HSBC Amanah Takaful (Malaysia) Berhad (Company No M) CERTIFICATE HOMEOWNER

Transcription

1 HSBC Amanah Takaful (Malaysia) Berhad (Company No M) CERTIFICATE HOMEOWNER Please read this Certificate carefully. Version : 08/2016 PUBLIC - 1 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 GENERAL TAKAFUL CERTIFICATE This is a General Takaful plan managed by HSBC Amanah Takaful (Malaysia) Berhad. 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 deposited into the General Risk Fund on the basis of Tabarru (donation). This General Takaful Plan is managed in accordance with the Shariah principles guided by Our Shariah Committee. In consideration of Your participation and Contribution, We agree to manage this General Takaful Plan based on the terms, conditions and benefits as stated in this Certificate. Any variations or changes to the terms of this Certificate shall be effective upon Our endorsement. The relationship between the Participant and HSBC Amanah Takaful (Malaysia) Berhad is based on Wakalah and is governed by this Certificate. This Certificate describes the terms of this plan in full. Please read this Certificate carefully to ensure that it meets your requirements. PUBLIC - 2

3 Contents GENERAL TAKAFUL CERTIFICATE... 2 PART A. CERTIFICATE INFORMATION STATEMENT... 4 PART B. GENERAL PROVISIONS... 6 PART C. CONTRIBUTIONS & FEES PART D. FUNDS PART E. COVERED EVENTS PART F. RISK EXCLUSIONS PART G. HOW TO MAKE A CLAIM PART H. HOW WE WILL SETTLE YOUR CLAIM PART I. CLAUSES PART J. OPTIONAL BENEFITS APPLICABLE ONLY IF SPECIFIED IN THE SCHEDULE PUBLIC - 3

4 Part A. Certificate Information Statement 1. You may pay Your Contribution to Us:- 1.1 at our Head Office located on the 8th Floor, North Tower, No. 2 Leboh Ampang, Kuala Lumpur; 1.2 at any branch of HSBC Bank Malaysia Berhad or HSBC Amanah Berhad ( 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 decline this Certificate by filling up Our cancellation form and returning it to Us within 15 days from the date of delivery of this Certificate to Your last known address that was notified to Us ( cooling-off period ). If You do so, this Certificate will be cancelled and any Contribution paid (if any) will be returned. Accordingly, Our liability under this Certificate shall cease. 3. You may cancel this Certificate at any time after the cooling-off period by filling up Our cancellation form and returning it to Us. The amount to be refunded upon cancellation of the Certificate shall be the pro rata Contribution equal to the unexpired period of Takaful. Subject to our terms and conditions at the time of cancellation, the amount to be refunded upon cancellation may be subject to a contribution retention of RM60 by Us. We may also cancel this Certificate at any time by giving You seven (7) days notice in writing to Your last known address notified to Us and will refund the pro rata Contribution equal to the unexpired period of Takaful. 4. You have to inform and provide Us with the relevant documents immediately to ensure Our services to You under this Certificate are not interrupted, if there is any change in Your address or contact number. 5. You shall use all reasonable diligence and care to keep the Building in proper state of repair. As owner of the Building You shall -make good, as soon as possible, any defect discovered on the Building and shall, in the meantime, take additional precautions to prevent injury, loss or damage. We will not be liable for any injury, loss or damage caused by Your failure to remedy such defect after delivery of a written notice from Us or public body informing You of such defect. 6. You must exercise utmost good faith during the Period of Takaful and immediately write to Us about any change that will increase Our liability under this Takaful Certificate. Unless such change has been agreed by Us by an Endorsement, We will not be liable to pay any Benefit under this Certificate for any loss or damage to the Building. Facts that will affect our liability under this Certificate are: If the Building is used for business, to manufacture, deposit or store merchandise; Of any convictions or prosecutions, (other than for motoring offences) relating to You or Your Family; Of any changes to the Building that will increase the rebuilding cost; If You leave the Building unoccupied for more than 90 days whether consecutively or not in any one period of Takaful Notwithstanding anything in this Certificate, the Takaful Operator reserves the right to cancel this Certificate and/or refuse any claim hereunder if the use of the Building is changed from what is prescribed in this Certificate. 7. If You wish to seek any further information, enquire, provide feedback or dispute regarding our decisions made under this Certificate, We can be reached at: HSBC Amanah Takaful (Malaysia) Berhad Contact Center 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 and write to the following parties: PUBLIC - 4

5 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: 9. Any dispute relating to this Certificate involving amounts equal to or not exceeding RM100, shall be referred to the Ombudsman for Financial Services for settlement. 10. If You are not satisfied with the decision of the Ombudsman for Financial Services or if You and Us are not able to agree on matter relating to this Certificate involving amounts exceeding RM100,000.00, or in general, in relation to the interpretation the Takaful Certificate or the rights or liabilities of the parties under this Takaful Certificate, an Arbitrator shall be appointed by You and Us in writing to resolve this disagreement. If You and Us are not able to agree on who is to be the Arbitrator within one month of being required to do so, then You and We shall be entitled to appoint an Arbitrator each. Both Arbitrators shall then proceed to hear the disagreement together with an Umpire to be appointed by them to preside over their meetings. However, one party is at liberty to appoint a sole Arbitrator should the other party fails to appoint his/her Arbitrator within two months after the delivery of such notice to the other party. Any decision made shall be made in writing and shall be binding on both the Participant and Takaful Operator. The cost of the arbitration shall be decided by the Arbitrator, the Arbitrators or the Umpire. You and Us agree that the awards by the Arbitrator, the Arbitrators or the Umpire shall be obtained first before You can commence legal proceedings against Us. PUBLIC - 5

6 Part B. General Provisions 1. Meanings and Definitions To help You understand Your Certificate, the following words and phrases listed below will have the same meaning wherever they appear in this Certificate:- Benefits means the amount covered, for each Covered Event as indicated in Part E. Building means building of a Private Dwelling House at the premises and includes: all domestic offices, stables; garages and outbuilding on the same premises used solely in connection to it and on the same premises; fixtures and fittings; walls, gates and fences around the premises. Private Dwelling House shall also refer to Building of Flats and Apartments. When Blocks of Flats or Apartments are covered, Private Dwelling House will refer to the Private Flats or Apartments. Certificate means Your Takaful contract which consists of the proposal form, this Certificate, the Schedule and all endorsements. Contribution means -the amount We require You to pay under the Certificate which includes GST. Consequential loss means financial loss. Covered Event means one of the perils listed under Part E. Depreciation means the reduction in the value of the item or property due to wear and tear. Endorsement means a written alteration to the terms, conditions and limitations of this Certificate which is shown on the Schedule. Excess means the amount You must pay towards a claim before We pay. Family and Household means any person(s) who normally reside with You. Fixtures and Fittings means items that are permanently attached to Your building. Flood means the overflowing or deviation from their normal channels of either natural or artificial water courses, bursting or overflowing of public water mains and any other flow or accumulation of water originating from outside the building. General Risk Fund means the risk fund managed by Us for the purposes of this Certificate. It is for the collective benefit and protection of all its participants through the principles of Takaful. GST means Goods and Services Tax at the prevailing GST rate to be charged on Contributions for the provision of taxable supplies under this Certificate. The current prevailing rate is 6%. Incident means any event which might lead to a claim. Indemnity means putting You back to Your same financial position immediately before the loss. Occurrence means the exact period when the Covered Event took place. Open means anywhere at the premises not fully enclosed by walls and a roof and which is not able to be secured, also any out Building on the premises if such Building are not able to be secured. Participant, You, Your means the person named as the participant in the Schedule. Only the Participant can exercise all rights, privileges and options provided under this Certificate. Period of Takaful means the period of Takaful as shown on the Schedule. PUBLIC - 6

7 Personal Information means all information You provide to Us and shall include, but shall not be limited to, Your personal details and details of transactions with or through Us whether within or outside Malaysia involving any party. Premises means the land at the address shown in the Schedule on which the Building is built, including the yard or garden used only for domestic purposes. Sum Covered means the amount You have covered on Your Building as shown in the Schedule. This shall include the Additional Benefits and any of the Optional Benefits selected by You, if any. Tabarru means donation, gift or contribution. In this Certificate, Tabarru means donation for the purposes 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. Schedule means the information page issued by Us for You in respect of this Certificate that contains, among other things, the details of the Benefits which apply and the amount of Contributions payable, the Sum Covered and Warranties as applicable. 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 the General Risk Fund. Warranties means either restriction(s) or obligation(s) in this Certificate imposes on You and that You must comply with it. A breach of a warranty will entitle Us to reject the claim for loss or damage or liability. Wear and tear means damage or a reduction in value through age, ordinary use or lack of maintenance. You or Your refers to the Participant named in the Schedule. 2. Compliance with the Certificate 2.1 Failure to comply with any of the provisions contained in this Certificate may invalidate all claims hereunder. 3. Misrepresentation 3.1 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 under the Certificate, then We may take certain action(s) as provided in this Certificate. 3.2 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) (b) (i) (ii) was made recklessly or intentionally; and are relevant to Us in so far as had such information been properly disclosed to Us, it would have led to:- Our refusal to issue this Certificate or its renewal, as the case maybe; or Us imposing terms that are less favourable to the Participant then, We may choose to cancel or not renew the Certificate. If We choose to cancel the Certificate, We will refund the Tabarru for the Period of Takaful as stated in the Schedule. PUBLIC - 7

8 3.3 Careless or Innocent Misrepresentation If the Misrepresentation was:- (a) (b) (i) (ii) (iii) unintentional or innocent; and had the statement was correctly or accurately made known to Us at the point of inception of the Period of Takaful; and as a result, We would not have issued or renewed the Certificate from the very beginning then, We may opt to cancel the Certificate and refuse any claim thereunder as if We had never issued or renewed the Certificate. The Certificate shall be treated as if it was cancelled due to Deliberate or Reckless Misrepresentation; OR as a result, We would have issued or renewed the Certificate 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 Period of Takaful as if the Certificate was issued with those terms; OR as a result, We would have issued or renewed the Certificate but with higher contribution or higher Tabarru then We may opt to reduce proportionately the benefit payable from the General Risk Fund based on Our standard operating methodology for such cases. If the Certificate is not cancelled or terminated according to Clause 8 or 9, We may opt to:- (a) (b) cancel the Certificate as if the Certificate was cancelled due to Deliberate or Reckless Misrepresentation; or continue the Certificate with revised terms or contributions. If We decide to continue the Certificate, 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 cancel the revised Certificate by replying to Us in writing within 15 days of delivery of revised terms to You. If You decide to cancel the Certificate, the benefits payable would be as if the Certificate was cancelled due to Deliberate or Reckless Misrepresentation. We will refund the the Tabarru for the Period of Takaful as stated in the Schedule. 4. Coverage Clause 4.1 We will cover the Building as shown in the Schedule during the Period of Takaful. This cover will be given on the basis:- (a) That You agree to pay to Us the Contribution for the coverage; and (b) Of the verbal/written information provided by You at the point of entering into this contract. 4.2 In respect of the Covered Events occurring during the Period of Takaful and subject to the limitations, exceptions and conditions contained or endorsed in the Takaful Certificate, We will, by repayment or by reinstatement or repair, indemnify You against loss or damage to the Building as mentioned in the Schedule. 4.3 This Certificate covers You up to the amount of the Sum Covered as stated in the Schedule for loss or damage to Your Building. 5. No Assignment 5.1 This Certificate and the benefits hereunder cannot be assigned and notice of any purported assignment thereof shall accordingly not have any effect. 6. Warranty This Certificate is subject to the following Warranties: 6.1 Restriction of Merchandise Warranty No part of the Building should be used for the manufacture or deposit or storage of merchandise during the Period of Takaful. PUBLIC - 8

9 6.2 Contribution Warranty Contribution due to Us must be paid and received by Us within sixty (60) days from the inception date of this Certificate/endorsement/renewal of the Certificate. If the condition is not complied with, this Certificate shall be automatically cancelled and We shall be entitled to the pro-rated Contribution for the period that You were covered. Where the Contribution payable is received by Our authorised agent, the payment is deemed to be received by Us for the purposes of this warranty. The onus of proving that the Contribution payable was received by a person, including an Takaful agent who was not authorised to receive such Contribution, shall lie with Us. 7. Reinstatement of Sum Covered 7.1 After a loss, the full Sum Covered of this Takaful shall be maintained. You are required to pay an additional pro rata Contribution based on the amount of loss calculated from the date of loss to the expiry date of Takaful. 8. Cancellation 8.1 You may cancel this Certificate at any time after the cooling-off period by filling up Our cancellation form and returning it to Us. The amount to be refunded upon cancellation of the Certificate shall be the pro rata Contribution equal to the unexpired period of Takaful. Subject to our terms and conditions at the time of cancellation, the amount to be refunded upon cancellation may be subject to contribution retention of RM60 by Us. Accordingly and after the refund of part of Your Contribution for the unexpired portion of the Period of Takaful, Our liability under this Certificate shall cease. 8.2 We may also cancel this Certificate at any time by giving You seven (7) days notice in writing to Your last known address known by Us. If You have not made a claim during the subsisting Period of Takaful, You will be entitled to a refund of the part of Your Contribution for the unexpired portion of the Period of Takaful. Accordingly and after the refund of part of Your Contribution for the unexpired portion of the Period of Takaful, Our liability under this Certificate shall cease. 9. Termination 9.1 Regardless of anything contained in this Certificate, this Certificate shall terminate immediately: (a) upon the expiry of the Period of Takaful under the Certificate; or (b) upon the payment of Tabarru for the Period of Takaful under the Certificate; or (c) upon the payment of pro rata Contribution equal to the unexpired period of Takaful under the Certificate WHICHEVER is earlier. 10. Anti-Money Laundering and Counter Financing of Terrorism 10.1 If We discover or have reasonable suspicion that You are or become sanctioned by any competent authorities recognized by Us or that You may be 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 cancel this Certificate or Your Takaful coverage under this Certificate immediately. We may accordingly deal with all contributions paid and all benefits / sums payable in respect of Your Takaful coverage in any manner that We deem appropriate, including but not limited to handing it over to the relevant authorities. 11. Personal Data Protection Act This Clause refers to The Notice to Customers Relating to the Personal Data Protection Act 2010 ( The Notice ) attached to the proposal form You 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, identification documents and address for the purposes and with the parties stated in The Notice You can request access to or for correction of Your 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. PUBLIC - 9

10 11.4 You 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 pro rata Contribution for the unexpired Period of Takaful (if any) and cancel 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. 12. Collection and Use of Customer Information, Financial Crime Risk Management Activity and Tax Compliance 12.1 This Clause refers to the Collection and Use of Customer Information, Financial Crime Risk Management Activity and Tax Compliance ( Global Clause ) attached to the proposal form. 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 (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. 13. Receipts 13.1 Any compensation payable herein shall be payable only to You only and shall be effectual discharge of Our liability. No claim for compensation from any other party shall be entertained. 14. Legal Proceedings 14.1 No action at law or in equity shall be brought to recover on this Takaful Certificate prior to the expiration of sixty (60) days after written proof of loss has been filed in accordance with the requirements of this Takaful Certificate. 15. Interpretation 15.1 In this Certificate, unless otherwise stated: (a) headings are inserted for convenience only and shall not affect the construction of this Certificate; (b) references to persons shall include a body of persons, associations / societies, partnerships, as well as bodies incorporated and unincorporated; (c) words denoting the singular shall where appropriate include the plural and vice-versa; (d) words denoting a gender shall include every gender; and (e) references to any notice or request to be given to the Us shall be in writing. PUBLIC - 10

11 15.2 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. 16. Currency 16.1 Contributions and benefits payable under this Certificate shall be in Ringgit Malaysia. 17. Subject to Laws, Rules and Regulations 17.1 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 any conflict between the provisions of this Certificate and such Rules and Regulations, the Rules and Regulations shall prevail 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. 18. Restriction on Certificate 18.1 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) outside of Malaysia; or (b) 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. 19. Notices 19.1 Any notice may be given to You at the latest address stated in Our records by (a) personal delivery and shall be taken to have been received at the time of delivery; or (b) 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 - 11

12 Part C. Contributions & 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 on or before it fall due. 1.2 The Contribution payable is stated in the Schedule. 1.3 We may revise the Contribution at any time provided We give You at least Three (3) months notice in writing. 2. Contribution Position Upon Cancellation 2.1 If Contribution is paid for any period beyond the cancellation of this Certificate, the unutilized Contribution shall be refunded. 2.2 We shall have a first lien upon all sums payable under this Certificate to secure any unpaid Contribution and We may at any time apply such sums towards the settlement of unpaid Contribution. 3. Wakalah Fee 3.1 Each Contribution will be subject to a Wakalah fee which is payable to Us. 3.2 Under this plan, the Wakalah fee is fixed at 65% of the contribution. 3.3 We may revise the Wakalah fee payable at any time provided We give You at least Three (3) months notice in writing. 4. GST 4.1 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 for Contributions will be collected when the payment of Contribution is made to the Takaful Operator. 4.2 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 - 12

13 Part D. Funds 1. General Risk Fund and Surplus Distribution 1.1 The Contribution paid (less Wakalah fee) for this Certificate will be deposited into General Risk Fund. 1.2 The General Risk Fund is for the collective benefit of all its participants and provides a means of financial protection. 1.3 The General Risk Fund is used to pay the Sum Covered for the relevant coverage under this Certificate. 1.4 We will manage the General Risk Fund in accordance with principles of Shariah and will avoid investing the assets of the General Risk Fund in securities and assets prohibited by Shariah. 1.5 We are authorised to and may secure retakaful / reinsurance as We see fit in respect of the General Risk Fund / Takaful coverage granted under this Takaful Certificate. The contribution / premium payable in respect of such retakaful / reinsurance shall be paid out of the General Risk Fund. All proceeds (if any) from the retakaful / reinsurance arrangements will be credited into the General Risk Fund. 1.6 All costs, expenses, charges and levies for maintaining and investing the assets of the General Risk Fund and any other related expenses shall be borne and paid from the General Risk Fund. 1.7 At the end of each financial year, the surplus in the General Risk Fund is determined. Part of the surplus may be retained for contingencies and subject to Clause 1.8 below, the balance will be distributed to eligible participants. 1.8 As a reward for managing and administering the General Risk Fund, We are entitled to an incentive equal to Fifty percent (50%) of any surplus distributable from the General Risk Fund. The balance Fifty percent (50%) of any surplus distributable will be distributed among eligible participants. If the surplus payable to a participant is less than or equal to RM 10.00, it will be donated to a selected charitable purposes approved by the Takaful Operator s Shariah Committee. 1.9 If the General 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 General Risk Fund will be used to repay the Qard before the distribution of any surplus. PUBLIC - 13

14 Part E. Covered Events Section 1 Loss or Damage to Your Building What is Covered The Building is covered under this section. The maximum amount payable under this section for loss or damage to the Building is the Sum Covered shown in the Schedule. What is Not Covered Household goods, personal effects or any other content of or in the Building. We will not provide cover for loss or damage to Your Building as follows : The causes Covered We will provide cover for loss or damage Building caused by any of the following : to Your The causes not Covered 1) Fire, Lightning, Thunderbolt, Subterranean Fire 2) Explosion 3) Aircraft and Other Aerial Devices and/or articles dropped from them 4) Impact with any of the Building: i) For Private Dwellings, by any road vehicle or animals not belonging to or under the control of: You; or Your family member. a) Vehicle or animals belong to You or Your Family; b) Domestic animals, birds or pets. ii) For Block of Flats or Apartments, by any road vehicles or animals not belonging to or under the control of: You; or Your agent or servant; or Any person resident on the Private Flats or Apartments. 5) Bursting or Overflowing of Domestic Water Tanks, Apparatus or Pipes subject to Excess of RM50 per Incident. a) Destruction or damage occurring while the Private Dwelling House is left unoccupied for more than ninety (90) days whether consecutively or not in any one period of Takaful. b) Damage to the water tanks, apparatus or pipes; or by any gradual cause; 6) Theft, but only if accompanied by actual forcible and violent breaking into or out of a building or any such attempt a) If the Private Dwelling House is unoccupied for more than ninety (90) days whether consecutively or not in any one period of Takaful, the cover will be suspended unless agreed by Us by way of an endorsement. b) Loss or damage due to theft by Your domestic servants or any member of Your family. 7) Hurricane, Cyclone, Typhoon, Windstorm subject to Excess of 1% of the Sum Covered or RM200 whichever shall be less per Incident 8) Earthquake, Volcanic Eruption subject to Excess of 1% of Sum Covered or RM200 whichever shall be a) Loss or damage to : i) any building in the course of construction, reconstruction or repair, unless all outside doors, windows and other openings are complete and protected; ii) metal smoke stacks, awnings, blinds, signs and other outdoor fixtures or fittings including gates and fences. PUBLIC - 14

15 less per Incident 9) Flood subject to Excess of 1% of Sum Covered or RM200 whichever shall be less per Incident. We will either pay You or decide to reinstate, replace or repair the Building covered if loss or damage is caused by the above risks. Excess Clause This is the portion of the claim You have to pay for loss or damage, other than by fire and theft to Your Building (but not the Contents) caused by a Covered Event. We will only pay You above the amount shown in the Schedule less the Excess. However, this Clause will separately apply to: a) Each Building, for which purposes We will treat all covered Building at the same premises as shown in the Certificate Schedule as the same building; and b) Each Incident giving rise to the loss or damage will not be considered as has ended until there have been seven (7) days in a row after the risk concerned is not present. The clause will then apply again. Section 2 Alternative Accommodation or Loss of Rent What is Covered As an owner, You are covered for loss of rent in the event Your Private Dwelling House as stated on the Schedule is no longer habitable, as a result of a Covered Event for the period necessary for reinstatement. As an occupier, We will pay for reasonable additional expenses incurred at a hotel, lodging House or boarding House, as a result of a Covered Event, for the period necessary for reinstatement. What is Not Covered We will not pay if the loss is as a result of damage to the Building not covered by Section 1. The total limit of the benefit shall not exceed ten (10) percent of the Total Sum Covered on Building. This benefit is in additional to the Total Sum Covered as stated on the Schedule. Section 3 Liability to the Public What is Covered We will indemnify You or Spouse Your legal liability in respect of accidents or series of accidents arising out of one occurrence, during the period of Takaful to property or bodily injury to another person, who is not a member of Your family, Household or in Your service: a) Liability as owner of the covered Building caused by a defect in the buildings. b) Liability as an Occupier in respect of accidents which occur in or about the private dwelling house. Our limit of liability shall not exceed the sum of RM 50,000 in any Period Of Takaful. We will also indemnify You or Spouse: i) Legal costs and expenses recoverable from You or Spouse by any claimant, provided such legal cost and expenses were incurred before the date We shall have paid or offered to pay the full amount of the claim or the total amount recoverable in respect of any one occurrence. What is Not Covered a) Any claims brought against You or Spouse, in any country in courts outside Malaysia. b) Any claims brought against anyone who is employed by You under a contract of service or apprenticeship and who is injured during the course of employment. c) All legal costs and expenses which are not incurred in or recoverable in Malaysia. d) We shall not be liable for injury or damage arising out of or incidental to: Ownership, possession or use by or on behalf of You or Spouse of any lift, vehicle, vessel or craft of any kind; The carrying out of alterations, additions, repairs or decorations to Your buildings; Damage to property by subsidence fire or explosion (other than explosion of any domestic boiler fitted in an individual flat or PUBLIC - 15

16 ii) Legal costs and expenses incurred by You or Spouse with Our consent. If Buildings are for Blocks of Flats or Apartment, Our indemnity to You is restricted to Your legal liability for claims made on You as owner of the Buildings, as specified on the Schedule, but not as a resident occupying any part of the covered Buildings in respect of any accident occurring during the period of Takaful. We will indemnify Your personal representative in the event of Your death, in respect of the liability incurred by You or Spouse, provided the personal representative observes and fulfils and is subject to the terms, conditions and limitations of the Certificate. apartment in the covered Building), for Takaful for Private Flats or Apartments; Any contractual agreement; Asbestos or exposure or potential exposure to asbestos, any actual or alleged asbestos related injury or damage involving the use, presence, existence, detection, removal, elimination or avoidance of asbestos; e) Injury or damage arising from pollution or contamination by naturally-occurring or manmade substances, forces (such as radiation) or organisms or any combination of them, if the pollution or contamination: is expected or should have been expected; happened before the commencement of the Period of Takaful; is not reported within 30 days from the end of the Period of Takaful in which it occurred; or is the result of any criminal or deliberate act by You or Your Family. f) Any part of the covered Building used in connection with Your profession or business. PUBLIC - 16

17 Part F. Risk Exclusions General Exception 1 We will not cover loss or damage or other contingency caused directly or indirectly by: a) War, invasion, act of foreign enemy, hostilities, or warlike operations (whether war be declared or not), civil war; b) Mutiny, riot, military or popular uprising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege or any of the events or causes which determine the proclamation or maintenance of martial law or state of siege; c) Any act of terrorism. For this purpose an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or groups of persons, whether acting alone or on behalf of or in connection with any organisations or governments, committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public or any section of the public in fear. Any loss or damage or other contingency happening during the existence of abnormal conditions (whether physical or otherwise) which are caused directly or indirectly, of any of the said occurrences shall be deemed to be loss, damage or a contingency which is not covered by this Takaful. You have to prove that such loss, damage or other contingency happened independently of the existence of such abnormal conditions. In any action, suit or other proceedings, where We alleges that by reason of the provisions of this Condition any loss or damage is not covered by this Takaful, the burden of proving that such loss or damage is covered shall be upon You. General Exception 2 We will not cover loss or damage: (a) caused by cessation of work, or by confiscation, commandeering, requisition or destruction of or damage to the property by order of the Government de jure or de facto or any Public Municipal or Local Authority of the country or area in which the property is situated; (b) to property by its own fermentation, natural heating or spontaneous combustion or by its undergoing any heating or drying process; (c) arising from or in consequence of or contributed to by nuclear weapons material; (d) arising from or in consequence of or contributed to by ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. Solely for this purpose, combustion shall include any self-sustaining process of nuclear fission. General Exception 3 We will not cover Consequential loss or damage of any kind except Loss of Rent. PUBLIC - 17

18 Part G. How to Make a Claim Notice and Proof of Claim You must immediately notify Us in writing of any loss or damage and: at Your own expense and within 30 days after the incident, deliver to Us a claim in writing with detailed particulars and proofs as We may reasonably require; and/or for loss or damage by theft or attempted theft, You must immediately make a Police report. Building Plans If We elect to reinstate any building, You must furnish Us plans, specifications and quantities as We may reasonably require. Liability Claims You shall upon receiving any notice of any accident or claim from other parties, give Us immediate notice in writing and as soon as possible supply Us full particulars in writing. You shall send to Us immediately any writ, summons or other legal process issued or commenced against You and provide all necessary information and assistance to enable Us to settle or resist any claim or institute proceedings. You shall not without Our written consent: admit or repudiate any claim or liability; offer or negotiate to pay a claim. PUBLIC - 18

19 Part H. How We Will Settle Your Claim Permissible Takaful Interest Only You have rights to claim from Us, except upon Your death, or by operation of law, the passing of interest of this Takaful to another person shall only take effect after We have endorsed the same on the Certificate. Market Value We will indemnify You the covered value or the market value of the Building whichever is lower subject to the deduction of any Excess. Market value means the value of the Building at the time of loss or damage less allowance for wear and tear and/or depreciation. The market value shall be determined by a valuation obtained by Us from the: manufacturer, or authorised sole agent or agent, or authorised broker, authorised distributer, or building contractor, or loss adjuster licensed under the Islamic Financial Services Act 2013, or Registered Valuer under the Valuers and Appraisers Act 1981 to be mutually appointed by both You and Us. The valuation so obtained shall be conclusive in any legal proceedings against Us. Our Maximum Liability Our total liability to You in respect of loss or damage during any one period of Takaful will not exceed the amount stated against each item or in the aggregate, the Total Sum Covered specified on the Schedule or such other sum or sums endorsed in this Certificate. Average If the market value of the Building at the time of any loss is collectively of higher value than the sum covered stated in the Schedule, then You will be responsible for the difference and bear a proportional share of the loss. The sharing of proportional loss will apply separately to each item covered. Other Takaful If there are any other policies/certificates covering the same or part of the same loss, damage or liability, We will only pay a share of the total loss, damage or liability proportionally. Subrogation We are entitled to undertake in Your name and on Your behalf: the full conduct, control and settlement of any proceedings; recover compensation or secure indemnity from any third party in respect of anything covered by this Takaful Certificate. at Our own expense and benefit. Fraud We will not pay if Your claim is in any way fraudulent by You or persons acting on Your behalf. Right of Access and Control On the happening of any loss or damage We are entitled to: enter any building where the loss or damage has happened; take and keep possession of the covered property; PUBLIC - 19

20 deal with the salvage of the damaged covered property. However, You shall not abandon the damaged covered property to Us. PUBLIC - 20

21 Part I. Clauses Asbestos Exclusion Clause This Certificate excludes all claims and losses based upon, arising out of, directly or indirectly resulting from or in consequence of, or any way involving: 1. asbestos or exposure or potential exposure to abestos, or 2. any actual or alleged asbestos related injury or damage involving the use, presence, existence, detection, removal, elimination or avoidance of asbestos or exposure or potential exposure to asbestos. Property Damage Clarification Clause Property damage covered under this Certificate shall mean physical damage to the substance of property. Physical damage to the substance of property shall not include damage to data or software, in particular any detrimental change in data, software or computer programs that is caused by deletion, a corruption or a deformation of the original structure. Consequently the following are excluded from this Certificate: 1. Loss of or damage to data or software, but not limited to any detrimental change in data, software or computer programs that is caused by a deletion, a corruption or a deformation of the original structure, and any business interruption Fosses resulting from such loss or damage. Notwithstanding this exclusion, loss or damage to data or software, which is the direct consequence of physical damage to the substance of property, shall be covered. 2. Loss or damage resulting from impairment in the function, availability, range of use accessibility of data, software or computer programs, and any business interruption losses resulting from such loss or damage. Date Recognition Clause It is noted and agreed this Certificate is hereby amended as follows: A. We will not pay for any loss or damage including loss of use with or without physical damage, injury (including bodily injury), expenses incurred or any consequential loss directly or indirectly caused by, consisting of, or arising from, the failure or inability of any computer, data processing equipment, media microchip, operating systems, microprocessors (computer chip), integrated circuit or similar device, or any computer software, whether the property is Yours or not, and whether occurring before, during or after the year 2000 that results from the failure or inability of such device and/or software as listed above to : 1. correctly recognize any date as its true calendar date; 2. capture, save, or retain, and/or correctly manipulate, interpret or process any data or information or command or instruction as a result of treating any date other than as its true calendar date; and/or; 3. capture, save, retain or correctly process any data as a result of the operation of any command which has been programmed into any computer software, being a command which causes the loss of data or the inability to capture, save, retain or correctly process such data on or after any date. B. It is further understood that We will not pay for the repair or modification of any part of any electronic data processing system or any part of any device and/or software as listed above in A. C. It is further understood that We will not pay for any loss or damage including loss of use with or without physical damage, injury (including bodily injury), expenses incurred or any consequential loss directly or indirectly arising from any advice, consultation, design, evaluation, inspection, installation, maintenance, repair or supervision done by You or for You or by or for others to determine, rectify or test, any potential or actual failure, malfunction or inadequacy described in A above. D. It is further understood that We will not pay for any consequential loss resulting from any continuing inability of the computer and equipment described in A above to correctly recognize any date as its true calendar date after the lost or damaged property has been replaced or repaired. Such loss or damage, injury (including bodily injury), expenses incurred or any consequential loss referred to in A, B, C or D above, is excluded regardless of any other cause that contributed concurrently or in any other sequence to the same. This Date Recognition Clause shall not exclude subsequent loss or damage or consequential loss which itself results from an insured peril as defined in the Certificate. PUBLIC - 21

22 Radioactive/Nuclear Energy Risks Exclusion Clause This Takaful does not cover loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any of the following regardless of any other cause or event contributing concurrently or in any other sequence to the loss: 1. ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; 2. the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly of nuclear component thereof; 3. any weapon of war employing atomic or nuclear fission and/or fussion or other like reaction or radioactive force or matter. Clauses Applicable only if specified in the Schedule Mortgagee (Chargee) Clause Loss, if any, payable to the Mortgagee (Chargee) as interest may appear in the Schedule, as to the interest of the Mortgagee (Chargee) only therein, shall not be invalidated by any act or neglect of the Mortgagor (Chargor) or the Owner of the within described property nor any foreclosure or other proceedings or notice of sale relating to the property or by the occupation of the premises for purposes more hazardous than are permitted by this Takaful Certificate, or by the non-occupation thereof, or by any other increase of risk taking place in the property covered hereunder. Provided that in case the Mortgagor (Chargor) or Owner shall neglect to pay any Contribution due under this Takaful Certificate the Mortgagee (Chargee) shall on demand pay the same. Provided also that the Mortgagee (Chargee) shall notify Us any non-occupancy or any change of ownership or occupancy or increase of hazard which shall come to the knowledge of the said Mortgagee (Chargee) and unless permitted by this Takaful Certificate it shall be noted thereon and the Mortgagee (Chargee) shall on demand pay the Contribution for such increased hazard for the term thereof otherwise this Certificate shall be null and void. And it is further agreed that whenever We shall pay the said Mortgagee (Chargee) any sum in respect of loss or damage under this Takaful Certificate and shall claim that as to the Mortgagor (Chargor) or Owner no liability therefor existed, We shall become legally subrogated to all the rights of the Mortgagee (Chargee) to the extent of such payment but not so as to impair the right of the said Mortgagee (Chargee) to recover the full amount of any claim it may have on such Mortgagor (Chargor) or Owner or on any other party or parties covered hereunder of from any securities or funds available. Non-Cancellation Clause And it is further agreed that cancellation of this Takaful Certificate shall not be effected by the Participant except upon prior notification to the Mortgagee (Chargee) in writing giving fourteen (14) days notice to the last known address of the Mortgagee (Chargee). Removal of Debris Clause (Without Separate Sum Covered) The Takaful on Item(s) No(s) as specified in the Schedule hereby covered includes costs and expenses necessarily incurred by You with Our consent in the: a) removal of debris b) dismantling and/or demolishing c) shoring up or propping of the portion or portions of the property covered by this Certificate destroyed or damaged by fire or by any other peril hereby covered against. (Items (b) and (c) above are deemed to be deleted when neither Building nor machinery are covered) The amount payable for such costs and expenses shall not exceeded 10% of the Sum Covered of each Item or Ringgit Malaysia Two Million (RM2,000,000) in aggregate of any one loss, whichever is lower. We will not pay any costs or expenses: i) incurred in removing debris except from the site of such property destroyed or damaged and the area immediately adjacent to such site; ii) arising from pollution or contamination of property not covered by this Certificate. PUBLIC - 22