cases where the remittance of participant’s payment was not successful.

Disclosure of Underwriting Information

When receiving a completed proposal form or any other materials, Takaful Intermediaries must:

i.	Inform the participants about the importance of correct and complete disclosure of all material and relevant facts that are required by the Takaful Operator for the formation of the contract and any risks to be undertaken by the Takaful Operator;
ii.	Explain to the participants the completeness and accuracy of that all answers or statements are the responsibility of the participants; and
iii.	Provide an explanation of Schedule 9 Part 2 (4) (5) (6) and (7) of the IFSA 2013 whereby the participants 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 participants.

Accounts and Financial Aspects

i.	All contributions or monies collected on behalf of the Takaful Operator must be directly forwarded to the Takaful Operator without delays.
ii.	Takaful Intermediaries are advised to keep their own proper records for contributions or monies received on behalf of the Takaful operator.

Subject to Laws and Other Regulations

i.	Takaful Intermediaries are subject to the provisions of the IFSA 2013 and any relevant laws and regulations governing the Takaful business issued by BNM, Takaful Operators and other authorities.
ii.	Takaful Intermediaries are subject to the fulfilment of MTA Minimum Requirements for the Continuous Professional Development (CPD) annually.

The Importance of Ethics for Takaful Intermediaries

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 Takaful Intermediaries run their Takaful Business on the following principles:

i.	Fairness
ii.	Honesty
iii.	Trustworthiness
iv.	Responsible
v.	Transparency

Disciplinary Procedures and Penalties

Any breach of the Code must be reported to MTA. Should there be a breach of the Code by any Takaful Intermediary; MTA will initiate the necessary disciplinary action against the Takaful Intermediary.
Amendments to the Code

MTA has the right to rescind, modify, change or amend any part or the whole of this Code from time to time by way of prior notices. Takaful Intermediaries are bound and subject to any future amendments made.

AUTHORISATION

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 certificates 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 certificates 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.

SUBMISSION OF APPLICATIONS

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.

TERRITORY

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.

NO EMPLOYMENT RELATIONSHIP

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.

APPOINTMENT OF AGENCY LEADERS BY THE TAKAFUL OPERATOR

The Takaful Operator, at its discretion and with the concurrence of the Unit Manager, may appoint other Agency Leaders from amongst those persons 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 District Manager’s Contract or Unit Manager’s Contract with the Takaful Operator as may be applicable in the context hereto.

REMUNERATION AND CONTINUANCE OF CONTRACT

The Takaful Operator will pay and the Unit Manager agrees to accept as compensation in full for all services rendered under this Contract, the payments set forth in the Agency Compensation Handbook (hereinafter referred to as Annual Schedule of Production Incentives and/or Schedule).
The Schedule referred to in Clause 11 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.

PLACE OF BUSINESS

The Unit Manager shall maintain a place of business at such place or places approved by the Takaful Operator.

PRINCIPAL OFFICER

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

RESPONSIBILITY FOR MONIES AND PROPERTY

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 20 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 17 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 may have engaged.
The Unit Manager shall forthwith forward and/or pay all monies, property or securities received, to the Takaful Operator under this Contract, 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.

NO ALTERATIONS OF DOCUMENTS

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 authority and powers shall extend no further than as expressly stated in this Contract.

NO ADVERTISING OR PUBLICATION BY UNIT MANAGER

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 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 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 publication, medium or any regulatory authority in respect of the Takaful Operator or any other 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.

OFFICE ACCOMMODATION AND BUSINESS CONDUCT

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 Contract, 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 Agents shall perform their contractual obligations herein.

TERMINATION AND SUSPENSION

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 17, 18 and 19 hereof;
	Should the Unit Manager or the Principal Officer named in Clause 16 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 11 hereof cease to subsist pursuant to Clause 12 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 Operator’s Code of Ethic and Market Conduct, Market Conduct Guidelines, MTA’s 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 Contract;
	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 12 hereof, if after the effective date of termination of this Contract, 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 Contract.
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.

FAILURE OF UNIT MANAGER TO SERVICE THE CERTIFICATE HOLDERS

In the event the Unit Manager fails to provide services to any certificate holders who is the Unit Manager’s 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 Manager’s Leader, the Unit Manager’s 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 participated in 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 Manager’s 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.

COMPLIANCE WITH CONTRACT

The Unit Manager shall act and conduct himself in strict compliance with the terms and conditions of this Contract. 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 further agrees to observe all rules, guidelines, conditions, policies, directives, and circulars including the Takaful Operator's Market Conduct Guidelines promulgated from time to time by the Takaful Operator.

NO INDUCEMENT

The Unit Manager shall not pay or allow or offer to pay or allow as an inducement to any person to participate in takaful plan, 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.

ASSIGNMENT

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 shall 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.

SET-OFF

Notwithstanding Clause 18 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 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.

WHOLE CONTRACT

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.

SERVICE OF NOTICE

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).

GOVERNING LAW

This Contract shall be construed and governed by the laws in force in Malaysia.

HEADINGS

Headings used in this Contract are for reference only and do not affect the construction of this Contract or have any binding legal effect.
Where the context so permits, words importing the singular number only shall include the plural number and vice versa and words importing the masculine gender only shall include the feminine gender and neuter gender.

IN WITNESS WHEREOF the Takaful Operator and the Unit Manager have executed this Contract in duplicate.

Applicant Name

Applicant Identification No.

Applicant Signature Date & Time

Address

witness Name*

Witness Identification No.*

witness Signature Date & Time

Name:	Candidate's Name
Position:	Unit Manager

CODE OF ETHICS FOR UM TAKAFUL

TAKAFUL UM CONTRACT - TERMS & CONDITIONS

Signature of applicant*