TAKAFUL EDUCATION PLAN REGULAR CONTRIBUTION SUMBANGAN BERKALA INVESTMENT-LINKED TAKAFUL PLAN CERTIFICATE SIJIL PELAN TAKAFUL BERKAITAN PELABURAN

Transcription

1 HSBC Amanah Takaful (Malaysia) Berhad (Company No M) TAKAFUL EDUCATION PLAN REGULAR CONTRIBUTION SUMBANGAN BERKALA INVESTMENT-LINKED TAKAFUL PLAN CERTIFICATE SIJIL PELAN TAKAFUL BERKAITAN PELABURAN Certificate Serial No. / No. Siri Sijil: FLAH012 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 EDR082016

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 Investment-linked Funds and Family Risk Fund Part 4 Death Benefit Part 5 Total and Permanent Disability (TPD) Benefit Part 6 Payor Benefit Part 7 Payor Term Benefit Part 8 Contribution, Sum Covered and Fees Part 9 Regular Payout Appendix A Fund Description Bahagian 1 Penyataan Maklumat Sijil Bahagian 2 Peruntukan Am Bahagian 3 Dana-dana Berkaitan Pelaburan dan Dana Risiko Keluarga Bahagian 4 Manfaat Kematian Bahagian 5 Manfaat Hilang Keupayaan Menyeluruh dan Kekal (TPD) Bahagian 6 Manfaat Pembayar Bahagian 7 Manfaat Pembayar Bertempoh Bahagian 8 Sumbangan, Jumlah Perlindungan dan Fi-fi Bahagian 9 Bayaran Balik Berkala Lampiran A Huraian Dana PUBLIC Page 3 of 82 EDR082016

4 Part 1 Certificate Information Statement 1. You may pay your contribution to us: 1.1 at our Head Office located on 8 th 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 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 Account Value based on the Bid Price at the Valuation Date immediately after we receive the cancellation request, Wakalah fee, monthly service fee and Tabarru 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. 3. 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. 4. You have to inform us and provide us with the relevant documents immediately if there is any change in your address, contact number or other personal details to ensure our services to you are not interrupted. 5. In the event of a claim or prior to any payment of the benefits under this Certificate: 5.1 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; 5.2 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 5.3 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. 6. 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: PUBLIC Page 4 of 82 EDR082016

5 7. 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: 7.1 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 7.2 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. 7.3 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 EDR082016

6 Part 2 General Provisions 1. Meanings and Definitions 1.1 In this Certificate, unless there is something in the subject or context inconsistent therewith: Account Value means the total value of your Units held in the Funds with respect to this Certificate. 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) (d) Continence: the ability to voluntarily control bowel and bladder functions such as to maintain personal hygiene; Dressing: the ability to put on and take off all necessary items of clothing without requiring the assistance of another person; (e) (f) 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 Eating: all tasks of getting food into the body once it has been prepared. Bid Price is determined by dividing the net asset value of a Fund by the number of units held in the Fund. Certificate means this Family Takaful Certificate, the proposal form, the Takaful Schedule and all endorsements. Certificate Anniversary means each anniversary of the Commencement Date. Commencement Date means the Commencement Date as stated in the Takaful Schedule and is the date on which the Coverage under this Certificate commences. Contribution Year means the One (1) full year of regular contributions. A Contribution Year shall only be counted as One (1) Contribution Year upon payment of each One (1) full year of regular contributions. 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. Death Benefit means the benefit payable under Part 4 of this Certificate. PUBLIC Page 6 of 82 EDR082016

7 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 9, Part 3 of this Certificate. Fund or Funds means the investment-linked funds managed and administered by us for the purposes of this Certificate as described in Appendix A. Future Contributions means all future regular contributions for the Takaful Coverage under this Certificate that are payable from the next contribution due date. GST means Goods and Services Tax at the prevailing GST rate to be charged on applicable fees, charges and contributions for the provision of taxable supplies under this Certificate. The current prevailing rate is 6%. 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. Payout Period means the period when the Regular Payout is payable. Payor means the person named in the Takaful Schedule as the Participant on whom the Payor Benefit and Payor Term Benefit is provided under this Certificate. Payor Benefit means the benefit payable under Part 6 of this Certificate. Payor Term Benefit means the benefit payable under Part 7 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. PUBLIC Page 7 of 82 EDR082016

8 Regular Payout means a periodic payment withdrawn from the Funds where the quantum shall be determined by the Takaful Operator at the beginning of every Certificate Anniversary during the Payout Period. The duration and amount of the payout is based on several factors which include, the attained age of the Covered Person, Account Value and performance of the investment accumulated in the Funds. 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. 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, Part 6 and Part 7 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. Unit means equal shares of equal value of a Fund. Each unit confers an equal undivided interest. A Unit does not confer any interest in a particular asset but only an interest in the assets of the Fund as a whole, subject to the liabilities of the Fund. The value of each Unit fluctuates based on the underlying performance of the Funds. The performance of such Funds is not guaranteed. Valuation Date is the date determined by the Takaful Operator from time to time for the purpose of determining the Bid Price. The Unit valuation shall be carried out every day when the Takaful Operator s PUBLIC Page 8 of 82 EDR082016

9 main office is open for business unless exceptional circumstances make it impossible or are not conducive to conduct valuations. 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) (b) 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:- (i) (ii) our refusal to issue this Certificate or any rider/benefit(s) attached to the Certificate; or 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. If we choose to terminate the Certificate, we will: (a) (b) 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 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) (b) unintentional or innocent; and 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 PUBLIC Page 9 of 82 EDR082016

10 (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 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) (b) 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 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. 3.2 All payments to be made under this Certificate to or by us will be payable in Ringgit Malaysia. PUBLIC Page 10 of 82 EDR082016

11 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. 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 sell the Units from your Account Value to pay for the Monthly Deduction until your Account Value is exhausted. 6.2 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. PUBLIC Page 11 of 82 EDR082016

12 7.5. 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. 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. 9.2 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. 9.3 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. 9.4 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 PUBLIC Page 12 of 82 EDR082016

13 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) (b) be unable to provide new Services, or carry out any of your instructions in relation to this Certificate; and/or 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 11.1 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 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. PUBLIC Page 13 of 82 EDR082016

14 12. Subject to Laws, Rules and Regulations 12.1 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 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. 13. Restriction on Certificate 13.1 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) (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 EDR082016

15 Part 3 Investment-linked Funds and Family Risk Fund 1. Investment-linked Funds 1.1 The Takaful Operator has established investment-linked funds as described in the Appendix A. The Funds shall be separately identifiable from the Family Risk Fund. 1.2 The Takaful Operator shall have the absolute discretion to manage and invest the assets of the Funds in accordance with the objectives of the Funds and the principles of Shariah. The Takaful Operator may delegate any or all of its management or investment powers of the Funds to any person or fund management company on such terms as the Takaful Operator may deem appropriate. 1.3 The Funds shall retain all income relating to the assets of the Funds subject to deductions for all expenses, fees, taxes, fund audit fee, duties and other charges incurred in the purchase, sale, valuation and maintenance of the investments of the Funds. 1.4 Each of the Funds shall be divided into shares of equal value called Units and each Unit may for the calculations of this Certificate be taken to one-thousandth of one Unit or such other fraction as the Takaful Operator shall determine. 1.5 No Units shall be created in the Funds unless assets of an equivalent value are added to the Funds. No assets shall be deducted from the Funds unless Units of an equivalent value are cancelled. 1.6 The Takaful Operator shall have the absolute authority to do the following which includes but is not limited to: (a) establishing new funds in addition to the Funds; (b) closing a Fund and transferring its assets to a new fund or existing Fund; (c) (d) changing the name of the Funds; splitting or combining existing Units of a Fund; (e) changing or amending the objective the Funds; or (f) suspend Unit pricing and Certificate transactions if any of the exchanges in which the Funds is invested is temporarily suspended for trading. 1.7 The Takaful Operator shall give at least Three (3) months notice in writing to the participants prior to implementing any of the provisions below: (a) closing a Fund and transferring its assets to a new fund or existing Fund; or PUBLIC Page 15 of 82 EDR082016

16 (b) changing or amending the objective the Funds. 2. Valuation of Funds 2.1 The net asset value for a Fund shall be calculated as equal to: (a) the market value of the assets of the Fund; (b) (c) plus cash held in the Fund that are not invested; plus any accrued or attributable income and any other amounts due to the Fund; (d) less any accrued Fund Management Fees; (e) less any expenses incurred in acquisition or maintenance of the assets of the Fund; (f) less any taxes incurred on the income or capital gains on the assets of the Fund or provisions for such taxes due but not yet paid, including provisions for tax on unrealised capital gains where such a tax would be payable if the gains had been realised on the date of the asset was valued; and (g) less any other liabilities of the Fund. 3. Allocation of Units into Funds, Auto Fund Balancing and Top-Up Contribution 3.1 Contribution after deducting Wakalah fee will be allocated into each Fund, as specified by the Participant at point of application or at application for top-up, as the case may be. Such direction by the Participant shall be in the form of a percentage of allocated contribution to be invested into each Fund. 3.2 The Units will be created on the first Valuation Date following the day the contribution is received by the Takaful Operator but no earlier than the contribution due date. The number of Units allocated into each Fund shall be determined by reference to the Bid Price on this Valuation Date. 3.3 The Participant is allowed to modify the instruction/percentage of allocation of regular contribution by submitting an application to the Takaful Operator. All future regular contributions shall be allocated into the respective Funds as per the latest instruction by the Participant. 3.4 The Participant may opt for the value of Units of each Fund in respect of the Participant s Account Value to be re-balanced according to the same proportion as instructed by the Participant ( Auto Fund Balancing ). The Participant s option for Auto Fund Balancing shall be deemed to authorise the Takaful Operator to switch Units between the Funds as per the latest instruction by the Participant. The Valuation Date for such Auto Fund Balancing shall be as determined by the Takaful Operator and the Takaful Operator shall not be liable for any loss of opportunity caused by such automatic balancing or any delay in performing the same. PUBLIC Page 16 of 82 EDR082016

17 3.5 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 Investment-linked Fund. The Sum Covered prescribed in this Certificate not be increased by the amount of the Lump Sum Top-up and shall be subject to terms and conditions imposed by the Takaful Operator. 4. Switching between Funds or New Funds or Closure of Funds 4.1. You may at any time while this Certificate is in force, request for us to sell the Units in your Account Value that are invested in one Fund to purchase Units of another Fund under this Certificate subject to our terms and conditions The number of new Units created in the new Fund shall be determined as follows: Number of Units in the new fund = V C P Where: V = the value of the cancelled Units at the Bid Price at the Valuation Date following your notification. C = the Fund switching fee (if any) as prescribed in Part 8 Contribution, Sum Covered and Fees. P = the Bid Price of the new fund determined at the same Valuation Date as V above We may create additional funds from time to time. You may request to switch or allocate future contributions or both to these additional funds subject to our terms and conditions. Unless otherwise stated, all provisions of this Certificate relating to the Funds shall apply to these additional funds. 4.4 We may at any time, at our absolute discretion, cease to allow the allocation of contributions or Fund switching to any Fund intended to be closed. In such an event, we will give the required written notice of its intention to close a Fund and thereafter on the Valuation Date immediately preceding the effective date of closure of the Fund: (a) re-allocate any contributions of the Participants to other Funds; and (b) switch the existing Units to other Funds, where the number of Units to be debited and credited shall be determined by reference to the Bid Price of the respective Funds. 5. Partial Withdrawal and Surrender 5.1 You may surrender this Certificate for your Account Value by written notice to us at anytime. 5.2 You may withdraw part of your Account Value ( Partial Withdrawal ) by written notice to us at any time provided that; PUBLIC Page 17 of 82 EDR082016

18 The amount and the Fund to be withdrawn must be specified. The number of Units to be withdrawn from the respective Fund will be calculated by dividing the amount to be withdrawn by the applicable Bid Price at the Valuation Date immediately after we approve your request for withdrawal; 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. 5.3 The amount payable for Partial Withdrawal or surrender is subject to a withdrawal or surrender fee, if any. 6. Cut-Off Time 6.1 We will determine the date of receipt of a contribution, request or notification for switching, top-up, withdrawal or surrender before or after the cut-off time determined by us: (a) if the contribution, request or notification is received before the cut-off time, it shall be deemed to have been received on the same day; and (b) if the contribution, request or notification is received after the cut-off time, it shall be deemed received on the next day on which we are open for business. 7. Maturity Value 7.1 If this Certificate is in force on Maturity Date, your Account Value based on the Bid Price at the Valuation Date immediately after the Maturity Date will be payable to you. The payment of this lump sum amount will discharge us from any further liability under this Certificate. 8. Exceptional Circumstances for Deferment of Payment 8.1 We reserve the right to suspend or freeze Unit valuation and defer allocation or redemption of Units, or switching to any of the Funds in respect of this Certificate or the payment benefits for period not exceeding Six (6) months in exceptional circumstances that include but are not limited to including intervening events resulting in the temporary closure of any stock exchange in which the Funds is invested. 9. Family Risk Fund and Surplus Distribution 9.1 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. 9.2 The Family Risk Fund is for the collective benefit of all its participants and provides a means of financial protection. PUBLIC Page 18 of 82 EDR082016

19 9.3 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. 9.4 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. 9.5 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. 9.6 All costs, expenses, charges and levies for maintaining and investing the assets of the Family Risk Fund and any other related expenses shall be borne and paid from the Family Risk Fund. 9.7 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 9.8 below, the balance will be distributed to eligible participants. 9.8 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 to you yearly as additional Units in the Funds. 9.9 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. PUBLIC Page 19 of 82 EDR082016

20 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. 1.2 The Death Benefit shall consist of: (a) the Sum at Risk of this Coverage; and (b) your Account Value based on the Bid Price at the Valuation Date immediately after the date of death. 1.3 The Sum at Risk for this Coverage is the Sum Covered for Death Benefit. 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. 2.2 In such an event, only your Account Value based on the Bid Price at the Valuation Date immediately after 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 Less than 1 20% 1 40% 2 60% 3 80% 4 100% PUBLIC Page 20 of 82 EDR082016

21 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 21 of 82 EDR082016

22 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. 1.2 The TPD Benefit shall consist of: (a) (b) the Sum at Risk of this Coverage; and your Account Value based on the Bid Price at the Valuation Date immediately after the commencement of TPD. 1.3 The Sum at Risk for this Coverage is the Sum Covered for TPD Benefit. 1.4 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. 2.2 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. 2.3 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. 2.4 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 disabled under constant care. Constant care shall mean the Covered Person, due to PUBLIC Page 22 of 82 EDR082016

23 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) 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) (e) (f) 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; (g) (h) 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 Less than 1 20% 1 40% 2 60% 3 80% 4 100% PUBLIC Page 23 of 82 EDR082016

24 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. 6. Term 5.2 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. 5.4 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 Unless the Reduced TPD Benefit has been paid according to Clause 5.1 of this Part 5 or 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 7. Discharge Benefit is payable, the TPD Coverage under this Part 5 shall terminate on the date that such TPD commenced 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 Payment of the TPD Benefit (where the TPD Benefit is equivalent to the Death Benefit) in accordance with this Part 5 shall discharge us from any further liability under this Certificate. PUBLIC Page 24 of 82 EDR082016

25 Part 6 Payor Benefit 1. Meanings and Definitions 1.1. In this Part 6: Future Contributions means all future regular contributions for the Takaful Coverage under this Certificate that are payable from the next contribution due date. 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 (in whatever capacity) on a cumulative basis. 2. Payor Benefit 2.1. The Sum at Risk for this Payor Benefit will be payable in one lump sum into your 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 Payor Benefit is the Future Contributions immediately following the death or TPD of the Payor for which the Payor Benefit is payable. The Units allocated will be determined with reference to the Bid Price at the Valuation Date following immediately after the date of claims payment TPD shall mean that the Payor: (a) totally and irrecoverably loses sight in both eyes; (b) totally and irrecoverably loses by amputation or loses the use of two (2) limbs at or above the wrist or ankle; (c) 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; (d) 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 Payor is employed or engaged in any business or activity from which income, profits, commission or compensation is derived at the commencement of the TPD; or (e) 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 Payor is under Sixty-six (66) years old at age last birthday and is unemployed and unengaged in any business or activity from which income, profits, commission PUBLIC Page 25 of 82 EDR082016