3. TAKAFUL ACT 1984
(PART 1)
β’ Under section 2 of this act, is a detailed information of the various terminology used
in the business from the Malaysian legal point of view such as βoperatorβ,
βparticipantβ, βtakaful benefitsβ, βtakaful certificatesβ and so on.
β’ Section 3 classifies the type of takaful business (family takaful and general takaful)
and the constructions of each business
7. β’ Section 42 sets a requirement for actuarial investigation into the family takaful fund
to meet its benefits. The findings must be reported to the Director General.
β’ If a company operating as a takaful operator is winding up, they must discharge
their liabilities before the winding exercise(Section 49)
β’ However, a co-operative society which acts as a takaful operator is not allowed to
wind up the takaful business except with the consent of the Director General
(Section 50)
β’ Nevertheless, transferring part or whole of a takaful business between organizations
is allowed (Section 51)
TAKAFUL ACT 1984
(PART III : RETURNS, INVESTIGATION, WINDING
UP & TRANSFER OF BUSINESS)
8. β’ Among all, takaful operators and their intermediaries are required to comply with
the advice of the Syariah Advisory Council (Section 53A)
β’ The minimum age for the a participant to enter a takaful contract in Malaysia shall
be 18 years old (Section 64)
β’ Section 65 allows the takaful benefits upon death of the participant to be paid to
the entitled claimant without the production of probate (will) and the takaful
operator will be discharged form their liability on the matter.
TAKAFUL ACT 1984
(PART IV : MISCELLANEOUS AND GENERAL
9.
10. β’ The IFSA 2013 or Islamic Financial Service Act 2013 came into
effect on 31 June 2013 after it was approved by a Parliament.
Basically The it repeals the Islamic Banking Act 1983 (IBA)
and the Takaful Act 1984 (TA) and combines the Islamic
financial and takaful services under the aforementioned acts
in a similar fashion. Means that those two Acts are no longer
use nowadays.
11.
12.
13.
14.
15.
16.
17.
18. SHARIAH ADVISORY COUNCIL
β’ The Shariah Advisory Council of Bank Negara Malaysia (SAC) was established in May
1997 as the highest Shariβah authority in Islamic finance in Malaysia
β’ The SAC has been given the authority for the ascertainment of Islamic law for the
purpose of Islamic banking, takaful, Islamic financial business, Islamic development
financial business or any other business which is based on Shariah principles and is
supervised and regulated by Bank Negara Malaysia.
β’ As the reference body and advisor to BNM on Shariah matters, the SAC is also
responsible for validating all Islamic banking and takaful products to ensure their
compatibility with the Shariah principle.
β’ In addition, it advises BNM on any Shariah issue relating to Islamic financial
businesses or transaction BNM as well as other related entities.
