Group Credit Takaful

Manual and Product Information

1.

July 2006

PRODUCT INTRODUCTION
What is Group Credit Takaful Plan?
COMMERCE TAKAFUL BERHAD has specially designed and introduced a product called
GROUP CREDIT TAKAFUL PLAN for the Bank Customers. This product is tailored to provide
Takaful coverage for all Bank Customers who participates under Bank Personal Financing.

2.

OBJECTIVES OF GROUP CREDIT TAKAFUL PLAN

The main objective of this particular plan is to safeguard the Bank as the Master Contract
holder. The benefit will be repaid on the outstanding balance of the Personal Financing
amount to the Bank in the event of the Participants pre-mature death or permanent total
disablement occurring during the tenure of the financing
Other objectives that are of significance to the Bank : (i)

Recovery of financing, if any, on the pre-mature death or disability of the

Customer without having to resort to duress, thus reducing the risk of bad
debts.

( ii )

No risk of adverse publicity arising from attempts to recover debts from

dependants, during a period of family difficulties.

( iii )

Enhances the caring image for the Customers benefits by incorporating this
plan with Bank Personal Financing Scheme.

In addition, the Participant has the advantage of:-

3.

(i)

Peace of mind for dependant/s without risk of continuing indebtedness or

repossession after the Participants death or if he becomes permanently and
totally disabled.

( ii )

To instill the Takaful principles of cooperation, mutual help and shared

responsibility, should any misfortune happen between Participants in the
plan. Allah Almighty said, And cooperate for the good deeds and piety but
never cooperate for transgression and evil (Surah Al-Maidah : Verse 2 ).

( iii )

Under the Mudharabah, principles, there is a potential for additional

earnings through profit sharing, if any.

GENERAL FEATURES OF THE PLAN

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Group Credit Takaful

Manual and Product Information

4.

July 2006

(i)

Each Participant will pay the Takaful contribution in one lump sum on or before the
Takaful commencement date.

(ii)

Participating is either made compulsory or strongly encouraged to all eligible

Customer, whichever is applicable to the Bank.

(iii)

The commencement date of coverage for the participation will be effective upon
payment received and will be terminated on the expiry of the agreed Personal
Financing Term.

(v)

One (1) Master Contract will be issued for this plan. The Bank will be named as the
Master Contract holder.

(vi)

The Takaful coverage is worldwide and for 24 hours a day.

(vii)

In case of pre-mature death or permanent total disablement which happens before

the expiry of the period of Takaful, settlement of the outstanding balance will be
paid to the Bank on behalf of the deceased or disabled Participant.

ELIGIBILITY CONDITIONS
All successful Customers shall be eligible to participate under this plan subject to the
following conditions:-

5.

(i)

New or existing Banks customers who are entitled to participate under Bank
personal financing scheme.

(ii)

The participants cannot be a corporation or a partnership.

(iii)

Minimum Sum Covered is RM1,000 and the amount of the Takaful coverage per
Participant is equivalent to the Personal Financing amount approved and it reduces
according to the Reducing Sum Covered Table.

(iv)

The coverage for Financing less than RM50,000 will be automatically accepted
without underwriting requirement.

(v)

Sum covered more than RM50,000 require to fill-up health declaration form and,
the acceptance and the rate is subject to approval from our Underwriter.

(vi)

Minimum age at entry is 18 and maximum age is 55. Financing to be settled before
reaching age of 60.

(vii)

The period of Takaful shall range from a minimum of 3 years to a maximum term
not exceeding 10 years.

BENEFITS

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Group Credit Takaful

Manual and Product Information

July 2006

For the purpose of the reference, we are providing these benefits. Accordingly, the Takaful
contribution rates will be adjusted according to the benefits.
There are 4 benefits available, i.e. :
(i)

TAKAFUL BENEFIT
The level of Takaful benefit payable on death to any Participant during the period of
Takaful is based on the reducing Sum Covered Table. Cause of death shall be due to
either natural or accidental causes.

(ii)

PERMANENT TOTAL DISABLEMENT

Permanent and total disability (PTD) as used in this clause shall mean disability,
whether caused by accident or diseases or sicknesses, which wholly prevents the
participant from ever again to follow his own occupation or any other occupation for
which he is reasonably suited by training, education or experience, provided,
however, that to determine whether the total disability has become a permanent
one, it must continue uninterrupted for a period of at least six (6) months and
provided that the first day of disablement shall not originate prior to the inception
of the Master Contract.
The occurrence of any of the followings shall be considered as PTD:(a)

Loss of two (2) or more limbs.

(b)

Complete and permanent deafness of both ears, of traumatic

origin.

(c)

Total and irrecoverable loss of sight in both eyes.

(d)

Total paralysis.

(e)

Injuries or illnesses resulting with the Participant being

permanently bedridden.

(f)

Permanent loss of speech of traumatic origin.

Where the injury or sickness is not specified above, COMMERCE TAKAFUL BERHAD
after consulting its Medical Advisors will adopt a percentage of disablement which
in its opinion is not inconsistent with the provisions of the above scale without
taking into consideration the Participants occupation.
The aggregate of any one accident or sickness shall not exceed 100% of the Sum
Covered.
In the event of the permanent and total disability suffered by a participant, the
benefit payable shall be on a lump sum basic based on the outstanding amount as
per the Reducing Sum Covered Table.
(iii) CASH REFUND

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Group Credit Takaful

Manual and Product Information

July 2006

The Participant has the right to withdraw from the plan by a written notification to
COMMERCE TAKAFUL BERHAD. In the case of early settlement of the Personal
Financing, a certain percentage of the Takaful contribution known as Cash Refund,
shall be payable to the individual participant upon confirmation in writing by the
Bank as the Master Contract holder.
The amount of the Cash Refund payable shall depend upon the following: -

(iv)

(a)

The amount of the Takaful Contribution.

(b)

The Participants attained age at entry.

(c)

The outstanding financing amount at the time of settlement.

PAYMENT AT MATURITY
Upon the maturity of financing term, the Participant shall receive his share of the
Net Surplus as determined by COMMERCE TAKAFUL BERHAD s appointed actuary, if
any, arising from the Participants Special Account as shown in the last actuarial
valuation by COMMERCE TAKAFUL BERHAD.

6.

SUM COVERED
The Sum Covered at the commencement date of the plan shall be equivalent to the total
Personal Financing amount approved by the Bank.

7.

TAKAFUL CONTRIBUTION RATES

(i)

The Takaful contribution is paid in a lump sum on or before the commencement of

the period of Takaful as specified in the Group Credit Takaful Master Contract. The
Takaful contribution amount in respect of the individual Participant shall be
determined from the following factors: a)
b)
c)
d)

8.

Age nearest birthday

Financing term
Financing amount approved
Additional Takaful contribution
unsatisfactory health conditions.

may

be

required

in

the

event

of

BANK SERVICE FEE

In view of the service rendered by them, the Bank is allowed to charge a Bank Service Fee,
up to a maximum of 10% of the Net Single Takaful Contribution.

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Group Credit Takaful

Manual and Product Information

9.

July 2006

COMMENCEMENT DATE
(i)

(ii)

as the Master Contract holder: a)

Upon completion of the Appointment Letter by the Bank.

b)

At inception, COMMERCE TAKAFUL BERHAD shall issue a Group Master

Contract to the Bank, being the financier in respect to the Personal
Financing Scheme and will be the Master Contract holder.

Individual Participant: Commencement date on the individual customer shall be effective on the date of
financing disbursement made by the Bank.

10.

11.

EARLY TERMINATION
(i)

The Participant has the right to withdraw from the Group Credit Takaful Plan
operated by COMMEREC TAKAFUL BERHAD with a written notification to COMMERCE
TAKAFUL BERHAD through the Bank and subject to the bank written confirmation of
the early settlement.

(ii)

For early settlement of the Personal Financing amount, the Takaful coverage can be
terminated and a Surrender Benefit known as Cash Refund, shall be payable
directly to the Participant or through the Bank.

ADMINISTRATION
(i)

No submission of application form required by COMMERCE TAKAFUL BERHAD under

Group Credit Takaful Plan for customer who participates in Banks personal
financing.

(ii)

Submission of applications shall be in form list of details agreed by the Bank and
COMMERCE TAKAFUL BERHAD to be submitted together with the payment.

(iii)

In the event that the Bank fails to remit the Participants Takaful contributions to
COMMERCE TAKAFUL BERHAD following the approval of the Participants
application:
(a) COMMERCE TAKAFUL BERHAD shall be discharged and released from its
obligation to provide the Takaful coverage to those Participants.
(b) COMMERCE TAKAFUL BERHAD shall not be responsible for and will not be liable
to meet all claims arising from the pre-mature death or permanent total
disability of that Participant, if any.

12.

CLAIM PROCESSING

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Group Credit Takaful

Manual and Product Information

July 2006

(i)

The benefits payable on the death or disability of the Participant shall be based on
the total outstanding amount as per the Reducing Sum Covered Table.

(ii)

Payments of the Takaful benefits are subject to the following conditions :

(a) That the information and particulars, which the Participant declared are true
and correct. If, it is proven that it is incorrect or he/ she has hidden from
COMMERCE TAKAFUL BERHAD any necessary information at the time of
application, the Participant shall not be entitled for any Takaful benefits.
(b) Misstatement of Age:
COMMERCE TAKAFUL BERHAD shall not pay any Takaful benefit unless the
Participants age has been proved correct. If the age of the Participant has
been miss-stated, the amount of Takaful benefits will be adjusted according
to the correct age.
(c) That the Participant had paid the entire Takaful contribution amount
required according to the terms and conditions of the Group Credit Takaful
Master Contract.

13.

(iii)

If, the above conditions are fulfilled, the Master Contract will allow such parties
expressed in the contract to receive the outstanding balance in accordance with
the Reducing Sum Covered Table as contained in the Master Contract Schedule.

(iv)

COMMERCE TAKAFUL BERHAD will not be liable for the payment of any unpaid
installment, which became due for payment before the date of Participants
permanent total disablement or pre-mature death.

(v)

The Takaful benefit shall be paid only once in case of permanent total disability or
death, whichever occurs earlier, after which the Individual Contract shall become
terminated.

(vi)

Documents required for Death/Disability claim or Early Termination are :

DEATH CLAIMS
(a)
(b)
(c)
(d)
(e)
(f)

14.

Written notice to COMMERCE TAKAFUL BERHAD within 30 days of occurrence.

Completion of Death Claim Form.
Certified True Copy of Death Certificate.
Certified True Copy of deceaseds Identify Card.
Police report, if death is due to accident.
AND any other documents deemed necessary by COMMERCE TAKAFUL

DISABILITY CLAIMS
(a)
(b)
(c)
(d)
(e)

Written notice to COMMERCE TAKAFUL BERHAD within the period of 30 days from
the date of disability.
Completion of PTD Claims Form by the Bank, the Participant and his employer
within a period of 270 days from the date of disability.
Medical attendant(s) report with regard to the disability.
Copy of Participants Identity Card.
Original copy of the Participants Individual Takaful Certificate (if any).

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Group Credit Takaful

Manual and Product Information

(f)
(g)
15.

Letter of notification from the Bank confirming the full settlement of the Personal
Financing facility.

PAYMENT AT EXPIRY OF THE PERIOD OF TAKAFUL

(i)

17.

Police report if death is due to accident.

AND any other documents deemed necessary by COMMERCE TAKAFUL

EARLY TERMINATION
(a)

16.

July 2006

The Participant is entitled to his / her share of the Net Surplus, if any, arising from
the Takaful Fund as shown in COMMERCE TAKAFUL BERHAD Actuarial Valuation
immediately preceding the date of expiry of the Participants period of Takaful in
the Master Contract.

EXCLUSIONS
(i)

DEATH
The death benefit under this proposed plan shall not be payable if the Participant
becomes disabled directly or indirectly as a result of any of the following causes: (a) willful self injury, suicide or attempted suicide or insanity or abortion or any
complications or resulting there from; or
(b) indulgence in alcoholic drink, misuse of narcotics or drugs; or
(c) war, invasion, act of foreign enemies, hostilities or warlike operations (whether
war be declared or not), civil war, mutiny, civil commotions assuming the
proportions of or amounting to a popular rising, military rising, insurrection,
rebellion, military or usurped power or any person acting on behalf of or in
connection with any Government or to the influencing of it by terrorism or
violence; or
(d) infection from any Human Immunodeficiency Virus (HIV), Acquired
Immunodeficiency Syndrome (AIDS) or any AIDS related condition or Venereal
Disease; or
(e) Sustained whilst the Participant is engaged in activities in contravention of the
Civil or Syariah Law or any assault provoked by him.

(ii)

PERMANENT TOTAL DISABILITY

The permanent total disability benefits under this proposed plan shall not be
payable if the Participant becomes disabled directly or indirectly as a result of any
of the following cause: (a)

War, invasion, act of foreign enemies, hostilities or warlike operations

(whether war be declared or not), civil war, mutiny, civil commotions

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Group Credit Takaful

Manual and Product Information

July 2006

assuming the proportions of or amounting to a popular rising, military rising,

insurrection, rebellion, military or usurped power or any person acting on
behalf of or in connection actively directed towards the overthrow by force
of any Government or to the influencing of it by terrorism or violence; or
(b)

Intentional self- inflicted injury whether sane or insane at that time; or

(c)

Sustained whilst under the influence or misuse of alcohol or drugs other

than in accordance with the directions of a registered medical practitioner;
or

(d)

Aviation, gliding or any other form of flight other than as a fare paying
passenger of a recognized airline or charter service; or

(e)

Participating in or training for any hazardous sport or competition or riding

or driving in any form of race or competition; or

(f)

Involvement in any underwater activities necessitating the use of artificial

breathing apparatus; or

(g)

Injury cause by nuclear fission, nuclear fusion or radioactive contamination;

or

(h)

Pregnancy, childbirth or abortion or any complication arising there from; or

(i)

Any disease or medical impairment from which the Participant was suffering
or had a serious past history prior to commencement of the period of
Takaful; or

(j)

Infection
from
any
Human
Immunodeficiency
Virus,
Acquired
Immunodeficiency Syndrome (AIDS) or any AIDS related condition;

(k)

Sustained whilst the Participant is engaged in activities in contravention of

the civil or Syariah Law or any assault provoked by him

Commerce Takaful Berhad