TAKAFUL FUTURE SMART FAMILY TAKAFUL CERTIFICATE SIJIL TAKAFUL KELUARGA. Certificate Serial No. / No. Siri Sijil: FLAH016

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1 HSBC Amanah Takaful (Malaysia) Berhad (Company No M) TAKAFUL FUTURE SMART FAMILY TAKAFUL CERTIFICATE SIJIL TAKAFUL KELUARGA Certificate Serial No. / No. Siri Sijil: FLAH016 Please read this Certificate carefully. Sila baca Sijil ini dengan teliti. PUBLIC DISCLAIMER: This Takaful Certificate is for general information only and is not binding. Please read the Product Disclosure Sheet, Product Illustration and the complete Takaful Certificate of the Takaful Plan for applicable benefits, features and terms and conditions.

2 FAMILY TAKAFUL CERTIFICATE This Family Takaful plan managed by HSBC Amanah Takaful (Malaysia) Berhad provides you with both investment and protection benefits. Takaful is a mutual assistance scheme based on the spirit of brotherhood and solidarity where participants like you agree to assist each other financially in case of certain defined needs. With this intention in mind, a portion of your contribution will be credited monthly into the Family Risk Fund on the basis of Tabarru (donation). This Family Takaful plan is managed in accordance with the Shariah principles guided by our Shariah Committee. In consideration of your participation and contribution, we hereby contract with you on the terms and conditions stated in this Certificate. Any variations or changes to the terms of this Certificate shall only be effective upon our endorsement. The relationship between all participants and HSBC Amanah Takaful (Malaysia) Berhad is based on Wakalah and is governed by this Certificate. This Certificate describes the provisions of this plan in full. Please read this Certificate carefully to ensure that it meets your requirements. PUBLIC Page 2 of 82 HS

3 Family Takaful Certificate / Sijil Takaful Keluarga Contents / Kandungan Page / Muka surat Part 1 Certificate Information Statement... 4 Part 2 General Provisions... 6 Part 3 Participant Fund and Family Risk Fund Part 4 Death Benefit Part 5 Total and Permanent Disability (TPD) Benefit Part 6 Regular Payout Part 7 Contributions, Sum Covered and Fees Part 8 Payor Rider Part 9 Payor Plus Rider Appendix A Definitions of Critical Illnesses Bahagian 1 Penyataan Maklumat Sijil Bahagian 2 Peruntukan Am Bahagian 3 Dana Peserta dan Dana Risiko Keluarga Bahagian 4 Manfaat Kematian Bahagian 5 Manfaat Hilang Keupayaan Menyeluruh dan Kekal (TPD) Bahagian 6 Bayaran Balik Berkala Bahagian 7 Sumbangan, Jumlah Perlindungan dan Fi-fi Bahagian 8 Rider Pembayar Bahagian 9 Rider Tambahan Pembayar Lampiran A Definisi Penyakit Kritikal PUBLIC Page 3 of 82 HS

4 Part 1 Certificate Information Statement 1. You may pay your contribution to us: 1.1. at our Head Office located on 8th Floor, North Tower, No. 2 Leboh Ampang, Kuala Lumpur; 1.2. at any branch of HSBC Bank Malaysia Berhad or HSBC Amanah Malaysia Berhad (collectively HSBC Bank ); or 1.3. by credit card or auto debit - arrangement for this can be made at any HSBC Bank branch. 2. You may nominate a person to receive the benefits payable upon your death under this Certificate either as an executor or a beneficiary. We have prepared standard forms for this purpose but we urge you to ensure that the contents of our standard forms are suitable for your needs and the nominee is aware of your participation in this Certificate. 3. You may notify us in writing to cancel your Certificate within Fifteen (15) days from the date of delivery of this Takaful Schedule and Certificate to the address provided to us in the proposal form ( free-look/cooling-off period ). In such an event and after the refund of your contribution less any medical examination fees incurred by us, we will cancel this Certificate and our liability in respect of your Coverage under this Certificate shall cease. 4. You may notify us in writing to terminate or surrender this Certificate after the free-look/cooling-off period to obtain an amount as prescribed under this Certificate. Kindly note however that doing so would mean losing the benefits under this Certificate and the amount payable may be less than your contributions paid. 5. You have to inform us and provide us with the relevant documents immediately to ensure our services to you are not interrupted: 5.1. if there is any change in your address, contact number or other personal details; or 5.2. if you want to change the person whom you have nominated to receive the benefits payable upon your death under this Certificate. 6. In the event of a claim or prior to any payment of the benefits under this Certificate: 6.1. Satisfactory proof of the age of the Covered Person or Payor, where applicable is required if such age was not admitted or the relevant documents of proof have not been submitted to us before; 6.2. The claim and all documents and information required by us must be furnished to us in writing or in such form or nature as we may require (at no expense to us), within Ninety (90) days of the event giving rise to the claim; and 6.3. For Total and Permanent Disability Benefit claims, the Covered Person or the Payor, where applicable must, if required by us, submit himself to medical examinations by any Registered Medical Practitioners appointed by us (and such medical examinations will be at our expense). No action in law or in equity may be brought in respect of a claim pursuant to this Certificate before the expiration of Sixty (60) days after fully adhering to the conditions precedent prescribed above. PUBLIC Page 4 of 82 HS

5 7. If you wish to seek any further information, update the Covered Person s or your personal details, enquire, provide feedback regarding or dispute our decisions made under this Certificate, we can be reached at: HSBC Amanah Takaful (Malaysia) Berhad Contact Centre P.O. Box 13343, Kuala Lumpur Tel: Fax: BNMLINK, BNMTELELINK and the Ombudsman for Financial Services are set up to offer consumer protection for participants to resolve disputes over claims settlement between the Takaful Operator and participants. Should there be any dispute over claims settlement arising from this Certificate, you may wish to contact or write to the following parties: 8.1 BNMLINK provides face-to-face customer service to walk-in visitors on general enquiries and public complaints. BNMLINK is located at Bank Negara Malaysia s regional offices and the main office is: BNMLINK Bank Negara Malaysia Block D, Jalan Dato Onn Kuala Lumpur 8.2 Alternatively, you may contact BNMTELELINK by telephone, fax, letter or with contact details as follows: Contact Centre (BNMTELELINK) Laman Informasi Nasihat dan Khidmat (LINK) Bank Negara Malaysia P.O. Box Kuala Lumpur Tel: (LINK) Fax: bnmtelelink@bnm.gov.my BNMLINK and BNMTELELINK operating hours are from: Monday Friday, 9.00 a.m p.m. 8.3 Ombudsman for Financial Services (664393P) (Formerly known as Financial Mediation Bureau) Level 14, Main Block Menara Takaful Malaysia No. 4, Jalan Sultan Sulaiman Kuala Lumpur Tel: Fax: enquiry@ofs.org.my Website: PUBLIC Page 5 of 82 HS

6 Part 2 General Provisions 1. Meanings and Definitions In this Certificate, unless there is something in the subject or context inconsistent therewith: Account Value means the amount of your entitlement in respect of the Participant Fund denoted in Ringgit Malaysia. Activities of Daily Living means the following activities: (a) Transfer: the ability to get in and out of a chair without requiring physical assistance; (b) Mobility: the ability to move from room to room without requiring physical assistance; (c) Continence: the ability to voluntarily control bowel and bladder functions such as to maintain personal hygiene; (d) Dressing: the ability to put on and take off all necessary items of clothing without requiring the assistance of another person; (e) Bathing or washing: the ability to wash in the bath or shower (including getting in or out of the bath or shower) or wash by any other means; and (f) Eating: all tasks of getting food into the body once it has been prepared. Certificate means this Family Takaful Certificate, the proposal form, the Takaful Schedule and all endorsements. Certificate Anniversary means each anniversary of the Commencement Date. CI means Critical Illness as defined in Appendix A of this Certificate. Commencement Date means the Commencement Date stated in the Takaful Schedule and is the date on which the Coverage under this Certificate commences. Contribution means the amount stated as Takaful Contribution in the Takaful Schedule. Contribution Term means the period the Contribution for the Coverage for the Covered Person is payable as stated in the Takaful Schedule. Coverage means type of Coverage as stated in the Takaful Schedule. Covered Person means the person named in the Takaful Schedule as the Covered Person for whom the relevant Takaful protection is provided under this Certificate. PUBLIC Page 6 of 82 HS

7 Death Benefit means the benefit payable under Part 4 of this Certificate. Expiry Date means the Expiry Date for the relevant Coverage under this Certificate as stated in the Takaful Schedule and is the date on which the relevant Coverage ends. Family Risk Fund means the Family Risk Fund under Clause 2, Part 3 of this Certificate. Issue Date means the date of the issuance of this Certificate as stated in the Takaful Schedule. Maturity Date means the Maturity Date of this Certificate as stated in the Takaful Schedule. Monthly Deduction means the monthly Tabarru and monthly service fee deduction from your Account Value. Monthly Deduction Due Date means the date of Monthly Deduction with the first deduction on the Commencement Date and subsequent deductions due on the same day of each month as the Commencement Date. However, if the Commencement Date is on the 29th, 30th or 31st day of the month, the subsequent deductions will be due on the last day of each month. Participant, you or your means the person named in the Takaful Schedule as the Participant who participates in the Takaful plan under this Certificate, an assignee or any individual entitled to the Certificate or any benefit thereunder. Only the Participant can exercise all rights, privileges and options provided under this Certificate. Participant Fund means the Participant Fund under Clause 1, Part 3 of this Certificate. Registered Medical Practitioner means a person duly qualified to practise western medicine and who is registered with the appropriate authority in Malaysia to practise medicine within the scope allowed by such authority and by his training, but excludes you, your spouse and your near relative. Regular Payout means the periodic payment from your Account Value under Part 6 of this Certificate. Shariah means Islamic law. Interpretation and decisions by the Shariah Committee shall be binding on all parties to this Certificate. Shariah Committee means the committee constituted by us to advise on the operation of our Takaful business in order to ensure compliance with the Shariah. Sum at Risk means the amount of the benefit for the relevant Coverage under this Certificate payable from the Family Risk Fund. Sum Covered means the amount of the sum covered stated in the Takaful Schedule for each Coverage as may be revised from time to time. PUBLIC Page 7 of 82 HS

8 Tabarru means donation, gift or contribution. In this Certificate, Tabarru means donation for the purpose of Takaful. Takaful means a scheme based on brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to participants of a scheme in case of need whereby the participants mutually agree to contribute for that purpose. Takaful Operator, we, our or us refers to HSBC Amanah Takaful (Malaysia) Berhad. Takaful Schedule means the Takaful Schedule issued by us to you in respect of this Certificate. TPD means Total and Permanent Disability as defined in Part 5 of this Certificate for the relevant Coverage. TPD Benefit means the benefit payable under Part 5 of this Certificate. TPD Limit means the RM2,000, (Ringgit Malaysia Two Million) limit for all Total and Permanent Disability benefits payable under all Family Takaful Certificates (including riders) still in force and issued by us, including this Certificate in respect of the same Covered Person, on a cumulative basis. Wakalah means the appointment by one party of another to act on his behalf. In the context of this Certificate, you are deemed to have appointed us to manage this plan. 2. Misrepresentation 2.1 You are required to exercise reasonable care in answering the proposal form and/or in voluntarily disclosing information to us. If the information you provide is inaccurate or fraudulently made, or we find that you have suppressed any material fact, and such information is important to our decision whether to provide Coverage to you and/or the Covered Person under the Certificate, then we may take certain action(s) as provided in this Certificate. 2.2 Deliberate or Reckless Misrepresentation Where we find any statements, documents, information in relation to this Certificate are untrue, misleading or suppressed information from us ( Misrepresentation ) and:- (a) was made recklessly or intentionally; and (b) are relevant to us in so far as had such information been properly disclosed to us, it would have led to:- (i) our refusal to issue this Certificate or any rider/benefit(s) attached to the Certificate; or (ii) us imposing terms that are less favourable to the Participant and/or the Covered Person then, we may choose to either (a) terminate the Certificate; or (b) terminate any rider/benefit(s) in the Certificate, as the case may be. PUBLIC Page 8 of 82 HS

9 If we choose to terminate the Certificate, we will: (a) refund from the Family Risk Fund, all Tabarru deducted with respect to the Participant and/or the Covered Person, less the total surplus distributed (if any) and any claims paid from the Family Risk Fund under this Certificate from the Commencement Date; and (b) pay your Account Value as at the date of event giving rise to a claim or the date that we decide to terminate this Certificate, whichever is earlier. If we choose to terminate any rider/benefit(s) in the Certificate, we will only refund the Tabarru paid for the rider/benefit(s) less any claims paid with respect to the rider/benefit(s) from the Family Risk Fund. 2.3 Careless or Innocent Misrepresentation If the Misrepresentation was:- (a) unintentional or innocent; and (b) had the condition or statement was correctly or accurately made known to us at the point of inception of the Certificate or any rider/benefit(s); and (i) as a result, we would not have issued the Certificate or a rider/benefit(s) from the very beginning then, we may opt to:- 1) terminate the Certificate and refuse any claim thereunder as if we had never issued the Certificate. The Certificate shall be treated as if it was terminated due to Deliberate or Reckless Misrepresentation; or 2) terminate and refuse any claim for the rider/benefit(s) as if we had never issued the rider/benefit(s). The rider/benefit(s) shall be treated as if it was terminated due to Deliberate or Reckless Misrepresentation; OR (ii) as a result, we would have issued the Certificate or the rider/benefit(s) but on different terms then, we may opt to impose those different terms in the Certificate and those terms may be applied retrospectively from the date of inception of the Certificate or the rider/benefit(s) as if the Certificate or the rider/benefit(s) was issued with those terms; OR (iii) as a result, we would have issued the Certificate or rider/benefit(s) but with higher contribution or higher Tabarru then we may opt to reduce proportionately the benefit PUBLIC Page 9 of 82 HS

10 payable from the Family Risk Fund based on our standard operating methodology for such cases. If the Certificate is not terminated according to Clause 5.1 of this Part 2 or one or more rider/benefit(s) are not automatically terminated under the applicable clauses of this Certificate, we may opt to:- (a) terminate the Certificate or rider/benefit(s) as the case maybe, as if the Certificate or rider/benefit(s) of this Certificate was terminated due to Deliberate or Reckless Misrepresentation; or (b) continue the Certificate or rider/benefit(s) of this Certificate with revised terms or contributions. If we decide to continue the Certificate or one or more of the rider/benefit(s), we will notify you in writing of the revised terms or contributions of the Certificate. You have the choice to accept the revised Certificate or rider/benefit(s), or terminate the revised Certificate or rider/benefit(s) by replying to us in writing within Fifteen (15) days of delivery of revised terms to you. If you decide to terminate the Certificate or any revised rider/benefit(s) the benefits payable would be as if the Certificate or Coverage was terminated due to Deliberate or Reckless Misrepresentation. 3. Adjustment 3.1. If an error or omission is found in any transaction, calculation or operation already performed pursuant to or affecting the application of this Certificate, we may make such corrective adjustments to any balance, amount, number or calculation as we consider practicable, fair and reasonable All payments to be made under this Certificate to or by us will be payable in Ringgit Malaysia. 4. Assignment 4.1. You may assign this Certificate to any third party and we will adhere to the requirements of any such assignment if we have notice of it. We are not responsible for the consequences, validity or effect of any assignment or attempted assignment. 5. Termination 5.1. Regardless of anything contained in this Certificate, this Certificate shall terminate immediately upon: (a) (b) (c) (d) (e) the Maturity Date; or the payment of the surrender value under this Certificate; or the Covered Person s death; or the commencement of the Covered Person s TPD where the TPD Benefit payable under this Certificate is equivalent to the Death Benefit under this Certificate; or the lapsation of this Certificate PUBLIC Page 10 of 82 HS

11 WHICHEVER is earlier. 6. Contribution Break and Lapsation of this Certificate 6.1. If we do not receive the contribution for the Takaful Coverage for this Certificate on the due date and provided your Account Value is sufficient, we will use the amount in your Account Value to pay for the Monthly Deduction until your Account Value is exhausted If your Account Value is insufficient to pay the full amounts due for the Monthly Deduction to maintain the Takaful Coverage under this Certificate, this Certificate will lapse on the next Monthly Deduction Due Date provided your Account Value remains insufficient on such date. 7. Reinstatement 7.1. You may apply to reinstate this Certificate, together with any rider/benefit(s) attached to this Certificate, within One (1) year from the date this Certificate lapsed, provided you have not surrendered this Certificate The reinstatement of this Certificate or a rider/benefit(s) is subject to our underwriting rules, you providing us with such other evidence as we may require and the payment of contribution prescribed by us. It shall be our absolute discretion whether or not to reinstate this Certificate or a rider/benefit(s) If more than One (1) year has passed since this Certificate lapsed, we will not consider reinstating this Certificate If after the reinstatement of this Certificate or a rider/benefit(s), any statements, documents, information in relation to this Certificate or a rider/benefit(s) are found to have been Deliberately/Recklessly Misrepresented (as defined in Clause 2.2 of this Part 2) or Carelessly/Innocently Misrepresented (as defined in Clause 2.3 of this Part 2) to us, then Clause 2.2 of this Part 2 or Clause 2.3 of this Part 2 will be applicable For the avoidance of doubt, all references to the words issue, issued, Commencement Date, inception and from the very beginning in Clause 2.2 and 2.3 of this Part 2 shall be replaced with reinstate, reinstated, Reinstatement Date, reinstatement and from reinstatement respectively. 8. Anti-Money Laundering and Counter Financing of Terrorism 8.1. If we discover or have reasonable suspicion that you are sanctioned under any competent authorities recognised by us or suspected to be/is in breach of any law or this Certificate or any Takaful Coverage under this Certificate is exploited for money laundering activities or to finance terrorism, or if any instruction/request given may lead to a breach of any sanction/law, we reserve the right to reject any instruction/request given or terminate this Certificate or any Takaful Coverage under this Certificate, immediately. In such an event, we shall deal with all contributions paid and all benefits/sum payable in respect of this Certificate or Takaful Coverage in any manner it deems fit, including but not limited to handing it over to the relevant authorities. PUBLIC Page 11 of 82 HS

12 9. Personal Data Protection Act This Clause refers to The Notice to Customers Relating to the Personal Data Protection Act 2010 ( The Notice ) attached to this Certificate You and the Covered Person (if you are not the Covered Person) agree to the content of The Notice, as well as consent and authorise us to the collection, processing and sharing of all your personal data, such as your full name, I/C Number, address and medical records, for the purposes and with the parties stated in The Notice You or the Covered Person (if you are not the Covered Person) can request access to or for correction of your respective personal data or for information regarding policies and practices and kinds of data held by us by filling and returning to us a Data Access Request form, to the address stated in The Notice You or the Covered Person (if you are not the Covered Person) also have the right to request that we stop processing your respective personal data for the purposes of this Certificate by writing to us at the address stated in The Notice after this Certificate is issued. In such an event and to comply with the Personal Data Protection Act 2010, we will pay you the surrender value (if any) payable to you and terminate the Certificate according to Clause We reserve the right to amend The Notice at any time and will place notice of such amendments on our website or via any other mode we view suitable. 10. Collection and Use of Customer Information, Financial Crime Risk Management Activity and Tax Compliance 10.1 This Clause refers to the Collection and Use of Customer Information, Financial Crime Risk Management Activity and Tax Compliance ( Global Clause ) attached to this Certificate. Terms used in this Clause shall have the same meaning as defined in the Global Clause You and all Connected Person(s) agree to the content of the Global Clause as well as consent and authorise us to the collection, processing and sharing of your and/or any Connected Person(s) personal data, such as your full name, I/C Number and address for the purposes and with the parties stated in the Global Clause You agree to inform us promptly, in writing if there are any changes to your or any Customer Information supplied and to promptly respond to any request from us If you or a Connected Person fail to provide us with Customer Information that we request or we have reasonable suspicions regarding the possible commission of a Financial Crime or associated risk, we may:- (a) be unable to provide new Services, or carry out any of your instructions in relation to this Certificate; and/or PUBLIC Page 12 of 82 HS

13 (b) take actions necessary for us or a member of the HSBC Group to meet the Compliance Obligations In addition and subject to Malaysian law and regulations, your or the Connected Person s failure to provide promptly your or a Connected Person s, Tax Information when requested may result in us making our own decision regarding your status or a Connected Person s, including whether to report you or a Connected Person to a Tax Authority, and may require us to withhold amounts as may be legally required by any Tax Authority and paying such amounts to the Tax Authority We reserve the right to amend the Global Clause at any time and will place notice of such amendments on our website or via any other mode we view suitable In the event there are any inconsistency(ies) between this Clause and the Global Clause, the Global Clause will prevail. 11. Interpretation In this Certificate, unless otherwise stated: (a) (b) (c) (d) (e) headings are inserted for convenience only and shall not affect the construction of this Certificate; references to persons shall include a body of persons, associations/societies, partnerships, as well as bodies incorporated and unincorporated; words denoting the singular shall where appropriate include the plural and vice-versa; words denoting a gender shall include every gender; and references to any notice or request to be given to us shall be in writing Each provision of this Certificate is severable and distinct from the others and if one or more of such provisions are or becomes invalid, void or illegal, the enforceability of the remaining provisions of this Certificate shall not in any way be affected or impaired by it If there is any conflict between the English version of this Certificate and any other version, the English version shall prevail. 12. Subject to Laws, Rules and Regulations This Certificate is subject to and shall be performed in accordance with the laws, rules and regulations currently in force in Malaysia and such laws, rules and regulations shall include but shall not be limited to any circulars, directives or guidelines now or hereafter issued by Bank Negara Malaysia (including its Shariah Advisory Council) applicable to the Takaful industry ("Rules and Regulations"). In the event of conflict between the provisions of this Certificate and such Rules and Regulations, the Rules and Regulations shall prevail. PUBLIC Page 13 of 82 HS

14 12.2. We shall have the absolute authority to make any changes that may be required to comply with the Rules and Regulations by written notice to you. 13. Restriction on Certificate This Certificate is intended for distribution only in Malaysia and governed by the laws of Malaysia. If you, or anyone else with authority over or otherwise connected to this Certificate (such as the Covered Person or the beneficiary) is, temporarily or permanently: (a) (b) outside of Malaysia; or otherwise subject to the laws of any other place; such that we reasonably believe that by complying with a particular term or condition of this Certificate we would breach any laws of Malaysia or such other place, then we are entitled not to comply with such term or condition for any period of time we deem necessary, regardless of what such term or condition may provide. This might include declining to service some of your requests related to this Certificate. You agree we will not be liable for any losses, damages, claims, liabilities or costs you or any other relevant person may suffer from our exercise of our rights under this clause. The prior sentence continues to apply even if this Certificate terminates for any reason. 14. Notices 14.1 Any notice may be given to you at the latest address stated in our records by (a) (b) personal delivery and shall be taken to have been received at the time of delivery; or ordinary or registered post (whether AR or not) or courier and shall be taken to have been received on the 3rd day after posting or the 3rd day after despatch to the courier service provider, even though it may later be returned undelivered, or we are not in receipt of the signed AR card or your s acknowledgement of receipt. PUBLIC Page 14 of 82 HS

15 Part 3 Participant Fund and Family Risk Fund 1. Participant Fund 1.1. The contribution paid in respect of the Takaful Coverage under this Certificate less any Wakalah fee will be allocated into the Participant Fund We will manage the Participant Fund in accordance with principles of Shariah and will avoid investing the assets of the Participant Fund in securities and assets prohibited by Shariah Any profits in the Participant Fund (after the deduction under Clause 1.4 of this Part 3) attributable to this Certificate will be allocated into your Account Value but as a reward for managing and administering the Participant Fund, we are entitled to an incentive which comprises up to Ten percent (10%) of any profits in respect of the Participant Fund. The incentive will be deducted before the profits attributable to this Certificate are allocated into your Account Value. Any loss in the Participant Fund attributable to this Certificate shall be fully reflected in your Account Value We will deduct from the Participant Fund all expenses, fees, taxes, duties and other charges incurred in the purchase, sale, investment, valuation and maintenance of securities and assets for the Participant Fund. 2. Family Risk Fund and Surplus Distribution 2.1. The monthly Tabarru will be deducted from your Account Value and credited into the Family Risk Fund managed by us on the basis of Tabarru The Family Risk Fund is for the collective benefit of all its participants and provides a means of financial protection The Family Risk Fund is used to pay the Sum at Risk for the relevant Coverage under this Certificate. No amount in the Family Risk Fund will be used to pay any surrender value or maturity value of this Certificate We will manage the Family Risk Fund in accordance with principles of Shariah and will avoid investing the assets of the Family Risk Fund in securities and assets prohibited by Shariah We are authorised to and may secure retakaful/reinsurance as we see fit in respect of the Family Risk Fund/Takaful Coverage granted under this Certificate. Any reinsurance arrangement will be subject to Shariah Committee approval. The contribution/premium payable in respect of such retakaful/reinsurance shall be paid out of the Family Risk Fund. All proceeds (if any) from the retakaful/reinsurance arrangements will be credited into the Family Risk Fund All costs, expenses, charges and levies for maintaining and investing the assets of the Family Risk Fund PUBLIC Page 15 of 82 HS

16 and any other related expenses shall be borne and paid from the Family Risk Fund At the end of each financial year, the surplus in the Family Risk Fund is determined. Part of the surplus may be retained for contingencies and subject to Clause 2.8 below, the balance will be distributed to eligible participants As a reward for managing and administering the Family Risk Fund, we are entitled to an incentive equal to Fifty percent (50%) of any surplus distributable from the Family Risk Fund. The balance Fifty percent (50%) of any surplus distributable will be distributed among eligible participants and your entitlement will be allocated into your Account Value on a yearly basis If the Family Risk Fund is in deficit, we will grant Qard (interest free loan) from our Operator Fund to rectify the deficit. Future surplus distributable in the Family Risk Fund will be used to repay the Qard before the distribution of any surplus. 3. Top-up Contributions 3.1. You may at the point of application or anytime after the issuance of this Certificate and subject to terms and conditions imposed by us, top-up the Contribution by a lump sum payment ( Lump Sum Top-up ) The Lump Sum Top-up after deducting Wakalah fee will be allocated into the Participant Fund The Sum Covered prescribed in this Certificate shall be increased by the amount of the Lump Sum Topup less the Wakalah fee. 4. Partial Withdrawal and Surrender 4.1. You may surrender this Certificate for your Account Value by written notice to us at any time You may withdraw part of your Account Value ( Partial Withdrawal ) by written notice to us at any time provided that: The amount to be withdrawn must be specified; and Partial Withdrawal will be subject to our terms and conditions at the time of withdrawal including but not limited to requirements on the minimum withdrawal amount, minimum balance in your Account Value after such withdrawal and whether there are any outstanding contributions No request for Partial Withdrawal or surrender will be acted on until we receive the written request for Partial Withdrawal or surrender. In the event of a Partial Withdrawal, the Sum Covered shall decrease by the same amount withdrawn. 5. Maturity Value 5.1. If this Certificate is in force on the Maturity Date, your Account Value at maturity will be payable to you. The payment of this lump sum amount will discharge us from any further liability under this Certificate. PUBLIC Page 16 of 82 HS

17 Part 4 Death Benefit 1. Death Benefit 1.1. The Death Benefit will be payable in one lump sum on the death of the Covered Person provided this Certificate is in force at the date of death The Death Benefit shall consist of: (a) (b) the Sum at Risk of this Coverage; and your Account Value as at the date of death The Sum at Risk for this Coverage is the amount by which the Sum Covered for Death Benefit exceeds your Account Value. If there is no excess, then the Sum at Risk shall be zero. 2. Suicide 2.1. In the event the Covered Person commits suicide (whether while sane or insane) within Twelve (12) months from the Issue Date or the date of reinstatement of this Certificate, whichever is later, no Sum at Risk will be payable In such an event, only your Account Value as at the date of death will be payable. 3. Proportioning 3.1. If any TPD Benefit has been paid, the Sum Covered for death shall be reduced in accordance with Clause 5, Part 5 of this Certificate. 4. Juvenile Lien 4.1. If the Death Benefit is payable in respect of a Covered Person before he attains the age of Four (4) years at his last birthday, the following juvenile lien shall apply: Age at last birthday Percentage of Sum Covered 1 40% 2 60% 3 80% 4 100% 4.2. The juvenile lien shall only apply to the Sum Covered at the Commencement Date, as may be adjusted due to revision in the contribution under Clause 1.3, Part 7 of this Certificate and/or variation in the Sum Covered under Clause 2.1, Part 7 of this Certificate For the avoidance of doubt, the juvenile lien is not applicable to the portion of Sum Covered that has been increased due to any Lump Sum Top-up(s) and decreased due to any Partial Withdrawal(s). PUBLIC Page 17 of 82 HS

18 5. Term 5.1. Unless this Certificate has been terminated earlier under Clause 5.1, Part 2 of this Certificate, the Coverage under this Part 4 shall terminate on its Expiry Date. 6. Discharge 6.1. Payment of the Death Benefit in accordance with this Part 4, shall discharge us from any further liability under this Certificate. PUBLIC Page 18 of 82 HS

19 Part 5 Total and Permanent Disability (TPD) Benefit 1. TPD Benefit 1.1. The Total and Permanent Disability (TPD) Benefit will be payable in one lump sum if the Covered Person suffers TPD before the Certificate Anniversary following the Covered Person s 65th birthday and provided that such Covered Person suffers the TPD continuously for at least Six (6) months The TPD Benefit shall consist of: (a) (b) the Sum at Risk of this Coverage; and your Account Value as at the date of commencement of TPD The Sum at Risk for this Coverage is the amount by which the Sum Covered for TPD Benefit exceeds your Account Value. If there is no excess, then the Sum at Risk shall be zero Regardless of anything in this Certificate, no TPD Benefit shall be payable if the TPD Limit has been reached. 2. TPD Definitions 2.1. In this Certificate, TPD means that the Covered Person: (a) (b) (c) totally and irrecoverably loses sight in both eyes; totally and irrecoverably loses by amputation or loses the use of two (2) limbs at or above the wrist or ankle; or totally and irrecoverably loses sight in one (1) eye and totally and irrecoverably loses by amputation or loses the use of one (1) limb at or above the wrist or ankle If the Covered Person is employed or engaged in any business or activity from which income, profits, commission or compensation is derived at the commencement of the TPD, the meaning of TPD includes the situation where the Covered Person becomes permanently and completely unable to engage in any work, occupation or profession for any compensation, remuneration, profit or gain for the remainder of his lifetime If the Covered Person is unemployed and unengaged in any business or activity from which income, profits, commission or compensation is derived at the commencement of the TPD, the meaning of TPD also includes the situation where the Covered Person is unable to perform at least Three (3) of the Activities of Daily Living for a continuous period of not less than Six (6) months without the aid of another person, the use of mechanical equipment, special devices or other aids or adaptations If the Covered Person is Fifteen (15) years old or below at his last birthday at the commencement of the TPD, the meaning of TPD includes the situation where the Covered Person is totally and permanently PUBLIC Page 19 of 82 HS

20 disabled under constant care. Constant care shall mean the Covered Person, due to accident or sickness, has been rendered disabled to such an extent that he is required to be confined to a home, hospital or other institution in order to receive constant care and medical attention for a continuous period of not less than Six (6) months. 3. Exclusions for TPD Benefit 3.1. The TPD Benefit will not be payable if the Covered Person suffers TPD due to any condition, injury or event which is directly or indirectly caused by or in connection with any: (a) (i) attempted suicide; (ii) (iii) self-inflicted injury; or self-inflicted illness WHETHER attempted/inflicted while sane or insane; (b) (c) (d) (e) (f) (g) (h) participation in any dangerous or professional sporting activity or hobbies, such as but not limited to hang-gliding, ballooning, parachuting, sky-diving, bungee jumping, hunting, mountaineering, water skiing, underwater activities requiring breathing apparatus, or other similar activities; travel in an aircraft, aerial conveyance or device except as a fare-paying passenger in a commercial aircraft licensed for passenger service on a scheduled flight over an established route; racing other than on foot; violation or attempted violation of any law or resistance to arrest; services in armed forces in a war (whether declared or undeclared) or in respect of any orders for war-like operations or restoration of public order; riot, civil commotion, strike or terrorist activities; or wilful misuse of alcohol or taking of drugs other than under the direction of a Registered Medical Practitioner. 4. Juvenile Lien 4.1. If the TPD Benefit is payable in respect of a Covered Person before he attains the age of Four (4) years old at his last birthday, the following juvenile lien shall apply: Age at last birthday Percentage of Sum Covered 1 40% 2 60% 3 80% 4 100% PUBLIC Page 20 of 82 HS

21 4.2. The juvenile lien shall only apply to the Sum Covered at the Commencement Date, as may be adjusted due to revision in the Contribution under Clause 1.3, Part 7 of this Certificate and/or variation in the Sum Covered under Clause 2.1, Part 7 of this Certificate For the avoidance of doubt, the juvenile lien is not applicable to the portion of Sum Covered that has been increased due to any Lump Sum Top-up(s) and decreased due to any Partial Withdrawal(s). 5. Reduced Sum Covered for Death arising from Reduced TPD Benefit 5.1. In the event that the TPD Benefit payable in respect of the Covered Person is less than the Death Benefit (whether due to the TPD Limit or otherwise) under this Certificate ( Reduced TPD Benefit ) the Takaful Coverage in the event of the Covered Person s death shall continue to subsist with a reduced Sum Covered The amount of Reduced TPD Benefit payable from your Account Value is determined by multiplying the amount in Clause 1.2 (b) Part 5 with the following ratio: Reduced TPD Benefit Death Benefit 5.3. The balance of the Reduced TPD Benefit shall be payable from the Family Risk Fund The Sum Covered for death of the Covered Person after the commencement date of TPD, shall be reduced in the same proportion that your Account Value is reduced on payment of the Reduced TPD Benefit. 6. Term 6.1. Unless this Certificate has been terminated earlier under Clause 5.1, Part 2 of this Certificate, the Coverage under this Part 5 shall terminate on its Expiry Date In the event that the Covered Person suffers from TPD that is excluded under this Part 5 where no TPD Benefit is payable, the TPD Coverage under this Part 5 shall terminate on the date that such TPD commenced. 7. Discharge 7.1. Subject to Clause 5 of this Part 5, payment of the Reduced TPD Benefit shall discharge us from any further liability under the TPD Benefit of this Certificate Subject to Clause 5 of this Part 5, payment of the TPD Benefit (where the TPD Benefit is equivalent to the Death Benefit) shall discharge us from any further liability under this Certificate PUBLIC Page 21 of 82 HS

22 Part 6 Regular Payout 1. You may, at anytime, elect to have the Regular Payout in accordance with the following: 1.1. The Regular Payout is 5% of the Sum Covered at the Commencement Date The Regular Payout is payable to you in one lump sum according to the following table: Contribution Term Regular Payout payable at end of: 5-year term 5 th, 10 th, 15 th & 20 th Certificate Year 10-year term 10 th, 15 th & 20 th Certificate Year 15-year term 15 th & 20 th Certificate Year 1.3. The Regular Payout is deducted from your Account Value and is subject to the actual performance of the Participant Fund and is not guaranteed The Regular Payout is subject to our terms and conditions at the time of payout including but not limited to requirements on the minimum balance in your Account Value after such payout and whether there are any outstanding contributions In the event of a Regular Payout, the Sum Covered shall decrease by the same amount paid Regardless of any revision in the contribution or variation in the Sum Covered, the Regular Payout amount will be calculated based on the Sum Covered at the Commencement Date. PUBLIC Page 22 of 82 HS

23 Part 7 Contributions, Sum Covered and Fees 1. Contribution 1.1. This Certificate is issued and the benefits under this Certificate are available to you in consideration of the payment of the prescribed contribution The contribution payable and the frequency of the contribution are as stated in the Takaful Schedule At any Certificate Anniversary, the Participant may by written notice and subject to our rules and regulations, increase or reduce the contribution (if any) under this Certificate. The revised contribution shall be endorsed on the Certificate. The resulting changes in the relevant benefits will be made and the Tabarru will be adjusted accordingly. 2. Variation of Sum Covered 2.1. Upon issuance of the Certificate, the Sum Covered of the Certificate shall be as shown in the Takaful Schedule. The Participant may by written notice subject to our rules and regulations increase or reduce the Sum Covered of the Certificate on any Certificate Anniversary without changing the contribution amount or contribution payment frequency as stated in the Takaful Schedule. In the event of the request for the Sum Covered to be increased, we may require relevant documents and information at the Participant s expense. The new Sum Covered will be endorsed on the Certificate and the Tabarru will be adjusted accordingly. 3. Wakalah Fee 3.1. Each contribution will be subject to a Wakalah fee and the percentages and amounts are prescribed in the Takaful Schedule Each Lump Sum Top-up will be subject to a Wakalah Fee and the percentage is prescribed in the Takaful Schedule. 4. Tabarru 4.1. A monthly Tabarru shall be deducted monthly in advance from your Account Value The Tabarru rate for the Takaful Coverage varies depending on, among other things, the Sum at Risk for this Certificate, the Covered Person s health, age, occupation, lifestyle and participation in any kind of hazardous activities (where applicable) The amount of Tabarru to be deducted for the Takaful Coverage shall be determined by multiplying the applicable Tabarru rate with the Sum at Risk at the Monthly Deduction Due Date. PUBLIC Page 23 of 82 HS

24 5. Monthly Service Fee 5.1. A monthly service fee shall be deducted monthly in advance from your Account Value The monthly service fee (inclusive of GST) is based on the following table: Period Monthly Fee (RM) Contribution Term 6.36 Thereafter Surrender Fee 6.1. There is currently no surrender fee. 7. Change in Fees and Tabarru Rates 7.1. We may revise the Tabarru rates and fee payable or, impose any new fee, such as, surrender or withdrawal fee, at any time, provided we give you at least Three (3) months notice in writing. Revisions shall take effect at the next Certificate Anniversary after the Three (3) months notice period. 8. GST 8.1. Fees, charges and contributions for taxable supplies under this Certificate include GST that you are required to pay and for us to remit to the Royal Malaysian Customs. GST will be deducted from your Account Value as and when fees and charges are charged under this Certificate, while for contribution for taxable supplies, GST will be collected when the payment of contribution is made to the Takaful Operator In addition to the paragraph above and unless specifically exempted, you also agree to pay GST chargeable on other taxable supplies as may be confirmed by the Royal Malaysian Customs from time to time. PUBLIC Page 24 of 82 HS

25 Part 8 Payor Rider (This part with the heading Payor Rider wil only apply if it is listed under the Schedule of Benefits and Contribution in the Takaful Schedule) 1. Meanings and Definitions 1.1. In this Part 8: Rider means the Payor Rider. Payor means the person named in the Takaful Schedule as the Participant on whom this Rider is provided under this Certificate. TPD Limit means the RM2,000, (Ringgit Malaysia Two Million) limit for all Total and Permanent Disability benefits payable under all Family Takaful Certificates (including riders) still in force and issued by us, including this Certificate in respect of the same Payor, on a cumulative basis. 2. Rider 2.1. The Sum at Risk for this Rider will be payable in one lump sum into the Account Value if the Payor: (a) dies; or (b) suffers TPD before the Certificate Anniversary following the Payor s 65th birthday and provided that such Payor suffers the TPD continuously for at least Six (6) months The Sum at Risk for this Rider is: (i) the total contributions payable in respect of the Coverage for the Covered Person as prescribed in the Takaful Schedule, for the unexpired Contribution Term as at the date of death or date of commencement of TPD of the Payor; and (ii) the total contributions paid or payable between the preceding Certificate Anniversary and the date of death or date of commencement of TPD of the Payor. 3. Suicide 3.1. In the event the Payor commits suicide (whether while sane or insane) within Twelve (12) months from the Issue Date of this Rider or the date of reinstatement of this Rider (whichever is later), the Sum at Risk for this Rider will not be payable. PUBLIC Page 25 of 82 HS

26 4. Exclusions for Rider 4.1. The Rider will not be payable if the Payor suffers TPD due to any condition, injury or event which is directly or indirectly caused by or in connection with any: (a) (i) attempted suicide; (ii) self-inflicted injury; or (iii) self-inflicted illness WHETHER attempted/inflicted while sane or insane. (b) participation in any dangerous or professional sporting activity or hobbies, such as but not limited to hang-gliding, ballooning, parachuting, sky-diving, bungee jumping, hunting, mountaineering, water skiing, underwater activities requiring breathing apparatus, or other similar activities; (c) travel in an aircraft, aerial conveyance or device except as a fare-paying passenger in a commercial aircraft licensed for passenger service on a scheduled flight over an established route; (d) racing other than on foot; (e) violation or attempted violation of any law or resistance to arrest; (f) services in armed forces in a war (whether declared or undeclared) or in respect of any orders for war-like operations or restoration of public order; (g) riot, civil commotion, strike or terrorist activities; or (h) wilful misuse of alcohol or taking of drugs other than under the direction of a Registered Medical Practitioner. 5. Rider Tabarru 5.1. A monthly Tabarru for this Rider shall be deducted monthly in advance from your Account Value The Tabarru rate for this Rider varies depending on, among other things, Sum at Risk for this Payor Rider, the Payor s health, age, occupation, lifestyle and participation in any kind of hazardous activities (where applicable) The amount of Tabarru to be deducted for this Rider shall be determined by multiplying the applicable Tabarru rate with the Sum at Risk for this Rider at the Monthly Deduction Due Date. PUBLIC Page 26 of 82 HS

27 6. Rider Termination 6.1. This Rider shall terminate immediately upon: (a) its Expiry Date; or (b) our receipt of instructions from you to terminate this Rider; or (c) (d) the commencement of the Payor s TPD and provided the full amount of the Rider under this Part 8 is payable; or the death of the Payor; or (e) termination of this Certificate. WHICHEVER is earlier In the event that the Payor suffers from TPD that is excluded under this Part 8 where no TPD Benefit is payable, the TPD Coverage under this Part 8 shall terminate on the date that such TPD commenced. However, the Rider Coverage for death shall continue. 7. Reduced Payor Rider for Death arising from Reduced Payor Rider upon TPD 7.1. In the event that the TPD Benefit payable for this Rider is less than the Sum at Risk under this Certificate (whether due to the TPD Limit or otherwise) ( Reduced Payor Rider ), this Rider Coverage for death shall continue The Sum at Risk for this Rider effective from the commencement of TPD shall be reduced by the proportion the Reduced Payor Rider bears to the Sum at Risk at commencement of the TPD. 8. Discharge 8.1. Subject to Clause 7 of this Part 8, payment of the Rider shall discharge us from any further liability under this Rider. PUBLIC Page 27 of 82 HS