ZURICH TAKAFUL MALAYSIA BERHAD

FRAMEWORK
OF TAKAFUL
INDUSTRY IN
MALAYSIA

BADRUL HISYAM BIN AHMAD FADALULLAH

DANIA IRDYNA BINTI RIDHUAN
NUR ATHIRAH BINTI SAMAD
BMF20-07-084 BMF20-07-024

ALISSA IRDINA BINTI AYOB SALLEH WAFIY AIZUDDIN BIN IDRUS
BMF20-07-079 BMF20-07-002

DATE OF SUBMISSION:
12 JUNE 2022

INTRODUCTION

BACKGROUND OF THE TAKAFUL INDUSTRY IN MALAYSIA

The emergence of the Takaful industry in Malaysia was
motivated by the Muslim public's desire for a Shariah-

compliant alternative to replace conventional, and
supplement operations of the Islamic bank.

The Malaysian National Fatwa Committee determined that
insurance policy in its current form is a negative concept

due to the ingredients of Gharar (uncertainty), Riba' (usury),
and Maysir (fraud).

Participants donate a sum of money to a common pool, that
will be used to mutually aid one another in times of need.

BACKGROUND OF THE TAKAFUL INDUSTRY IN MALAYSIA

Underlying Concept



Takaful



Tabarru'



Mudharabah/Wakalah

LEGAL FRAMEWORK OF MALAYSIAN TAKAFUL INDUSTRY

KEY MILESTON

1984: The establishment of Takaful Malaysia on 29 November 1984. The company commenced
operations in July 1985.
1985: The official launch of Takaful by the Prime Minister of Malaysia, YAB. Tun Dr. Mahathir Mohamad.
1996: Takaful Malaysia became a public limited company with its shares listed on the Main Board of
Kuala Lumpur Stock Exchange.
2004: Takaful Malaysia celebrated its 20th year in business.
2009: Takaful Malaysia marked its 25th anniversary by unveiling a new corporate logo. The occasion was
attended by YB Dato' Seri Ahmad Husni Mohamad Hanadzlah, Minister of Finance II.
2011: Takaful Malaysia won the prestigious Brand Laureate Award 2010-2011 in the Corporate Branding
Category for Best Brands in Financial Services- Insurance Takaful for the second year in a row.
2012: Dato' Mohamed Hassan Kamil, Group Managing Director of Takaful Malaysia, received the 'Jewels
of the Muslim World' Award in appreciation of his contribution to the development of the Takaful and
Islamic Finance Industry.
2013: Takaful Malaysia was named Malaysia's Best Takaful Company at the 7th International Takaful
Summit in Cairo.

LEGAL FRAMEWORK OF MALAYSIAN TAKAFUL INDUSTRY

KEY MILESTON

2013: Takaful Malaysia was named the 'Best Performing Stock' in the Finance Sector at the renowned annual
Edge Billion Ringgit Club Corporate Awards 2013. Takaful Malaysia is the first Islamic financial institution to be
recognized by The Edge Billion Ringgit Club (BRC) Corporate Awards.
2014: Takaful Malaysia was named Best Takaful Company in Malaysia for the second time at the 8th
International Takaful Summit 2014, which was held in Abu Dhabi.
2014: At the Edge Billion Ringgit Club Corporate Awards 2014, Takaful Malaysia was among the top three
winners in the following categories under the Finance Sector:
- No. 2 for the ‘Best Performing Stock -Highest returns to shareholders over 3 years’
- No. 3 for the ‘Most Profitable Company- Highest return on equity over 3 years’
- No. 3 for the ‘Highest Profit Growth Company - Highest compound growth in profit before tax over 3 years’
2016: Takaful Malaysia won the 'Best Takaful Company in Malaysia' award for the fourth time in a row at the
10th International Takaful Awards 2016 in London.
2016: Takaful Malaysia received The Edge-BRC Best Performing Stock Award (Highest Returns to
Shareholders Over Three Years) for the second time in the Finance sector at the renowned annual awards
presentation of the 2016 Edge Billion Ringgit Club Awards.
2016: Takaful Malaysia got the Highest Takaful Company 2016 Award at the Global Islamic Finance Awards
presentation on September 29, 2016 in Jakarta.

LEGAL FRAMEWORK OF MALAYSIAN TAKAFUL INDUSTRY

KEY MILESTON

2017: Takaful Malaysia was named the 'Best Takaful Company in Malaysia' for the fifth time in a row at the 11th
International Takaful Summit in London.
2017: Takaful Malaysia won The Edge-BRC Highest Returns to Shareholders Over Three Years Gold Award for the
third time, and the second year in a row, as well as The Edge-BRC Highest Return on Equity Over Three Years
Silver Award in the Finance sector at the prestigious annual awards presentation of the 2017 Edge Billion Ringgit
Club Awards.
2018: Takaful Malaysia officially established an online sales platform called "Click for Cover" as the first step in its
digital insurance venture. Takaful Malaysia's digital presence was expanded with the introduction, which provided
a streamlined consumer experience when purchasing insurance products online.
2019: The Malaysian Takaful Association's Takaful Star Nite Awards 2019 featured an Innovation Award in the
Special Awards Category. The Malaysian Takaful Association's Takaful Star Nite Awards 2019 featured the Race for
Cover Award.
2019: The Edge Billion Ringgit Club & Corporate Awards 2019 presented The Highest Return on Equity Over Three
Years Award in the financial services sector. The Edge Billion Ringgit Club & Corporate Awards 2019 presented
The Highest Growth in Profit After Tax Over Three Years Award in the financial services sector.
2020: Takaful Malaysia received the Highest Returns to Shareholders Over Three Years and the Highest Return on
Equity Over Three Years accolades at The Edge Media Group's annual Billion Ringgit Club 2020 ("BRC") awards
ceremony.
2021: iBanding.com named Takaful Malaysia the Best Motor Takaful Company in Malaysia 2021/2022.

LEGAL FRAMEWORK OF MALAYSIAN TAKAFUL INDUSTRY

HISTORY & DEVELOPMENT



The development of the takaful industry in Malaysia in the early
1980s was inspired by the prevailing needs of the Muslim public for a

Shariah-compliant alternative to conventional insurance:



• Life insurance in its present form is a void contract due to the
presence of the elements of Gharar (uncertainty), Riba’ (usury) and

Maysir (gambling)
• A Special Task Force was established by the Government in 1982 to
study the viability of the setting up of an Islamic insurance company

• The first takaful operator was incorporated in Malaysia in
November 1984

LEGAL FRAMEWORK OF MALAYSIAN TAKAFUL INDUSTRY

HISTORY & DEVELOPMENT

3 PHASES OF DEVELOPMENT
In developing the takaful industry in Malaysia, Bank Negara Malaysia has
adopted a gradual approach which can be divided into three phases:

• Phase I (1984-1992)
establishment of the basic infrastructure for the industry

• Phase II (1993-2000)
marked the introduction of competition with the entry of another takaful
operator

• Phase III (2001-2010)
began with the introduction of the Financial Sector Masterplan (FSMP) in 2001

REGULATORY & DEVELOPMENT OF TAKAFUL
INDUSTRY REGULATIONS

TAKAFUL ACT 1984 Shariah compliant alternate
conventional Insurance
Assits the operations of the
Islamic bank
Conventional have elements
of uncertainty, interest and
gambling
Takaful Act was passed in
1984

BODY

COMPANY’S HISTORY & BACKGROUND

MAA Takaful, provides Shariah compliant
insurance (Takaful) in Malaysia

The Company offers Takafulink, an investment-
linked family Takaful plan and CancerCare, a

medical plan that provides cancer coverage for
families

Part of Switzerland-based Zurich Insurance
Group

Effective 1 June 2018, focusing on the family
Takaful business only and has transferred its

general Takaful business to a newly-
incorporated entity

COMPANY’S HISTORY & BACKGROUND


1 July 2016, integration of ZTMB into the
ZTMB provides Zurich with Zurich process
appropriate licenses, products Combine ZTMB’s strong reputation, local
and infrastructure to enter the market knowledge and capability with Zurich’s
international brand together
Takaful market Uniquely positioned within Malaysia as it now
The company name change does offers a full range of Insurance and Takaful
solutions covering both conventional
not affect existing certificate products of Life and General Insurance as
holders and all terms well as Family Takaful and General Takaful; all
under a single brand
served by their respective ZTMB
agents or brokers

PEOPLE

NAZRUL HISHAM ABDUL HAMID
Chief Executive Officer

CIK HASNAH BINTI OMAR
Chairman of the Board

PEOPLE MATTHEW COTTREL
Director
JAN YOKE LAN
Director

DATUK DR HAFSAH BINTI HASHIM
Director

DR. MOHAMED FAIROOZ BIN
ABDUL KHIR
Director

PEOPLE

ASSOC. PROF. DR. MOHAMED
FAIROOZ BIN ABDUL KHIR

Chairman Shariah Committee

ASSOC. PROF. DR. ZULKIFLI HASAN PROF. DR ZURINA SHAFII
Member Member

DATIN DR WAN MARHAINI WAN AHMAD
Member

BUSINESS MODEL

LIFE PROTECTION TAKAFUL

DEFINITION BENEFIT ELIGIBLE FOR
Death Benefit
Zurich Malaysia has designed This plan's lowest entry
Takaful ProEssential, a family Disability Coverage Up to age is 14 days, and the
Maturity of Certificate maximum entry age is 60
takaful plan that offers Family Care Privilege years. The Participant,
comprehensive financial security Flexible Coverage Term however, should be at
upon death. Shariah-compliant Extend Your Coverage
least 16 years old.
plan also includes value added Enhance Your Protection
services such as Hajj by Proxy, Option

Qurban, Wakaf, and Charity.





Takaful ProEssential

MEDICAL PROTECTION TAKAFUL

DEFINITION BENEFIT MEDIPRO WORK

MediPro Medical Rider Comprehensive Medical Coverage MediPro Medical Rider
provides comprehensive Protection of up to RM2,000,000 provides comprehensive
medical coverage, up to
RM2,000,000 in protection with No Lifetime Limit medical takaful plans.
with no maximum limit, mental Mental Illness Coverage Each plan is further
illness coverage, and cancer Cancer Survivor Benefit subdivided into Bronze,
Hassle-free Hospital Admissions Silver, Gold, and Platinum
sufferer benefit..
Additional Benefits categories.





MediPro

TAKAFUL BUSINESS MODEL / SHARIAH CONCEPT APPLIED IN
SELECTED TAKAFUL PRODUCT

GOVERNANCE OF THE SELECTED External auditors before the audit
TAKAFUL OPERATOR AND commences, the nature and scope of
SHARIAH COMMITTEE
audit
RESPONBILITY AND Financial information presented by
ACCOUNTABILITY Management is relevant, reliable and
ADVISE THE BOARD AND THE
timely
COMPANY Provide oversight over Shariah review
ENDORSE SHARIAH POLICIES & related matters including the Shariah

PROCUDERS review plan on a yearly basis

PROFIT / LOSS AND PERFORMANCES

TAKAFUL ACT 1984 & IFSA 2013

SCOPE COVER BY TAKAFUL ACT 1984

TAKAFUL ACT 1984 & IFSA 2013

SCOPE COVER BY IFSA ACT 2013

DIFFERENCES BETWEEN TAKAFUL ACT 1984 & IFSA 2013

FEATURES

DIFFERENCES CURRENT OF TAKAFUL ACT
1984 AND IFSA ACT 2013

DIFFERENCES CURRENT OF TAKAFUL ACT
1984 AND IFSA ACT 2013

REFERENCES

Zurich. Health & Medical Takaful. Retrieved From:
https://www.zurich.com.my/en/takaful-products/protection/for-my-health
Zurich. MediPro. Retrieved From:
https://www.zurich.com.my/en/takaful-products/protection/for-my-health/medipro
Zurich Takaful. Statutory Financial Statements for the Financial Year Ended 31 December 2020. Retrieved From:
https://www.zurich.com.my/-/media/project/zwp/malaysia/docs/about-zurich/our-business-
performance/annual-reports/zurich-takaful-malaysia-berhad-annual-report-2020.pdf
Zurich. Term Takaful. Retrieved From:
https://www.zurich.com.my/en/takaful-products/protection/for-my-life
Zurich. ProEssential. Retrieved From:
https://www.zurich.com.my/en/takaful-products/protection/for-my-life/takaful-proessential

REFERENCES

Zurich. Health & Medical Takaful. Retrieved From:
https://www.zurich.com.my/en/takaful-products/protection/for-my-health
Zurich. MediPro. Retrieved From:
https://www.zurich.com.my/en/takaful-products/protection/for-my-health/medipro
Zurich Takaful. Statutory Financial Statements for the Financial Year Ended 31 December 2020. Retrieved From:
https://www.zurich.com.my/-/media/project/zwp/malaysia/docs/about-zurich/our-business-
performance/annual-reports/zurich-takaful-malaysia-berhad-annual-report-2020.pdf
Zurich. Term Takaful. Retrieved From:
https://www.zurich.com.my/en/takaful-products/protection/for-my-life
Zurich. ProEssential. Retrieved From:
https://www.zurich.com.my/en/takaful-products/protection/for-my-life/takaful-proessential

APPENDICES

PROESSENTIAL ZURICH TAKAFUL ZURICH TAKAFUL
MEDIPRO ZURICH TAKAFUL

Thank You

See You Next Time