Hibah in Takaful Industry

FACULTY OF MANAGEMENT AND MUAMALAH
SESSION I 2010/2011

HIBAH IN TAKAFUL INDUSTRY

PREPARED FOR:
USTAZ KHAIRUL ANWAR BIN AHMAD

PREPARED BY:

BACHELOR IN ISLAMIC FINANCE (BANKING)
(HONS)
FIQH MUAMALAH II
BIMM 5103
FARAH SULASTRY BINTI SUHAIMI
(09BB05028)
NUR ATIQAH BINTI ZAKARIA
(09BB05036)

BACHELOR IN ECONOMY AND FINANCE
(HONS)
FIQH MUAMALAH II
BIMM 5013
ROSWAHIDA BINTI AHMAD SHUBELI
(07BB03001)

TABLE OF CONTENTS

TITLE PAGE
ACKNOWLEDGEMENT 3
1.0 INTRODUCTION 4
1.1 THE HISTORYCAL DEVELOPMENT OF AL- TAKAFUL 4
1.1.1 DEFINITION 5
1.1.2 PRINCIPLE ON TAKAFUL 6
1.2 TREND IN TAKAFUL INDUSTRY 6
1.2.1 KEY TRENDS IN THE TAKAUL LANDSCAPE 6
1.2.2 SIGNIFICANT TREND IN TAKAFUL INDUSTRY 7
1.3 MODEL OF TAKAFUL 9
1.3.1 GENERAL TAKAFUL MODELS 9
1.3.2 FAMILY TAKAFUL MODELS 10
1.3.3 THE CONCEPT AND WORKING SYSTEM OF 11
TAKAFUL
1.4 GROWTH IN TAKAFUL INSUSTRY 12
1.4.1 TAKAFUL INDUSTRY GROWTH 14
1.4.2 CURRENT STATUS OF TAKAFUL INDUSTRY 16
1.5 COMPARISON BETWEEN TAKAFUL AND INSURANCE 16
2.0 THE CONCEPT OF HIBAH 17
2.1 HIBAH IN DEFINITION 17
2.2 ADVANTAGES OF HIBAH 18
3.0 HIBAH IN THE TAKAFUL INDUSTRY 19
3.1 HIBAH IN TAKAFUL 20
3.2 TAKAFUL IKHLAS SDN BHD 21
3.2.1 MODEL OF TAKAFUL IKHLAS 22
3.3 THE ISSUES OF HIBAH IN TAKAFUL INDUSTRY 24
4.0 CONCLUSION 27
5.0 RECOMMENDATION 28
BIBLIOGRAPHY 29
APPENDICES 30

2

ACKNOWLEDGEMENT

Assalamualaikum w.b.t

First and foremost, Alhamdulillah, praise be to Allah S.W.T, The Might for giving us
good health and strength to undergo and complete our assignment successfully. In
completing this assignment, there are many parties who kindly give us their
cooperation and guidance. Firstly, we would like to express our appreciation to
Knowledge Management Centre (IBFIM) and Takaful Ikhlas Sdn Bhd for giving us an
opportunity to get many valuable knowledge and experience.

Our gratitude also goes to our lecturer Ustaz Khairul Anwar Ahmad for his kindly
moral support and guidance. We also wish to express our sincere appreciation to
Ustaz Ahmad Termizi Bin Mohamed Din, Executive, Shariah Compliance Department
of Takaful Ikhlas Sdn Bhd for his advice and guidance.

Lastly, special thanks to our family and friends for their pray, encouragement, care
and full support. Finally, we would like to say our deepest gratitude to all people
around us for those who are involved directly or indirectly in completing this
assignment.

Truthfully,
FARAH SULASTRY BINTI SUHAIMI
NUR ATIQAH BINTI ZAKARIA
ROSWAHIDA BINTI AHAMAD SHUBELI

3

1.0 INTRODUCTION

Takaful is not a new concept. In fact, it has been practiced by Muslim
communities for the longest time ever. The objective of takaful is to guarantee to help
each other. The concept of takaful (Islamic insurance), where resources are pooled
to help the needy does not contradict Shari’ah principles.1 It is in line with the
principles of compensation and shared responsibilities among the community.
Basically takaful is a mutuality arrangement among the community members. And
the cooperative takaful way is seen as the unique alternative to avoid the elements of
gharar (uncertainty), riba (interest) and maisir (gambling), which makes conventional
insurance not acceptable to Muslim scholars.2

Some Muslims believe insurance is unnecessary, as society should help its
victims. Muslims can no longer ignore the fact that they live, trade and communicate
with open global systems, and they can no longer ignore the need for banking and
insurance. The demonstrates of how early clerical apprehensions were overcome to
create pioneering Muslim-friendly banking systems, and applies the lessons learnt to
a workable insurance framework by which Muslims can compete with non-Muslims in
business and have cover in daily life. It uses relevant Quranic and Sunnah extracts,
and the arguments of pro- and anti-insurance jurists to arrive at its conclusion that
Muslims can enjoy the peace of mind and equity of an Islamic insurance scheme.3

1.1 THE HISTORICAL DEVELOPMENT OF AL-TAKAFUL

Takaful is a growing and fast developing industry. The main reason behind
the introduction and development of takaful is to offer an Islamic and Shari’ah
compliant alternative to conventional insurance.4 Thus, similar to conventional
insurance, takaful is designed to provide protection and indemnity to both individuals
and corporate bodies against loss or hazards to their selves or properties.

Takaful (‫ )التكافل‬is an Islamic insurance concept which is grounded in Islamic
muamalat (banking transactions), observing the rules and regulations of Islamic law.5
This concept has been practiced in various forms for over 1400 years. Muslim jurists

1
http://www.mifc.com/publication/p.9.10.pdf
2
Ibid
3
Mohd. Ma’sum Billah, Islamic and Modern Insurance Principles and Practices, Ilmiah Publishers, 2003
4
Dr. Engku Rabiah Adawiyah Engku Ali, Essential Guide To Takaful (Islamic Insurance), CERT, 2008
5
What’s Takaful: A Guide To Islamic Insurance, 2008
4

acknowledge that the basis of shared responsibility in the system of aquila as
practiced between Muslims of Mecca and Medina laid the foundation of mutual
insurance.

Human society has in fact, practiced ‘insurance’ in one form or another since
time immemorial. The concept of protection against loss by natural hazard has been
tracked back by some historians to at least 215 B.C, when the Roman Government
were required by suppliers of military stores all risk of loss, arising from the attack of
enemies or from storms, to the supplies which they placed in the ships.

One the other hands, some people consider that it was the Pharaoh of Egypt
who invented the insurance principle when, on the advise of the Prophet Joseph, the
directed the latter to store grain in the years of abundance to meet the demand the
lean years.6

Similarly, each Arab ethnic group tied by blood ties considered the loss of any
individual member, including his liability towards the payment of blood money, as its
own and was obliged by custom and tradition to come to his rescue and take suitable
measures to give rise cover such loses or liabilities collectively. 7 This took the form of
mutuality and gave rise to the custom of losses being share by the group as a whole.
Furthermore, Islamic societies have always collectively assisted their members, both
in cash and kind, when they have been required to incur some unusual or additional
expenditure on deaths, births, marriages, etc. All the above practices mutual
assistance can be considered as origin forms of insurance.

1.1.1 DEFINITION

Takaful is derived from the Arabic root-word “ kafala “, a verb, which means
guarantee , bail , warrant or an act of securing one’s need. 8 Therefore, takaful (in its
give and take form) means joint guarantee, whereby a group of participants agree to
mutually guarantee each other against a defined loss. In the context of Islamic
insurance, takaful refers to an arrangement for mutual indemnity in providing
protection and compensation to the participants who suffered from perils or hazards.9

6
Note of Takaful From Ustaz Ali Jinnah
7
Ibid
8
9
Ibid
5

According to Section 2 of the Malaysian Takaful Act 1984:
“ Takaful is a scheme based on brotherhood , solidarity and mutual
assistance which provides for mutual financial aid and assistance to the participants ,
in case of need whereby , the participants mutually agree to contribute for that
purpose “ .10

1.1.2 PRINCIPLES OF TAKAFUL

The principles of Takaful are as follows:

• Policyholders cooperate among themselves for their common good.

• Every policyholder pays his subscription to help those that need assistance.

• Losses are divided and liabilities spread according to the community pooling
system.

• Uncertainty is eliminated in respect of subscription and compensation.

• It does not derive advantage at the cost of others.

1.2 TREND IN TAKAFUL INDUSTRY

1.2.1 KEY TRENDS IN THE TAKAFUL LANDSCAPE

Takaful as a Key Institutional Investor:11 Islamic funds have found their appeal with
retail and HNW individuals, but institutional investors (including Islamic pension
plans) are bound to grow in importance. This implies more sophisticated
requirements: greater diversification, longer track records and heavier scrutiny of
risk-adjusted returns. The arrival of takaful assets foretells a second wave of growth
for Islamic funds, with a greater focus on Shari’ah-compliant products than the
current driver of GCC liquidity (which doesn’t necessarily seek Islamic products
exclusively).

Takaful as a Driver of Discretionary Portfolios: 12 While demand for pooled vehicles
will remain strong, more operators would seek to customize their portfolios via
segregated accounts, a common trend in the SRI industry. In fact most SRI assets
are placed not in mutual funds but rather in discretionary portfolios (92% in the US
and 79% in Europe). Furthermore, the size of takaful operators would not always

10
Malaysian Takaful Act 1984
11
Comparative Study of Insurance and Takaful (Islamic Insurance), Muhammad Anwar, 17 March 2006
12
Ibid
6

justify an in-house asset management team, prompting outsourcing of several
components to specialized firms (i.e. for allocations into real estate, alternatives, etc).
This could also widen the demand for fund of funds programmers as a more
standardized alternative.

Takaful as a Fully-Compliant Investor:13 Despite the above comparison to SRI (global
assets at approximately USD2.3 trillion), takaful operators will fully allocate into
Shari’ah-compliant instruments, making their impact far more prominent.
Conventional insurance/pensions are not required to fully invest in SRI, and in some
cases these are marginal allocations. Takaful, on the other hand, also has much
more elaborate requirements (Shari’ah screening and compliance), whereas 80% of
SRI screening is focused purely on tobacco and alcohol exclusion. In this sense
takaful must not only seek a few compliant products but take a portfolio-wide
approach that tackles all asset classes.

Takaful as a Source of Product Demand: 14 While the growth and issuance of sukuk
seems to grab more headlines than takaful, the two go hand in hand. In fact, sukuk
can be regarded as being driven by product supply (especially from government and
government-linked issuers), whereas takaful exemplifies product demand (and fixed
income being the most prominent product gap). What remains to be seen is whether
the appetite of takaful is strong enough for it to allocate into products with shorter
track records (such as emerging markets and alternative products). Furthermore,
conventional insurance allocates extensively to balanced funds, and the demand for
these mixed-asset funds should also be expected from takaful investors.

1.2.2 SIGNIFICANT TREND IN TAKAFUL INDUSTRY

First
There has been a significant momentum in terms of growth and participation
of takaful players in the global market. With its rapid annual growth of between 15-
20%, the global takaful industry is one of the fastest growing components of the
insurance market.15 Based on the 2007 Oliver Wyman Report, the potential premium
for takaful worldwide, is at least USD20 billion annually, while the current figures for
premium is estimated at USD4 billion. The report also estimates that up to 20% of the

13
Ibid
14
Ibid
15
Article about Takaful (Bank Negara Malaysia) Assistant Governor's Keynote Address at the International
Takaful Summit - "Global Takaful Industry: Moving to the Next Level of Excellence"

7

takaful revenues originated from non-Muslim customers. The strong growth was also
attributed by the increasing number of companies offering takaful services across
jurisdictions. Currently, there are more than 250 takaful operators worldwide. There is
also a growing participation of established conventional players in the takaful and
retakaful industry. There are large conventional players from the UK, US and
Germany that have set-up takaful or Retakaful companies within their groups. This is
an important development. A strong and credible retakaful industry is a crucial
contributor to promote the expansion of the takaful industry worldwide.16

Second
There is a growing global demand for takaful products following the
phenomenal growth of various components in the Islamic financial system particularly
the Islamic banking sector and the Islamic capital market. The advancement by both
sectors contributed towards the strong growth of takaful and retakaful industry.17 For
instance, the tremendous growth of Islamic financing and mortgages provide natural
demand for mortgage protection takaful covers as part of the package to complement
Islamic financing products. The increasing popularity of sukuk issuance also provides
great support to the growth of the takaful industry. The issuance of more sukuk with
longer tenure to match investment and risk management of longer-term liability would
spur the growth of the investment-linked takaful products. The upside on this is
takaful has a ‘natural constituent' for it to grow further in the future.

Third
Much progress has also been achieved in the regulatory sphere in the last
two years. The Islamic Financial Services Board (IFSB) has established a joint
working group with the International Association of Insurance Supervisors to develop
standards applicable to takaful operators.18 IFSB have made significant progress in
this initiative, including issuance of concept paper on the regulation and supervision
of takaful entities. Further, the IFSB working group is in the midst of finalizing an
exposure draft on corporate governance standards for the takaful industry. The
corporate governance standard will cover key issues in the takaful business including
rights and obligations of stakeholders in takaful operations and risks ownership.19
IFSB has also set up a working group on solvency in takaful business. This will
further improve comparability between takaful companies, promote harmonization of

16
Ibid
17
Ibid
18
Ibid
19
Ibid
8

practices and give more confidence to the industry as a whole. These are certainly
positive developments for takaful industry, to be recognized as an emerging
component in the mainstream global financial system.

1.3 MODEL OF TAKAFUL

1.3.1 GENERAL TAKAFUL MODELS

A general takaful business can use any of the operational models as example
mudarabah, wakalah , or waqf models . The most popular models for general takaful
in Malaysia are perhaps the modified mudarabah and modified wakalah models. The
reason being, general takaful operation is normally a short-term arrangement and the
risks under coverage are generally inherent.20

1. General Takaful Operation – Mudarabah Model

Under the pure mudarabah model, there will not be any sharing of the net
underwriting surplus. In this model , the sole source of income to the takaful operator
will be the mudarabah investment profits as inadequate and do not commensurate
with their efforts in managing the takaful operation .21 This may deter the takaful
operator from opting for the pure mudarabah model and go for the modified
mudarabah.

Under the modified mudarabah model, the participants contribute to the
general takaful fund by way of donation or tabarru’.22 The participants then appoint
the takaful operator to be their manager to invest the fund by way of a mudarabah
contract. All the investment profits are channeled back into the takaful fund. At the
same time, the takaful fund is used to pay claims and other expenses, such as, re-
takaful and reserves. The net surplus (inclusive of the mudarabah investment profits)
is treated as “mudarabah profits“, which are to be shared between the takaful
operator and the takaful participants at the agreed profit sharing ratio.

2. General Takaful Operation – Wakalah Model

20
21
Ibid
22
Ibid
9

Under the wakalah model for general products, the participants as a group
appoint and authorize the takaful operator to be their agent (wakil) to manage the
general takaful fund.23 The takaful operator will be the participants’ agent (wakil) for
both the “insurance” as well as investment activities. A wakalah fee is charged for the
takaful operator’s efforts. If the takaful operator is not charging anything else over
and above the original wakalah fee, this is considered as a “pure wakalah model “.
However, if the takaful operator is charging an additional “performance fee” as a
percentage of the net underwriting surplus, this is considered by some to be a
“modified wakalah model“.

Under the modified wakalah model, the participants contribute to the general
takaful fund by way of donation or tabarru’.24 The participants then appoint the takaful
operator to be their agent (wakil) to manage their insurance and investment activities
of the takaful fund. The operator is remunerated with an up-front wakalah fee. All the
investment profits are channeled back into the takaful fund. At the same time, the
takaful fund is used to pay claims and other expenses, such as, re-takaful and
reserves. The net surplus is to be returned to the participants after deducting an
agreed percentage as “performance fee” for the takaful operator.

1.3.2 FAMILY TAKAFUL MODELS

Similar with general takaful, family takaful also has a variety of operational
models. Some takaful operators use mudarabah model, while others use wakalah
model, or waqf model.25 In addition to the basic model, some family takaful models
also have additional features to better serve the various specific needs of participants
and make the products more competitive or efficient. For, example, the inclusion of
some “riders“, the “drip” features, “takaful-link” or unit-linked.

1. Family Takaful Operation – Mudarabah Model

The earliest model for family takaful in Malaysia is the mudarabah model.26 In
practice, takaful schemes in Malaysia normally use pure mudarabah or wakalah
model for the PA, while the modified mudarabah or modified wakalah / ji’alah is used
for the PSA.

23
Ibid
24
Ibid
25
Ibid
26
Ibid
10

Under the pure mudarabah model, the participants contribute to the Family
Takaful Fund for two main purposes: saving / investment; and donation. 27 The saving
and investment will be credited into the PSA. The PA belongs to the participants. The
PSA belongs to the family takaful risk fund. Both PA and PSA will be invested in
Shari’ah compliant investments by the takaful operator. Any investment profits will be
shared between the participants and the takaful operator according to pre-agreed
profit-sharing ratio. The PSA will also be used to pay claims, reserve and others. Any
net underwriting surplus will be returned to the participants. The PA will be
accumulated and then paid together with the coverage amount from the PSA to the
participants or rightful recipients upon maturity or claim.

2. Family Takaful Operation – Wakalah Model

In a family takaful operation that uses the wakalah model, the participants still
contribute to the Family Takaful for the two main purposes of saving / investment and
donation.28 Similar with the mudarabah model, the saving/ investment portion will be
credited into the PA, and the donation portion will be credited into the PSA. However,
when the takaful operator manages the Family Takaful fund, it is done on the basis of
wakalah (agency contract) for which, a fee is charged by the takaful operator.

Here, all underwriting surplus and investment profit belong to the participants/
policyholders, with charges inclusive of investment management fee being taken as
income to the operator. These charges can take many forms, and could include
incentive compensation. It is the structure of these charges that can greatly change
the risk profile of the operator.

1.3.3 THE CONCEPT AND WORKING SYSTEM OF TAKAFUL

As a concept, insurance actually does not contradict the practices and
requirements of the Shari’ah. In essence, insurance is comparable to the system of
mutual help in relation to the tradition of blood money under the Arab tribal customs.
It is the pooling of common resources to help the needy , a scheme which is very
much in line with the principle of compensation and shared responsibility among the
community , as practiced between the Muhajirin of Mecca and the Ansar of Medina ,

27
Ibid
28
Ibid
11

following the Hijra of the Prophet (PBUH) over 1400 years ago . 29 In fact, Muslim
jurists acknowledge that this practice laid the foundation of mutual insurance.

However, Muslim jurists have generally accepted that the practice and
operation of conventional insurance, in its present form, do not conform to the rules
and requirements of the Shari’ah. In June 1972, The National Fatwa Committee of
the Malaysian Islamic Affairs Council resolved that the present-day life insurance
business provided by the conventional insurance companies was not in line with the
principles of Shari’ah. Similarly, in a comprehensive deliberation, The Fiqh Academy
of the Organization of Islamic Conference (OIC), at its meeting in December 1985,
resolved that no forms of insurance ( life or general ) conformed to Islamic
principles .30

According to the jurists, insurance business is based on a buy-and-sell
contract which does not fulfill the characteristics of a buy-and-sell contract according
to Islam, because of the presence of the following elements in the insurance contract.

1.4 GROWTH IN TAKAFUL INSUSTRY

The growth in Takaful business in Malaysia has been impressive. Starting
from a low base in 1994, the annualized average growth used to be in the order of
92% in Family Takaful and 34% in General. Since 1998, the growth rate has slowed
down to around 30% in Family Takaful and 17% in General.31 In Family Takaful the
products sold were individual and group term and savings products, mortgage
policies and pension plans. In General takaful all classes of business were sold.

29
Directory of Islamic Insurance (Takaful) 2000, Institute of Islamic Banking & Insurance
30
Ibid
31
Position of The Takaful Industry in Malaysia, Takaful expected to constitute 20 percent of total
insurance market by 2010. – Islamic finance news

12

TABLE 1: Growth of Takaful in Malaysia

US$m Family % General % Total %
Takaful Increase Takaful Increase Takaful Increase
1998 55.0 36.6 91.6
1999 70.0 27 % 42.7 17 % 112.7 23 %
2000 93.2 33 % 49.8 17 % 143.0 27 %

Exchange rate RM2.43 to $ (1997 prices)

A greater awareness of Takaful system is achieved

• More Takaful companies are set up and run professionally
• More global coverage is secured through international companies' network
and the use of modern IT technology
• Sale through banks
• Companies are well capitalized and demonstrate secure haven for the funds
• Retakaful capacity with triple A rating is available

Other factors were also taken into account such as literacy levels in each country and
the take up rates for takaful products as opposed to conventional products.

GRAPH 1

13

Twenty-seven countries were selected where most of the demographic and
insurance statistics was available. It was estimated that the global takaful premium
could be in the region of US$7.4 billion in 15 years' time, growing at nearly 20% per
annum.32 This is not an unachievable task when we have Malaysian takaful business
growing at 60% pa and the Middle East at 10%. With concerted effort on part of the
Takaful operators worldwide, a growth of 20% pa should be very much possible. 33

1.4.1 TAKAFUL INDUSTRY GROWTH

The Takaful industry has grown significantly as the Islamic alternative to
conventional insurance and has evolved from being a regional business to a global
one. The renaissance in Socially Responsible Investing (SRI) and customer demand
for Shariah compliant solutions has enhanced the community banking appeal of
Takaful-related products.34 Major markets currently include Malaysia, Iran, Pakistan,
Saudi Arabia and other GCC countries. Annual average individual market growth
rates range between 15% and 30%. The Takaful product family spans across
general, life, health and pensions business lines.

The two main business models used in the Takaful industry are the
Mudharabah and the Wakalah models. The Mudharabah model is commonly used in
Malaysia and involves the Takaful operator managing the operation in return for a
share of the surplus on underwriting and a share of profit from investments. 35 The
Wakalah model is more prevalent in the Middle East region. In this model, the
Takaful operator acts as an agent (Wakeel) for the participants, and manages the
Takaful/re-Takaful fund in return for a defined fee.36

The global Takaful industry is relatively small in comparison to its
conventional insurance counterpart and the current Takaful market size is estimated
between US$2.5 billion (RM9.18 billion) to US$3.5 billion (RM12.85 billion) of annual
premium. It needs to gain critical mass, build worldwide brand recognition and
exceed performance standards set by the conventional insurance industry. There are
only a few international Takaful suppliers. The major challenges faced by the national
and cross-border Takaful suppliers include raising customer awareness and
education; expanding product innovation, creative product design and marketing;

32
Ibid
33
Ibid
34
Malaysian Islamic Finance Issuers and Investors Forum 2006, Sohail Jaffer
35
Ibid
36
Ibid
14

gaining brand recognition; offering attractive investment choices for customers in
family Takaful linked investment plans; intelligently deploying technology to enhance
customer experience and overall consumer satisfaction levels; finding an AAA-rated
international reinsurance company willing to accept a re-Takaful solution, offer
individual risk-bearing capacity; and widening penetration of bank and alternative
distribution channels.

The Takaful industry has been successful in distributing products through its
agency sales force, direct channel, e-commerce and, to a limited extent, via certain
retail banks.37 Product customization for the different bank channels (retail, mass
affluent, private banking), customer referrals and gaining brand loyalty are important
critical success factors. Product packaging, customer convenience, customer care
and transparency of product terms, conditions and pricing are also important
catalysts to increase the share of the Takaful business across multiple distribution
channels. For family Takaful linked investment plans, an open investment
architecture platform is important for the retail banking channel. Clearly the ability to
tailor suitably diversified risk reward investment portfolios, select top quartile
performing funds from major international brands and control defined portfolio risk
levels are powerful drivers for the retail value proposition. Furthermore, the product
certification by an independent Shariah board of experts and ongoing compliance
monitoring with high ethical standards has favorably impacted transparency,
disclosure of different terms and conditions, charges and frequency of reporting.

Several enterprising banks have included banc assurance in their product
offerings, and some of the new Takaful operators are offering certain general Takaful
products online. The distribution of Takaful life and savings products through bank
channels is relatively new, but the sales process through the branch banking network
has been facilitated by the advent of web-based point of sale and online
administration systems.38 In addition to the benefits of customer convenience, the
“white label” advantage of using own brand equity, transparency of product terms
and conditions, open investment architecture and efficient online processing has all
proved attractive to major bank distribution partners.

37
Ibid
38
Ibid
15

1.4.2 CURRENT STATUS OF TAKAFUL INDUSTRY

The current size of the takaful market based on 2005 figures is US$4.3 billion
of premium contributions from about 107 companies if windows are strictly excluded.
The industry is characterized by:

• Lack of statistics & information;

• Takaful operators are mostly new companies, local and small-sized players;

• Lack of market research and R&D;

• Lack of expertise & standardization;

• Limited investment opportunities;

• Heavy reliance on conventional reinsurance.

1.5 COMPARISON BETWEEN TAKAFUL AND INSURANCE

Conventional
Particulars Mutual insurance Takaful
insurance

Responsibility
Risk is transferred
for Mutual risk sharing Mutual risk sharing amongst
from the insured to
providing amongst members participants
the insurer
protection

Secular law and Secular law and Secular law and regulation and
Governing law
regulation regulation Shari’ah law

Shareholders of
Ownership Members Participants
insurance company

Wakala (agency) / mudarabah
(trust financing) agreement and
Bilateral insurance Bilateral insurance
Contract forms unilateral contracts based on
policy policy
principles of Tabarru’
(donation)

Investment No restrictions on No restrictions on All investments to be in
equity/debt equity/debt accordance with Shari’ah
investments investments principles – excludes all debt
16

and some equity investments

The members of the
The participants are collectively
The insurance mutual are
responsible for the payment of
company (and collectively
claims and may be asked to
Liability of the ultimately its responsible for the
contribute in the event of
operator shareholders) are payment of claims
shortfall if the Takaful operator
responsible for any and may be asked to
does not provide Qard Hasan
claims payments contribute in the
(interest free loan)
event of shortfall

Surplus in
Ultimately for account For account of
operational For account of participants
of shareholders members
income

2.0 THE CONCEPT OF HIBAH

2.1 HIBAH IN DEFINITION

Hibah is a gift. This is a token given voluntarily by a debtor to a creditor in
return for a loan. Hibah usually arises in practice when Islamic banks voluntarily pay
their customers a 'gift' on savings account balances, representing a portion of the
profit made by using those savings account balances in other activities. 39

It is important to note that while it appears similar to interest, and may, in
effect, have the same outcome, Hibah is a voluntary payment made (or not made) at
the bank's discretion, and cannot be 'guaranteed.'40 However, the opportunity of
receiving high Hibah will draw in customers' savings, providing the bank with capital
necessary to create its profits; if the ventures are profitable, then some of those
profits may be gifted back to its customers as Hibah. And Hibah also defined as the
transfer of existing properties made voluntarily and without any consideration by the
Donor to the Donee and accepted by or on behalf of the Donor during their life time.41

“….and gives his wealth in spite of love for it, to the kinsfolk, to the orphan and to Al-
Masakin (the poor), and to the wayfarer and to those who ask...”

39
Undang-undang Harta dan Amanah, Akmal Hidayah Halim, IBFIM
40
Ibid
41
Ibid
17

(Verse 177, Surah al-Baqarah)

“What is wrong with men who give their sons gifts and then keep them and if the son
dies, they say, ‘My property is in my possession and I did not give it to anyone.’ But if
they themselves are dying, they say, ‘It belongs to my son, I gave it to him.’
Whosoever gives a gives, and does not hand it over to one to whom it was given, the
gifts is invalid, and if he dies it belongs to the heirs in general.”

(Narrated from Abdullah Ibn Umar; Abdullah Ibn Abbas)

“The Prophet (Pbuh) said: It is not lawful for a man to make a donation or give a gift
and then take it back, except a father regarding what he gives his child. One who
gives a gives and then takes it back is like a dog which eats and vomits when it is
full, then returns to its vomit...”

Thus it is necessary to emphasize at the outset that the takaful business as
practiced in Malaysia is of the kind of cooperative takaful (al-takaful al-taawuni)
participated by a group of members of the public for their own cause within the
domain of the private sector.42

2.2 ADVANTAGES OF HIBAH

The hibah property will not be part of the original owner because the contract
concluded that the transfer of the property to the beneficiaries is legal. The person
who gives his property as hibah will be protected against any legal action from
creditors on the particular wealth.43

In Malaysia, there are few corporate and professional bodies that provide the
consultation on how to manage our financial planning, one of them is Darul Hibah
Consultant Sdn. Bhd.44 The person who dealing with hibah will not facing with any
difficulties in completing hibah transaction. It won’t take long time compared to
documentation completing faraid matters.

42
Nomination and Hibah Issues in the Takaful Industry, Azman Bin Ismail, ISRA Shari’ah Conference
on Takaful 2009
43
Ibid
44
Panduan Wakaf, Hibah dan Wasiat Menurut Al-Quran dan Sunnah, Sheikh Muhammad Bin Shalih Al-
Utsaimin, 2008
18

Hibah can eliminate the problem of quarreling among he beneficiaries in
claiming the ownership of the property.45 The owner of property has full rights to
transfer any amount of his wealth to anybody; his legal heirs or not. Hibah has no
limitation as Faraid and wasiyah. Faraid is strictly distributed to legal heirs only and
wasiyah cannot be distributed to any family member in legal heirs, and at maximum
of 1/3 only.

3.0 HIBAH IN THE TAKAFUL INDUSTRY

In takaful industry, hibah concept is used in several family takaful products in
which participants could give hibah in the form of assigning the takaful benefit to the
nominee or hibah recipient. In order to eliminate the element of uncertainty in the
takaful contract, the concept of ‘tabarru’ (to donate, to contribute, to give away) is
incorporate in it.46 In relation to this a participant shall agree to relinquish as tabarru’ ,
certain proportion of his takaful installments or takaful contributions that he agrees or
undertakes to pay thus enabling him to fulfill his obligation of mutual help and joint
guarantee should any of his fellow participants suffer a defined loss.47

In essence, tabarru’ would enable the participant essence, tabarru’ would
enable the participant who might suffer a loss or damage due to a catastrophe or
disaster. The sharing of profit or surplus that may emerge from the operations of the
takaful, is made only after the obligation of assisting the fellow participants has been
fulfilled.48 It is imperative, therefore, for a takaful operator to maintain adequate
assets of the defined funds under its care whilst simultaneously striving prudently to
ensure the funds are sufficiently protected against undue over-exposure.

3.1 HIBAH IN TAKAFUL

There are several products that adopt the concept of takaful hibah. Hibah
implemented the takaful is in two forms:

A. Hibah an Existing49
Hibah something that is either in the form:
45
Ibid
46
TAKAFUL (Islamic Insurance), Concept and Operation System, From The Practitioner’s Perspective,
1996 BIRT
47
Ibid
48
Ibid
19

(a) Hibah through Takaful Products
Hibah is done by the takaful participants who are required to nominate
hibah recipients as participants and takaful provider hibah takaful contributions as
taxpayers. There are several facilities that offer takaful products such as Iqra’ by
Takaful Nasional Sdn. Ltd, Students and Education by Syarikat Takaful Malaysia
Berhad and Youth Plan by Takaful Ikhlas Sdn Bhd. This product is only offered to
parents who a son. (Student Brochure Takaful, Education and Iqra'). The total
amount outstanding in the accounts of participants will be subject possessions syara’
to the laws that have been discussed previously. That will benefit all results obtained
from the participant's participation as one of the takaful participants will is he owned.
Hibah in this type must not conflict with any rule of law because syara’ and conditions
can be implemented.

(b) To Hibah Participants Takaful.
Takaful Fund management through Tabarru’ wills hibah something to
participants as a reward above a certain success achieved by the participants.
Hibah in this type is clear and not in conflict with the principles of syara’ because all
the harmonious and conditions can be met.

B. Hibah will find something and Effective Death After participants.50
Hibah was meant here is benefit takaful nominee to the specified by the
takaful participants through beneficiary form. This type of Hibah has long debated by
local contemporary scholars widely. Cause of disagreement between them is
because of the following:

(a) Hibah something that did not even exist.
(b) al-Qabd Troubleshooting
(c) Status of takaful benefit.
(d) Who's Right takaful benefit.
(e) Law-related to Testament and Faraidh.

3.2 TAKAFUL IKHLAS SDN BHD

49
Article: Implementation Of Business In Industry Takaful: Kind And Command , Abdul Razak Bin Mohd
Zamerey (Takaful Ikhlas Sdn. Ltd.) & Shofian Ahmad Department of Shariah, UKM
50
Ibid
20

3.2.1 MODEL OF TAKAFUL IKHLAS

In line with international and local developments in the practice of Islamic financial
protection services, Takaful IKHLAS has adopted the Wakalah contract as our
system and have modelled our operations accordingly. Wakalah is a form of
representative relationship between Takaful IKHLAS and a participant
(Principal/Customer).

Takaful IKHLAS employs the following contracts to govern our business:

 Tabarru’ is a contract where the participant agrees to donate a pre-
determined percentage of contribution to the Risk Fund to provide assistance
to fellow participants.
 Wakalah is a contract where the participant authorises Takaful IKHLAS to
conduct the affairs of Takaful business i.e providing protection, investment
etc. on his/her behalf.
 Takaful IKHLAS Model allows the use of intermediaries as a medium to better
serve the customers’ needs, payment of surpluses and profits, where
applicable to participants and calculation of shared benefits on a monthly
basis.

21

Note:
For GRIA, a portion of the contribution in the investment account is set aside for
Tabarru’ at the onset which will be dripped to the Risk Fund (RF). Any investment
income derived from this amount in the investment account shall be allocated to the
Risk Fund (RF). In this instance, IKHLAS will not charge a fund management fee (%).
Net surplus distribution will be allocated and administered on an annual basis. The
way that they selected which one to be invested into fund with see in which one gain
high return and it will also have the high risk of that fund.

Contract in Islamic divide into four categorize:-
1) Grant of ownership
Grant of ownership is divided into two namely:
a. Muawadhah means exchange contract
b. Tabarru' means thing given without any exchange
Under the part of tabarru', there are 4 main concept which is ,
a) Gift (hibah)
b) Infaq
c) Alms (sadaqah)
d) Donation

22

2) Partnership
3) Reserve and care (Wadiah)
4) Representation (Wakalah)

There are two types of Hibah that applied in Takaful Ikhlas Sdn Bhd which is;
i. for its takaful benefit ( surplus )
Hibah in tabarru' is use when there is Surplus Administration Charge (SAC).
When it is come to surplus, takaful will put a charge on it. If takaful did not put
a charge on it, it will go to the participant account back through hibah to the
account ta’awuni.

ii. for when there is death
The second point of hibah in takaful industry happen is when death occurred.
The participants have to fill 2 forms namely;
a) Required Takaful Act Form (Borang Wajib Akta Takaful)
b) Nominee Form (Borang Penama)
Under the nominee form, those persons were already named, the property
would not be awarded to his/her but they are just appointed to manage the
property for the dead people. Furthermore, the property will be distributed
according to 'faraid'.

The 2 types of form above are compulsory to fill up but there is another form
that issued by Takaful Ikhlas itself called Hibah Suggestion Form (BORANG
CADANGAN HIBAH). This form is issued to the participant to propose name/s for
recipient of hibah. The recipient of hibah is among parents, legal couple (husband
and wife), biological child and sibling only. This form is not compulsory to fill up by
the participants.

23

3.3 THE ISSUES OF HIBAH IN TAKAFUL INDUSTRY

Generally, any asset in its tangible form or in the form of its benefit (usufruct)
can be given as hibah to another party. The issues that arise are:

1. Whether takaful benefits qualify as an asset for hibah?
2. Whether the status of hibah changes to will (wasiah), if the participant dies,
since the transfer of the assets ownership would take place after the death of
the donor?
3. Whether a participant can revoke the hibah, before the maturity of the takaful
certificate?
4. What is the implication, should the recipient of the hibah die before the
maturity of the takaful certificate?

The Council, in its 34th meeting, held on 21st April 2003 / 19 Safar 1424, resolved
that
1. Takaful benefits can be used for hibah, since it is the right of the participants.
Therefore, the participants should be allowed to exercise their rights,
according to their choice. as long as it does not contradict the Shari’ah
2. The status of hibah in takaful plan does not change into a will (wasiah), since
this type of hibah is a conditional hibah, in which the hibah is an offer to the
recipient of hibah for only a specified period. In the context of takaful, the
takaful benefits are both associated with the death of the participant, as well
as maturity of the certificate. If the participant remains alive on maturity, the
takaful benefits are owned by the participant, but if he dies within such period,
then the hibah shall be executed
3. A participant has the right to revoke the hibah before the maturity date,
because conditional hibah is only deemed to be completed after delivery is
made (qabdh)
4. A participant has the right to revoke the hibah to one party and transfer it to
other parties or terminate the takaful participation, if the recipient of the hibah
dies before maturity
5. The takaful nomination form has to be standardized and must stipulate clearly
the status of the nominee, either as a beneficiary or an executor (wasi) or a
trustee. Any matter concerning distribution of takaful benefits must be based
on the contract. Participants should be clearly explained on the implication of
every contract being executed.

24

The next issue is whether participants can give away the takaful proceeds as
hibah. The takaful proceeds are made up of either the participant’s contribution in
his/her investment account or the risk account pooled from participants’ tabarru’
portion. Under the shariah, the takaful proceeds from the investment account may be
given away as hibah as it is the property of the participant, but what is the status of
the tabarruc portion? It seems that there are differing opinions on this. Some takaful
operators do not allow takaful proceeds in general to be given as hibah and
participants do not have this option. Presumably their shariah committees have not
approved that the proceeds be given away as hibah. One possible argument for this
is that the takaful proceeds are non-existent at the time when the hibah is executed.
According to jurists, when the object of gift is non-existent at the time the hibah is
executed, the contract is void.

On the other hand, giving away takaful proceeds as gifts will definitely brings
greater benefit as the participant need not pay for a higher contribution and the
possibility of it leading to dispute, hatred, and devouring others’ wealth wrongfully is
very small. Indeed the Shariah Advisory Council of Bank Negara Malaysia has rightly
resolved that, “Takaful benefit can be used for hibah since it is the right of the
participants. Therefore, the participants should be allowed to exercise their rights
according to their choice as long as it does not contradict with shariah.” Dallah Al
Barakah has also come to the same conclusion although the rationale was different.
It states, “It is permissible to distribute the (takaful) death benefit according to the law
of mirath (Islamic law of succession), as it is also permissible to distribute the
payment to a particular individuals or parties as specified by the participant on the
basis that the benefit is the contribution of other participants to the beneficiary as
specified by the participant and not his estate.” In financial planning, estate planning
plays an important role and hibah is a very simple yet powerful that can be used.

A consequential issue to the hibah concern is whether the hibah of the takaful
proceeds can be revoked. In this respect, we need to consider the legal framework of
the particular country in which takaful operates as it will affect the legality of the
hibah and any jurisprudential opinion must give due consideration to it. This
philosophy is aptly captured by Imam Ibn Qayyim al-Jawzi when he said, “Changes
in fatwa are evaluated by changes in time, places, conditions and customs.” In many
countries, legislation provides protection for spouses and children and in naming
them; a statutory trust in favor of the nominee of the policy moneys payable is
created. Having said that, life insurance is important especially in some jurisdictions

25

as an additional means of providing liquid assets to the estate and surviving spouse.
It is usually received by the beneficiary free of income tax and the proceeds can be
used for the payment of estate debts and expenses and for support. The issue of
whether a gift can be revoked has not only attracted the attention of Muslim jurists; in
English law the issue has been the subject of various legal principles, precedents
and legislation. Prior to the Policies of Assurances Act 1867, a life policy was not
assignable in law and although equity always permitted such assignments, the
assignee could only sue to enforce the policy if he joined the assignor in the action
and an insurer cannot obtain a good discharge against payment from assignees
alone. The Act protects legal assignment and the assignee can enforce it in his
name. It can also be assigned under Section 136 of the Law of Property Act 1925 but
a court found that this is not strong enough.

26

4.0 CONCLUSION

After going through the models and products currently offered in the market,
we can see that the products offered by the takaful operators are quite similar to that
of conventional insurance, at least in terms of the protection accorded and the rates /
pricing.

The main element that actually differentiates takaful from conventional
commercial insurance is the tabarru’ feature which has been explained earlier.
Following that, the relationship between the participants and the takaful operator has
also changed. The takaful operator is not the insurer anymore. The takaful operator
is just the manager and operator of the takaful scheme.

Nonetheless, confusions and differences of opinion regarding the real
underlying contracts in the various takaful operational models remain. For example,
on the donation side: if it arrangement really tabarru’, then can the proceeds or
money be given back to the donor as tabarru’ is like hibah (gift) or sadaqah (charity) .
Perhaps, the usage of tabarru’ itself should be clearly explained to avoid confusion
as it carries certain connotations. In a conclusion, the underlying concept of tabarru’
in takaful model is different from literal understanding of hibah or sadaqah . It is
actually a commitment to donate with a condition of compensation. All in all, the
takaful industry is still very much in the development stage, with new model
variations emerging regularly.

27

5.0 RECOMMENDATION

What has been attained so far is comparatively small, but as shown from the
performance of takaful operators generally, is growing rapidly. Considering only a tiny
percentage of the ummah have some form of life insurance cover, the potential for
takaful to penetrate deeper into the market is tremendous. In this context family
takaful products would have a strong chance to grow and expand. Therefore takaful
is here to stay.

However, the future of takaful would depend on the ummah. Whether takaful
would develop into an industry and eventually become the real insurance alternative
for the ummah would depend on the commitment and political willingness of the
Muslims at the individual, community, national and international levels. What is
urgently needed is the practical translation of these commitment and political
willingness by all.

The time for polemic is past; it if no more discoursing on the basic issue of
'halal' or 'haram'. The way forward is on improving, correcting and developing the
existing operational structure, which has been generally accepted to be essentially
based on either the principles of Al-Mudharabah or Al-Wakalah. It is clearly
demonstrated that in countries where there is commitment and strong political
willingness plus the application of modern management practices in its approach,
countries have seen their takaful operations grow into a viable and profitable
business venture.

28

BIBLIOGRAPHY
1) Article: Implementation Of Business In Industry Takaful: Kind And Command ,
Abdul Razak Bin Mohd Zamerey (Takaful Ikhlas Sdn. Ltd.) & Shofian Ahmad
Department of Shariah, UKM
2) TAKAFUL (Islamic Insurance), Concept and Operation System, From The
Practitioner’s Perspective, 1996 BIRT
3) Directory of Islamic Insurance (Takaful) 2000, Institute of Islamic Banking &
Insurance
4) http://www.mifc.com/publication/p.9.10.pdf
5) Mohd. Ma’sum Billah, Islamic and Modern Insurance Principles and Practices,
Ilmiah Publishers, 2003
6) Dr. Engku Rabiah Adawiyah Engku Ali, Essential Guide To Takaful (Islamic
Insurance), CERT, 2008
7) What’s Takaful: A Guide To Islamic Insurance, 2008
8) Note of Takaful From Ustaz Ali Jinnah
9) Malaysian Takaful Act 1984
10) Comparative Study of Insurance and Takaful (Islamic Insurance), Muhammad
Anwar, 17 March 2006
11) Nomination and Hibah Issues in the Takaful Industry, Azman Bin Ismail, ISRA
Shari’ah Conference on Takaful 2009
12) Panduan Wakaf, Hibah dan Wasiat Menurut Al-Quran dan Sunnah, Sheikh
Muhammad Bin Shalih Al-Utsaimin, 2008
13) TAKAFUL (Islamic Insurance), Concept and Operation System, From The
Practitioner’s Perspective, 1996 BIRT
14) Malaysian Islamic Finance Issuers and Investors Forum 2006, Sohail Jaffer
15) Article about Takaful (Bank Negara Malaysia) Assistant Governor's Keynote
Address at the International Takaful Summit - "Global Takaful Industry:
Moving to the Next Level of Excellence"
16) Position of The Takaful Industry in Malaysia, Takaful expected to constitute
20 percent of total insurance market by 2010. – Islamic finance news
17) Undang-undang Harta dan Amanah, Akmal Hidayah Halim, IBFIM

29

APPENDICES

TAKAFUL IKHLAS SDN BHD (593075U) Business
Operations,
4th Floor, Wisma KT, No 14, Jalan 19/1,
47300 Petaling Jaya, Selangor Darul Ehsan.
Tel : 03-7801 1288/1488 Fax : 03-7801 1388
Website: http://www.takaful-ikhlas.com.my
(A Subsidiary of MNRB Holdings Berhad)

BORANG CADANGAN HIBAH
Saya sebagai Pemilik Sijil bagi pelan takaful yang akan dikeluarkan oleh Takaful Ikhlas Sdn
Bhd (kemudian disebut Syarikat) dengan ini mencadangkan kepada Pengurusan Tabungan
Akaun Taawuni (TAP) supaya membayar manfaat kematian kepada penama-penama yang
disenaraikan dibawah apabila berlaku kematian sebelum sijil takaful ini matang dengan syarat
dan terma seperti yang dinyatakan dalam sijil.

A. KETERANGAN MENGENAI PEMILIK SIJIL

Nama Penuh : __________________________________________________________
(mengikut K/P)

No. K/P (baru) : ______________________________

B. KETERANGAN MENGENAI PENAMA
(Sila gunakan borang yang lain sekiranya penama adalah lebih daripada 5 orang)

No. Nama Penuh Peratusan Pertalian No. K/P (baru) Alamat
(mengikut K/P) dengan atau Sijil Lahir
Pemilik Sijil
1.

2.

3.

4.

5.

_________________________ ____________________
Tandatangan Pemilik Sijil Tarikh

Syarat Penerima Hibah: Pelaksanaan:
1. Ibubapa 1. Hibah ini hanya boleh diberikan kepada penerima di atas.
2. Pasangan yang Sah 2. Pemberi Hibah adalah pengurusan TAP.
3. Anak-anak 3. Pengurusan TAP akan membayar manfaat kepada penama
4. Adik beradik selepas kematian peserta.
4. Manfaat kematian sahaja.
5. Senarai cadangan penerima manfaat takaful boleh diubah/tukar
bila-bila masa oleh peserta.
6. Cadangan terbatal jika penerima yang dicadangkan meninggal
sebelum peserta

30

Operations,
Tel : 03-7801 1288/1488 Fax : 03-7801 1388
Website: http://www.takaful-ikhlas.com.my

Operations,
Tel : 03-7801 1288/1488 Fax : 03-7801 1388
Website: http://www.takaful-ikhlas.com.my No Permohonan/Sijil / Proposal/Certificates No.

BORANG PENAMA
NOMINEE FORM

Nama
Name

No KP Lama / Paspot No KP Baru
Old I/C / Passport No New I/C No - -

Saya sebagai Pemilik Sijil bagi pelan takaful yang akan dikeluarkan oleh Takaful Ikhlas Sdn Bhd (kemudian daripada ini disebut Syarikat) dengan ini mengarahkan pihak Syarikat supaya membayar
manfaat takaful dan baki Akaun Pelaburan Peribadi (PIA)/ Akaun Pelaburan Risiko Peribadi (PRIA) yang berhak diterima oleh penama-penama yang dinamakan di bawah apabila berlaku kematian
sebelum sijil takaful ini matang dengan syarat dan terma seperti yang dinyatakan dalam sijil.

I, as the Certificate Owner for this takaful plan to be issued by Takaful Ikhlas Sdn Bhd (hereinafter known as the Company) hereby instruct the Company to pay all the Takaful Benefit and Personal
Investment Account (PIA)/ Personal Risk Investment Account (PRIA) receivable to the nominees named below upon death before the maturity of this certificates with the terms and condition stated in
the certificates.

Bagi Peserta Kepada penama pertama yang diamanahkan dengan tanggungjawab untuk membahagikan manfaat tersebut kepada waris-waris saya yang berhak mengikut hokum
Islam Syarak (faraid) tertakluk kepada Seksyen 65, Akta Takaful 1984 dan mana-mana perintah mahkamah Syariah. Sekiranya penama pertama meninggal dunia terlebih
dahulu maka manfaat tersebut hendaklah diserahkan kepada penama yang kedua yang mempunyai tanggungjawab yang sama seperti penama pertama dan
seterusnya.

For Muslim To the 1st nominee which is entrusted with the responsibility to distribute the benefits to my beneficiary who is entitled in accordance with Syariah (Faraid Law) in
Participant accordance to Section 65, Takaful Act 1984 and any order from the Syariah. Should the first nominee predeceased me then the 2 nd nominee will be entrusted to carry
the same responsibility as the 1st and thereafter.

Bagi Peserta Kepada penama-penama yang dinamakan dibawah. Sekiranya mana-mana di antara mereka itu meninggal dunia terdahulu daripada saya maka bahagiannya
Bukan Islam hendaklah dibahagikan sama rata di antara mereka yang masih hidup menurut peratusan bahagian yang dinyatakan dibawah.

For Non-Muslim To the person named below. If any one of the named beneficiary predeceased me his/her share will be equally shared between the survivor(s) according to the share
Participant as stated below.

Selanjutnya saya juga bersetuju bahawa Syarikat adalah bebas daripada sebarang tanggungan atau tuntutan setelah manfaat takaful dibayar kepada penama atau waris atau sesiapa sahaja di
bawah sijil takaful tersebut.

It is further agreed that the Company shall be discharged from all liabilities once the claim benefits have been made payable to the nominee/beneficiary under the said takaful certificate.

Nama Penuh No KP Alamat Kediaman Pertalian *Peratusan
Full Name I/C No Residential Address Relationship *Percentages

*Bagi penama bukan Islam sahaja. Jika beliau bertindak sebagai Pentadbir, kotak peratusan tidak perlu diisi.
*For a Non-Muslim nominee only. If he/she acts as an Administrator, the percentage box should remain empty.

______________________________________________
Tandatangan Peserta/ Pemilik Sijil
Signature of Participant / Certificates Owner
Bertarikh
Dated _____________________________________

______________________________________________ ______________________________________________
Tandatangan Saksi 1 Tandatangan Saksi 2
Signature of Witness 1 Signature of Witness 2
Nama Nama
Name _____________________________________ Name _____________________________________
No KP No KP
I/C No _____________________________________ I/C No _____________________________________
Bertarikh Bertarikh
Dated _____________________________________ Dated _____________________________________

31

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