A manual containing rates for various coverage, information and instructions for field underwriting.
The act of granting any form of inducement, favour or advantage to the purchaser of a policy, which is not available to everybody under standard policy terms.
Restoration of a lapsed policy / certificate through the payment of all outstanding premiums / contributions.
Insurance purchased by an insurance company for the purpose of limiting its own risk and liability for claims. For example, the ABC Insurance Company has just provided a RM1,000,000 fire protection coverage for a building to XYZ Manufacturing Company. Since ABC Insurance Company does not want to be liable for the whole risk, they insured RM500,000 of that coverage with the DEF Reinsurance Company.
Islamic alternative to the reinsurance industry.
The act of paying the premiums / contributions due on a life insurance policy / family takaful certificate every year subsequent to the first year in which the policy / certificate was sold / participated.
Conditions which limit the scope of a life insurance contract. The restrictive group of conditions are designed to eliminate moral and physical hazards which are not taken into account when fixing the premium rate.
Retakaful Operator's Deposit
An amount deposited with or retained by a takaful operator by way of security for performance by the retakaful operator of its retakaful contracts.
The ratio of net contributions to gross direct and retakaful accepted contributions less retakaful within Malaysia.
An attachment to a policy / certificate that modifies its conditions by expanding the benefits under the policy / certificate.
Usury / Interest, which is unlawful in Islam.
Note: The above glossary and explanation do not necessarily bear their legal meanings as they are prepared strictly for the information of readers who are unfamiliar with certain terms and expressions.
- The subject of insurance / takaful cover, whether it be a person or an object.
- Probability of loss / damage to the subject.