1.

0 ACKNOWLEDGEMENT

First and foremost, we would like to thank ALLAH S.W.T for giving me the strength,
knowledge, ability and opportunity to undertake this assignment study and to persevere and
complete it satisfactorily. Without his blessings, this achievement would not have been
possible.

In my journey towards this diploma, I have found a lecturer, a friend, an inspiration, a role
model and a pillar of support in our Guide, Madam Umi Nurlisa Binti Jumari. She has
been there providing her heartfelt support and guidance at all times and has given our
invaluable guidance, inspiration and suggestions in our quest for knowledge.

She has given our all the freedom to pursue my assignment, while silently and non-
obtrusively ensuring that I stay on course and do not deviate from the core of my assignment.
Without her able guidance, this assignment would not have been possible and we shall
eternally be grateful to her for his assistance.

We have great pleasure in acknowledging our gratitude to our colleagues and fellow
assignmnent which is our parents in ensuring that the fire keeps burning and being there at
times when we required motivation and propelling our on the course of this assignment.

Their support, encouragement and credible ideas have been great contributors in the
completion of the assignment. I take pride in acknowledging the insightful guidance of our
parents, for sparing their valuable time whenever we approached they and showing us the
way ahead.

We would also like to express our gratitude to our beloved friends, who have been so helpful
and cooperative in giving their support at all times to help us achieve our goal.

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2.0 TABLE OF CONTENT

NO TITLES PAGES

1.0 ACKNOWLEDGEMENT 1

2.0 TABLE OF CONTENT 2

3.0 COMPANY BACKGROUND 3

4.0 FIRE INSURANCE POLICY 10

5.0 PRODUCT ANALYSIS 11

6.0 SIMILIAR PRODUCT OFFERED 26

7.0 RECOMMENDATION 27

8.0 CONCLUSION 28

9.0 REFERENCES 29

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3.0 COMPANY BACKGROUND

3.1 INTRODUCTION ABOUT WHO HSBC AMANAH TAKAFUL, THEIR HISTORY,

THEIR PARTNER AND WHAT THEY OFFER.

HSBC Amanah Takaful Malaysia Berhad is a Takaful operator in Malaysia. Its shareholders are
HSBC Insurance (Asia Pacific) Holdings Limited (49%), JAB Capital Berhad (formerly known as
Jerneh Asia Berhad) (31%) and Employees Provident Fund Board of Malaysia (EPF) (20%).

Officially registered on 11 August 2006, HSBC Amanah Takaful offers a wide range of Family
Solidarity and General Takaful to both consumers and corporate customers.In developing and offering
Takaful solutions to Malaysian consumers, we will leverage on the Group’s international experience
and expertise in Islamic Finance.

3.2 LOGO HSBC AMANAH TAKAFUL

3.3 THEIR VISION AND OBJECTIVES

VISION

“ Bringing together people that make a difference “

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 OBJECTIVES

 To create and introduce financial protection solutions for all Malaysians, respecting the needs of the
Muslim community and service quality demands of the whole society.

 To leverage on HSBC Bank Malaysia Berhad's retail and corporate customer base to market its
products by complementing the Bank's full range of financial/banking solutions with a range of
Family (Life) Takaful and General Takaful products.

 To build an innovative takaful company in Malaysia that will offer international standards with local
characteristics using best practices and building on the HSBC Group's global activities.

 To access the full Malaysian market by establishing partnerships with financial and other institutions,
leveraging on the quality and stability of the HSBC brand.

3.4 ORGANIZATION CHART

BOARD OF
DIRECTOR

SENIOR
SYARI'AH
MANAGEMENT
COMMITTEE
TEAM

OFFICER OFFICER OFFICER

BOARD OF DIRECTOR:-

 Independent non-executive director / chairman (Kassim bin Zakaria)

 Independent non-executive director (Datuk Harun bin Siraj)
 Independent non-executive director (K. Vithyatharan A/L V. Karunakaran)
 Non- independent non-executive director (Sazaliza binti Zainuddin)
 Non-independent non-executie director (Lim Eng Seong)
 Non-independent non-executive director (Ian Keith Moore)

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SENIOR MANAGEMENT TEAM

 Chief executive officer (Yahya Adnan Ahmad)

 Chief operating officer (May Chan Phaik Har)
 Head of human resources for HSBC AMANAH TAKAFUL (Sally Low Poh Hua)
 Financial cotroller (Sanjeev Suresh)
 Head of sales distribution (Noor Azam Mohd Yusof)
 Chief risk officer (Lily Ng)
 Appointed actuary (Eng Yuan Choong)
 Head of compliance (Lim Weng Leong)

SYARI’AH COMMITTEE

 En Muhammad Ali Jinnah Ahmad ( chairman)

 En Khairul Anuar Ahmad (Member)
 Prof Dr Mohamad @ Md Som Sujimon (Member)
 Dr Muhamad Faisal Ashaari (Member
 Dr Ghazali Jaapar (Member)

3.5 CONVENTIONAL OR ISLAMIC

HSBC AMANAH TAKAFUL is one of the Islamic type of insurance company in our
country .

3.5.1 STRENGTH AND WEAKNESS OF ISLAMIC INSURANCE COMPANY

STRENGTH

 INVESTMENT WITHOUT INTEREST OR RIBA’

Islamic insurance is free from interest. It is based on the profit sharing financing technique
called Al Mudarebah. The insurer invests the cumulated money on profit and loss basis, and
yields the profits whereas in the conventional insurance the insurer lends money to the private
sector as well as to the state in the form of security, loan, mortgage, finance, etc. and collects
a fixed interest. This interest added return is not legitimate to a Muslim living in a Muslim
state.

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  FULL RETURN IF UNWILLING TO CONTINUE PREMIUM
Islamic insurance contract binds the insurer to return the premium if the insured is not willing
or not in a position to continue paying the premium. The conventional insurance contract
binds the insured to pay certain number of premiums otherwise the paid premiums are
forfeited. The poor insured suffers double loss i.e. one due to the circumstances, which make
him unable to pay further, and secondly, the insurer takes away his hard earned premiums
which he has paid so far.

 DISTRIBUTION OF ZAKAT
Takaful accumulates the Zakat into a large sum and uses collectively to help to a large
number of people. In conventional insurance each person pays individually. The amount
distributed in bits and pieces does not benefit as many as in the Takaful.

 AGENT’S COMMISSION PAID BY INSURER NOT BY INSURED

In Islamic insurance, the agent gets his commission from the insurer while in the conventional
insurance system it is the insured person who pays the commission. Therefore, the premium is
less in bank insurance as the bank collects the premium directly from the account without
involving any agent. Also, it is seen that the agents offer discount on the premiums as they
sacrifice their own share of the commission and share it with the policy buyer. This shows
that the commission of the agent is charged to the insured.

WEAKNESS

 LACK OF CONSUMER AWARENESS

Despite the introduction of takaful, the increase in the level of penetration anticipated has
yet to be realised.Many consumer are stil unaware of takaful as an alternative, and some
view takaful as commercialisation of conventional insurance into the Islamic world and
reject the notion that it is a syari’ah compliant instrument.

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  SCARCITY OF HUMAN RESOURCES WITH BOTH INSURANCE AND SYARI’AH
EXPERTISE
Future growth may also be hampered by the currently narrow pool of professional sufficient
takaful knowledge in areas such as law, sales and actuarial services. Most operators would
typically employ human resources such as legal advisors and actuaries, with conventional
insurance experience. This resources would typically tend to learn the syari’ah aspect of
takaful and adapt their previous experience to incorporate syari’ah compliance rules in their
new roles.

 REINSURANCE AND RETAKAFUL

There is a lack of capacity within the takaful industry for reinsurance.

 TOO MUCH STRESS ON PROFIT DISTRIBUTION

The most stressed point in the presentation of takaful has been the lure the distribution of
profit among the policy.

3.5.2 DIFFERENCES BETWEEN ISLAMIC AND CONVENTIONAL INSURANCE

COMPANY

ISLAMIC INSURANCE CONVENTIONAL INSURANCE

• Based on mutual cooperation • Based on solely commercial factors

• Free from interest (riba’), gambling
(maysir) and uncertainty (gharar).
• Riba’ free – instrument.
• Surplus belong to the participant and
is accordingly returned to them
• Includes element of interest,
gambling and uncertainty.
• Contain the element of riba’
• Surplus or profit belongs to both the
shareholders and the with-profit
policy holders .The insured is
covered during the policy period but
is not entitled to any return at the end
of such period.

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3.6 TOP 4 BIGGEST AMOUNT THAT HSBC AMANAH TAKAFUL RECEIVE

2012

 Best Bank in Malaysia – The Asset Triple A Country Awards (10th consecutive year)

 Best Islamic Finance Bank in South East Asia (HSBC Amanah Malaysia Berhad) – Alpha
Southeast Asia

 Best Islamic Finance Deal (HSBC Amanah Malaysia Berhad)(Axiata RMB Sukuk) –
Finance Asia

 Islamic Deal of the Year (HSBC Amanah Malaysia Berhad) (Government of Malaysia US2
Billion Dual Tranche Global Sukuk) – The Asset Triple A Asian Awards

 Best Islamic Deal Malaysia (HSBC Amanah Malaysia Berhad) (Government of Malaysia
US2 Billion Dual Tranche Global Sukuk) – The Asset Triple A Asian Awards

 Top Bancatakaful Provider 2011 (HSBC Amanah Takaful (M) Sdn Bhd) – Malaysian
Takaful Association

 Top Bancatakaful Producer (HSBC Amanah Takaful (M) Sdn Bhd) – Malaysian Takaful
Association

2011

 Best Bank – The Asset Triple A Country Awards (9th consecutive year)

 Best Islamic Commodity-Linked Murabaha (Cagamas RM230 million variable Sukuk

Commodity Murabaha. HSBC was Joint Lead Manager) - The Asset Triple A Asian Awards

 Best Islamic Deal Thailand (Trans Thai-Malaysia (Thailand) RM600 million Sukuk. HSBC
was Joint Lead Manager/Bookrunner and Shariah Adviser) - The Asset Triple A Asian Awards

 Best Islamic Deal United Arab Emirates (The National Bank of Abu Dhabi RM500 million
Sukuk. HSBC was Joint Lead Manager/Bookrunner) - The Asset Triple A Asian Awards

 Best Islamic Project Finance (Trans Thai-Malaysia (Thailand) RM600 million Sukuk. HSBC
was Joint Lead Manager/Bookrunner and Shariah Adviser) - The Asset Triple A Asian Awards

 Best Islamic/Most Innovative Islamic Finance Deal Of The Year In Southeast

Asia(Government of Malaysia’s USD1.2 Billion & USD800 Million Wakala Global Sukuk.
HSBC was Joint Lead Managers and Joint Bookrunners) – Alpha Southeast Asia

 Islamic Deal of the Year (Government of Malaysia's US$2 billion dual tranche-sukuk) - IFR
Asian

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AWARD THE LATEST ONE

News Release Restricted ( 30 March 2016 )

HSBC Amanah Takaful named as Best Takaful Operator

HSBC Amanah Takaful was awarded as the Best Takaful Operator for 2014 by the Malaysian
Takaful Association (MTA) at their Takaful Starnite 2015 dinner on 24 March 2015 at Mandarin
Oriental Hotel, Kuala Lumpur.

Competing with sixteen other Takaful operators in Malaysia, HSBC Amanah Takaful has won this
award for four consecutive years. HSBC Amanah bagged the Best Banca Takaful Partner - Financial
Institution (FI) awards for 2014 for the second time.

HSBC frontline staff was also awarded the Best Banca Takaful Producer award. The Takaful Star
nite is a yearly event organised by (MTA) to give recognition of excellent performers among the
Takaful Operators for the period from 1 January 2014 to 31 December 2014. In total there were 6
categories of awards that were contested.

They were the Family Takaful - Individual Business, Family Takaful – Group Business, General
Takaful, Banca takaful, Institution and Special Awards. Best Banca Takaful Producers award went to
frontline staff of the HSBC Petaling Jaya branch while another frontline staff of the HSBC Ipoh
branch came third.

The BancaTakaful Producer award was accredited based on the highest Takaful new business
production in 2014 while meeting the persistency target. HSBC Amanah Takaful said, “This
recognition is reflective of the commitment and dedication that HSBC Amanah Takaful has for its
valued customers in providing innovative protection solutions which are in line with Islamic values.

This is also a showcase of the dedication our employees.” HSBC Amanah Takaful offers a
comprehensive range of products and solutions to meet the protection needs of our customers and
their families.

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 FIRE
INSURANCE
POLICY
BY
HSBC

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5.0 PRODUCT ANALYSIS

5.1 INTRODUCTION

Takaful Basis Of This Certificate

The Risk Fund is therefore a pool of money representing Contributions donated by all Participants out
of which claims are

paid. Any investment gains and losses on the assets of the Risk Fund are credited to it and any costs
involved in arranging the

retakaful placement of the Risk Fund are charged to it. Insurer reserve the right to fully reinsure the
Risk Fund in which case theTakaful protection through co-operative principles under which this
certificate operates are in accordance with the principles of

the Shariah, guided by the Shariah Committee and governed by the relevant Takaful act.

The terms of participation in this Takaful scheme are that insured donate their Contribution to a co-
operative pool of the Risk

Fund for insured benefit on a collective basis. This means insured give up individual rights over
insured Contribution and gain a

collective right of compensation against the covered events within the conditions of insured
certificate. The participation takes

effect based on the period of Takaful as stated in the Schedule.

Risk Fund will be nil and all claims and benefits will be paid under our retakaful programme. Insurer
shall endeavour to retakaful in

compliance with Shariah principles and guidelines prescribed by the relevant authorities.

The Insured Share Of Surplus

A surplus or deficit may arise in the Risk Fund depending on the number and amount of claims paid
on a collective basis and

on the investment performance of the assets in which the Risk Fund is invested. Insurer may put aside
part of this surplus as a

reserve to strengthen the claims paying ability of the Risk Fund. Any surplus after our charges arising
on a pro rata basis

related to insured Contributions accrues to insured certificate over the Period of Takaful protection
and is payable to insured after

the expiry of the Period of Takaful protection. The surplus may not be payable to insured if they have
made claims under insured

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certificate. If there is overall deficit in the Risk Fund, insurer will finance such a deficit as Qard on an
interest free basis out of our

standby capital until the Risk Fund returns to surplus.

Claiming Insured Surplus

Insured will be informed if there is surplus of more than RM10 due to You at Your last known
address to insurer.

If there is a surplus but insured entitlement is less than or equal to RM10, it will be distributed to one
or more registered charities approved by insurer Shariah Committee.

Our Incentive

Insurer strive to manage the Risk Fund in a way that minimises the Takaful risk and maximises the
surplus through application of prudent underwriting policies.

Takaful surplus arises when there is a positive balance from Contributions after paying claims and
setting aside reserves to meet the cost of future payments on claims that have occurred. To be
rewarded for these services

Insurer share 50% of the Takaful surplus and the balance of 50% will be reserved for distribution
amongst eligible Participants.

Our Charge

Insured Contributions will be subject to a Wakalah fee of 50% of the Contribution. This charge is
made against insured

Contribution before it is transferred to the Risk Fund to cover the following: -

 Our costs of sales and administration of the business.

 Our costs of administering the certificate throughout the Period of Takaful protection.
 Our technical services of managing the Risk Fund for the collective benefit of Participants,
making sure that the Takaful

risk is adequately assessed, sufficient reserves are set aside in a timely manner and invested
appropriately.

If insurer wish to vary the amount of this Wakalah fee, insurer shall advise insured in writing before
implementing the change.

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5.3 Condition

1. Misdescription

If there be any material misdescription of any of the property hereby covered, or of any building or
place in which such property is contained, or any misdescription as to any fact material to be known
for estimating the risk, or any comission to state such fact, insurer shall not be liable upon this
Certificate so far as it relates to property affected by any such misdescription, misrepresentation or
comission.

2. Contribution Payment

No payment in respect of any Contribution shall be deemed to be payment to insurer unless a printed
form of receipt for the same signed by an authorised representative or duly appointed Agent of
insurers shall have been given to insured.

3. Co-Insurance/ Takaful

Insured shall give notice to insurer of any Insurance or Takaful already effected, or which may
subsequently be effected, covering any of the property hereby covered, and unless such notice be
given and the particulars of such Insurance.

Takaful be stated or endorsed on this Certificate by or on behalf of insurer before the occurrence of
any loss or damage, all benefits under this Certificate shall be forfeited.

4. Identity / Displacement

any property contained therein subject to increased risk or fire or is otherwise material. All Takaful
under this Certificate:

 on any building or part of any building

 on any property contained in any building; or
 on rent or other subject matter of Takaful in respect of or in connection with any building or
any property contained.

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5. Excluded Cover (i)

Insurer company does not cover :-

 Loss by theft during or after the occurrence of a fire;

 Loss or damage to property occasioned by its own fermentation, natural heating or
spontaneous combustion (except as

may be provided in accordance with Condition 8 (f) or by its undergoing any heating or
drying process; or

 Loss or damage occasioned by or through or in consequence of:

 The burning of property by order of any public authority; or
 Subterranean Fire

6. Excluded Cover (ii)

Insurer company does not cover any loss or damage occasioned by or through or in consequence,
directly or indirectly, of any of the following occurrences, namely :

 Earthquake, volcanic eruption or other convulsion of nature;

 Typhoon, hurricane, tornado, cyclone or other atmospheric disturbance;
 War, invasion, act of foreign enemy, hostilities or warlike operation (whether war be declared
or not) or civil war
 state of siege or any of the events or causes which determine the proclamation or maintenance
of material low
 Mutiny, riot, military or popular rising, insurrection, rebellion, revolution, military or usurped
power, martial low or
 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.

7. Any loss or damage happening during the existence of abnormal conditions (whether physical
or otherwise) which are ;

Occasioned by or Through or in consequence, directly or indirectly, of any of the said occurrence

shall be deemed to be loss or damage which is not covered by this Takaful, except to the extent that
insured shall prove that such loss or damage happened independently of the existence of such
abnormal conditions.

In any action, suit or other proceeding where insurer allege 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 insured.

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8. Change In Risk

Under any of the following circumstances our company cease to attach as regards the property
affected unless insured, before the occurrence of any loss or damage, obtains the sanction from
insurer, signified by endorsement upon the Certificate, by or on

Behalf on insurer:

 If the trade or manufacture carried on be altered, or if the nature of the occupation of or other
circumstances

affecting the building covered or containing the covered property be changed in such a way
as to increase the risk of loss or damage by fire;

 If the building covered or containing the covered property becomes unoccupied and so
remains for a period of more than thirty days.

. Exluded Property

Unless otherwise expressly stated in the certificate this Takaful does not cover ;

 Goods held in trust commission

 Bullion or unset precious stones
 Any curiosity or work of art an amount xceeding RM500
 Manuscripts, plans, drawing, or designs, patterns, models or moulds
 Any loss or damage occasioned by or through or in consequence of the burning, whether
accidental or otherwise, of forests, and the clearing of lands by fire.

10. Marine Clause

This Takaful does not cover by any loss or damage to property which, at the time of the happeningof
such loss or damage, is covered by or would, but for the existence of this certificate, be covered by
any Marine Certificate or Certificates except in respect of any excess beyond the amount which would
have been payable under the Marine Certificate or Certificates had this Takaful not been affected.

11.Cancellation

Insurer can cancel this Certificate at anytime if insurer send seven days' written notice to insured last
address known to insurer. If insured have not made a claim during the then subsisting period of
Takaful, insured will be entitled to a refund of the part of insurd Contribution for the unexpired
portion of the Period of Takaful.

If insured cancel this Certificate, insurer will return any Takaful Contribution insured have paid less
an amount for the period insured were covered as long as insured have not made a claim during that
period. The amount to be refunded upon cancellation of the Certificate shall be subject to the
minimum amount Contribution to be retained by insurer.

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12. Occurrence of a Loss or Damage On the happening of any loss or damage

Insured shall forthwith give notice thereof to insurer and shall within 15 days after the loss or damage,
or such further time as insurer may in writing allow in that behalf, deliver to insurer:

 A claim in writing for the loss or damage containing as particular an account as may be
reasonably practicable of all the several articles or items of property damaged or destroyed,
and of the amount of the loss or damage thereto respectively, having regard to their value at
the time of the loss or damage, not including profit of any kind.
 Particulars of all other Takaful/ Insurances, if any.

Insured shall also at all times at insured own expense produce, procure and give to insurer all such
further particulars, plans, specifications, books, vouchers, invoices, duplicates or copies thereof,
documents, proofs and information with respect to the claim and the origin and cause of the fire and
the circumstances under which the loss or damage occurred, and any matter touching the liability or
the amount of insurer liability as may be reasonably required by or on behalf of insurer together with
a declaration on path or in other legal form of the truth of the claim and of any matters connected
there with.

13. Fire Fighting Expenses The Takaful under this certificate extends to include:

The Takaful under this certificate extends to include ;

 Wages of insured employees other than full-time members of a Works Fire Bridgade
 The cost of replacement of fire fighting appliances and destruction of or damage to materials
 Fire brigades charges

Provided always that the liability to insurer in respect of such wages, costs and charges, shall be
limited to those necessarily and reasonably incurred in extinguishing fires at or adjoining the
situation of the property covered by this certificate or immediately threatening to involve such
property.

14. Takaful Operator's Right

On the happening of any loss or damage to any of the property covered by this , insurer may :-

 Enter and take and keep possession of the building or premises where the loss or damage has
happened;
 Take possession of or require to be delivered to it any of insured property in the building or
on the premises at the time of the loss or damage.
 Keep possession of any such property and examine, sort, arrange, remove or otherwise deal
with the same or
 Sell any such property or dispose of the same for the account of whom it may concern

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15. Fraud

If the claim be in any respect fraudulent, or if any false declaration be made or used in support there
of, or if any fraudulent means or devices are used by insured or anyone acting on insured behalf to
obtain any benefit under this Certificate, or if the loss or damage be occasioned by the wilful act, or
with insured connivance, or if the claim be made and rejected and an action or suit be not commenced
within three months after such rejection, or (in the case of an Arbitration taking place in pursuance of
the 22 Condition of this Certificate) within three months after the Arbitrator or Arbitrators or Umpire
shall have made their award, all benefit under this Certificate shall be forfeited.

16. Option Of Settlement

insurer may at insurer option reinstate or replace the property damaged or destroyed, or any part there
of, instead of paying the amount of the loss or damage, or may join with any other Company or
Takaful Operator in so doing, but insurer shall not be bound to reinstate exactly or completely, but
only as circumstances permit and in reasonably sufficient manner, and in no case shall insurer be
bound to expend more in reinstatement than it would have cost to reinstate such property as it was at
the time of the occurrence of such loss or damage, nor more than the sum covered by insurer there on.

17. Market Value

The market value of the covered property shall for the purpose of this condition be determined by a
valuation obtained by insurer from the manufacturer, authorized sole agent, authorized broker,
authorized distributor or building contractor of the cost of replacement or reinstatement, subject to the
application of appropriate depreciation, of the covered property damaged or loss as it was the time of
the occurance of such damage or loss.

18. Subrogation

Insured shall, at the expense of insurer, do, and concur in doing, and permit to be done, all such acts
and things as may be necessary or reasonably required by insurer for the purpose of enforcing any
rights and remedies, or of obtaining relief or indemnity from other parties to which insured and
insurer shall be or would become entitled or subrogated, upon its paying for or making good any loss
or damage under this Certificate, whether such acts and things shall be or become necessary or
required before or after insured indemnification by insurer.

19. Contribution on Claim Settlement

If at the time of any loss or damage happening to any property hereby covered, there be any other
subsisting Insurance or Takaful coverage, whether effected by insured or by any other person or
persons, covering the same property, insure shall not be liable to pay or contribute more than its
rateable proportion of such loss or damage.

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20. Average Clause

If the property hereby covered shall, at the breaking out of any fire or loss, be collectively of greater
value than the sum covered thereon, then insured shall bear a rateable proportion of the loss
accordingly. Every item, if more than one, of the Certificate shall be separately subject to this
Condition.

21. Reinstatement Of Sum Covered

In consideration of insured undertaking to pay an additional Contribution at the rate stated in the
Schedule on the amount of loss calculated on a pro-rata basis from the date of such loss to the expiry
of the current Period of Takaful, it is agreed that in the event of loss, the Takaful cover hereunder
shall be maintained in force for the full Sum Covered stated in the Schedule.

22. Arbitration

If any difference arises as to the amount of any loss or damage such difference shall independently of
all other questions be referred to the decision of an Arbitrator, to be appointed in writing by the parties
in difference, or, if they cannot agree upon a single Arbitrator, to the decision of two disinterested
persons as Arbitrators, of whom one shall be appointed in writing by each of the parties within two
calendar months after having been required so to do in writing by the other party.

23. Time Limitation

In no case whatever shall insurer be liable for any loss or damage after the expiration of twelve
months from the happening of the loss or damage unless the claim is the subject of pending action or
arbitration.

24. Advice to Us

Every notice and other communication to insurer required by these Conditions must be written or
printed.

25. Meaning

This Certificate and the Schedule herein shall be read together as one contract and any word or
expression to which a specific meaning has been attached in any part of this Certificate or of the said
Schedule shall bear such meaning wherever it may appear.

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26. Anti-Money Laundering And Counter Financing of Terrorism

If the Takaful Operator discovers or has justified suspicion that I am or I become sanctioned by any
competent authorities recognised by the Takaful Operator or that I may be in breach of any law, or
this Takaful Certificate or any Takaful coverage under this Takaful Certificate is exploited for money
laundering activities or to finance terrorism, or if any instruction or request given may lead to a breach
of any sanction law, the Takaful Operator reserve the right to reject any instruction or request given or
terminate this Takaful Certificate my Takaful coverage under this Takaful Certificate immediately.

The takaful operator may accordingly deal with all contributions paid and all benefit or sums payable
on respect of my takaful coverag in any manner that it deems appropriate, including but not limited to
handing them over to the relevant authorities.

27. Data protection and Compliance

Any personal information about insured that has been collected or advised to insurer may be used to
improve the services offered to insured. By participating in this Takaful scheme, insured consent that
insurer may use, disclose, transfer or exchange all personal information provided to insurer:

 to any company or agent of HSBC Group or any third party to facilitate the conduct
of Our business or the operation of Our internal procedures.
 to Bank Negara Malaysia or any other relevant authority;
 to any third party in respect of the insurance or Takaful industry for the maintenance of data-
bases, statistical analysis, anti-fraud, claim verification or operational matters.
 to any third party to prevent, or facilitate the investigation of, criminal activities or for fraud
detection
 to any third party comply with applicable laws and regulations.

Insured agree to keep insurer updated of any changes to such personal information as soon as
practicable. Insurer shall not be held liable for any direct or indirect loss or damage due to any
inaccurate or incomplete personal information provided.

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5.4 Clause

Property damage covered under this certificate shall mean physical damage to the substance. Physical
damage to the substance of property shall not include damage to data or software, change in data,
software or consequently the following are excluded from this certificate -;

 loss of or damage to the data or software, in particular to any denrimental change in data,
software of computer programs that is caused by a deletion, a corruption or a deformation of
the original structures , and any business interruption losses resulting from such loss or
damage. Now with standing this exclusion, loss or damage to data or software, which is the
direct consequence of covered physical damage tp the substance or property, shall be covered.
 Loss or damage resulting from an impairment in the function availability,range of use
accessibility of data, spftware or computer programs and any business interruption losses
resulting from such Foss or damage.

SPECIAL CONDITIONS

 Our liability shall in no case under this Endorsement and the Certificate exceed the sum
covered by each item of the Certificate.
 This Takaful does not cover any loss or damage caused by any aircraft for which permission
to land has been extended by You.


5.4.1 Clause For Earthquake

In consideration of the payment by insured to insurer of an additional Contribution, insurer agree that
not with standing anything stated to the contrary in Condition No. 6 of the Certificate, this Takaful
extends to cover loss or damage directly caused by fire or otherwise occasioned by or through or in
consequence of earthquake and volcanic eruption.

Provided always that all the Conditions of this Certificate shall apply (except in so far as they may be
hereby expressly varied) and that any reference therein to loss or damage by fire shall be deemed to
apply also to loss or damage directly caused by any of the perils which this Takaful extends to include
by virtue of this endorsement.

5.4.2 Clause For Storm Tempest

In consideration of the payment by insured to insurer of an additional Contribution, insurer agree that
not with standing anything stated to the contrary in Condition No. 6 of the Certificate, this Takaful is
extended to cover loss or damage directly caused by fire or otherwise occasioned or through or in
consequences of Hurricane, Cyclone, Typhoon and Windstorm, subject to the following Excess
Clause and Special Condition attached here to.

Provided always that all the Conditions of this Certificate shall apply (except insofar as they may be
hereby expressly varied) and that any reference therein to loss or damage by fire shall be deemed to
apply also to loss or damage directly caused by any of the perils which this takaful extends to include
by virtue of this endorsement.

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5.4.3 Clause For Flood

In consideration of the payment by Insured to Us of an additional Contribution, Insurer agree that not
with standing anything stated to the contrary in Condition No.6 of the Certificate.

Takaful extends to cover loss or damage directly caused by fire or otherwise occasioned by or through
or in consequence of Flood (including overflow of the sea)

Note: Flood, for the purpose of this extension, shall mean the overflowing or deviation from their
normal channels of their 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 covered or
containing the property covered, but excluding loss or damage caused by subsidence or landslip.

SPECIAL CONDITIONS
This endorsement does not extend the Takaful under this Certificate to cover :

 Loss or damage caused by hail whether driven by wind or not

 Loss or damage caused by subsidence or landslip except when this is occasioned

by earthquake or volcanic eruption, provided that these perils are covered against by this
Certificate;

 Loss or damage caused by explosion except as provided in Condition 8(h) of the Certificate

 Loss by reason of any ordinance or law regulating the construction or repair of buildings.

 Consequential Loss of any kind

5.4.4 EXPLOSION (NON-INDUSTRIAL WITHOUT BOILERS)

In consideration of the payment by Insured to Insurer of an additional Contribution, it is hereby

agreed and declared that the Takaful under this Certificate.

Subject to the Special Conditions hereinafter contained, extend to include:-

 Loss or damage to the property covered by fire or otherwise directly caused by explosion, but
excluding loss or damage to boilers, economizers, or other vessels, machinery or apparatus in
which pressure is used or their contents resulting from their explosion.

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SPECIAL CONDITIONS

 If there shall be any other fire insurance or Takaful on the property covered under this
Certificate, We shall be liable only pro-rata with such other fire insurance or Takaful for any loss
or damage by explosion whether or not such other fire insurance or Takaful be extended to cover
loss or damage by explosion.

 Insured shall not be liable under this extension for loss or damage which at the time of the
happening of such loss or damage is covered.

 Insurer shall not be liable under this extension, for loss or damage occasioned by or through
or in consequence, directly or indirectly, of any acts of terrorism committed by a person or
persons acting on behalf of or in connection with any organization.

5.4.5 IMPACT DAMAGE (INCLUDING YOUR OWN VEHICLES)

In consideration of an additional Contribution, Insurer hereby agree and declare that the Takaful under
this Certificate shall extend to include loss or damage to the property described in the Schedule and /
or to walls, gates and fences around and pertaining there to directly resulting from impact by any road
vehicles, animals including any road vehicles, animal belonging to or under the control of Insurer, or
any member of Insurer family, or any person.

Provided always that all the conditions of this Certificate shall apply as if they had been incorporated
herein and for the purpose hereof any loss or damage as aforesaid shall be deemed to be loss or
damage by fire.

5.4.6 RIOT STRIKE AND MALICIOUS DAMAGE (OTHER THAN RESIDENTIAL

PROPERTIES)

In consideration of the payment by Insured to Us of an additional Contribution, it is hereby declared

that notwithstanding anything in the within written Certificate contained to the contrary, this
Certificate shall extend to cover Riot and Strike Damage which for the purpose of this Endorsement
shall mean (subject to the Special Conditions hereinafter contained):- Loss of or damage to property
covered directly caused by:-

 The action of any lawfully constituted authority in suppressing or attempting to suppress any
such disturbance or in minimizing the consequences of any such disturbance;

 The wilful act of any strikes or locked-out worker done in furtherance of a strike or in
resistance to a lock-out; or

 The action of any lawfully constituted authority in preventing or attempting to prevent any
such act or in minimizing the consequences of any such act.

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  SPECIAL CONDITIONS

For the purpose of this Endorsement but not otherwise there shall be substituted for the respectively
numbered Conditions of the Certificate the following:-

Condition 5

This Takaful does not cover:-

 Loss or damage resulting from total or partial cessation of work or the retarding or
interruption or cessation of any process or operation;

 Loss or damage occasioned by permanent or temporary dispossession resulting from

confiscation, commandeering or requisition by any lawfully constituted authority; or

 Loss or damage occasioned by permanent or temporary dispossession of any building

resulting from the unlawful occupation by any person of such building.

 Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or
damage of any kind or description whatsoever;

Condition 6

This Takaful does not cover any loss or damage occasioned by or through or in consequence, directly
or indirectly, of any of the following occurrences, namely:-

 a) War, invasion, act of foreign enemy, hostilities, or warlike operations (whether war be
declared or not)

 b) Mutiny, civil commotion assuming the proportions of or amounting to a popular rising,

military rising, insurrection, rebellion, revolution, military or usurped power

 Any act of terrorism

For this purpose on 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 group of persons, whether acting alone or on
behalf of or in connection with any organization or government, committed for political, religious,
ideological or similar purposes including the intention to influence any government.

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Condition 8
Unless otherwise expressly stated in the Certificate this Takaful does not cover:-

 Bullion or unset precious stones

 Any curiosity or work of art for an amount exceeding RM500.00;

 Manuscripts, plans, drawing or designs, patterns, models or moulds

 Securities, obligations or documents of any kind, stamps, coined or paper money,

cheques, books.

 Explosives and Goods held in trust or on commission

Condition 11

This Takaful may at any time be terminated by Us on notice to that effect being given to You, in
which case We shall be liable to repay a rateable proportion of the Contribution for the unexpired
term from the date of cancellation.

If the Takaful be terminated at Your request We shall retain a Contribution calculated according to its
customary short period scale for the time the said Takaful has been force.

Condition 20

I f the property hereby covered shall at the breaking out of any fire or at the commencement of any
destruction of or damage to such property by any other peril covered against by this Endorsement be
collectively of greater value than the sum covered thereon, then You shall bear on Your own for the
difference and shall bear a rateable share of the amount of the loss accordingly.

Every item, if more than one, of the Certificate shall be separately subject to this condition.

PROVIDED that it is hereby further expressly agreed and declared that:-

 The Special Conditions herein shall apply only to the Takaful granted by this extension and the
Conditions of the Certificate shall apply in all respects to the Takaful granted by the Certificate
as if this Endorsement had not been made thereon.

 All the conditions of this Certificate shall apply in all respects to the Takaful granted by this
extension save in so far as the same are expressly varied by the above Special Conditions and any
reference to fire in the Conditions of the Certificate shall be deemed to include the perils hereby
covered against

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5.4.6 Clause For Bush/ Lalang

In consideration of the payment by You to Us of an additional Contribution, We agree that

notwithstanding anything stated to the contrary in Condition No. 6 of the Certificate, this Takaful
extends to cover loss or damage directly caused by fire or otherwise occasioned by or through or in
consequence of by bush or lalang fire (provided that during the currency of this Certificate every
reasonable effort shall be made to keep Your ground free from lalang and undergrowth).

DAMAGE BY FALLING TREES OR BRANCHES AND OBJECTS THEREFORM

In consideration of the payment by You to Us of an additional Contribution, We agree that this

Takaful extends to cover loss or damage to the property described in the Schedule and/or to walls,
gates and fences around and pertaining thereto directly resulting from damage by falling trees or
branches and objects therefrom, provided that the first RM250.00 of each and every claim under this
endorsement shall be borne by You as ascertained after the application of any condition of average.

5.4.7 Clause for SUBSIDENCE AND LANDSLIP

i) Standard Cover

In consideration of the payment by You to Us of an additional Contribution, We agree that this

Takaful extends to cover loss or damage to the property described in the Schedule caused by
subsidence and or have of the on which the buildings stand or land belonging there to, or landslip
excluding:-

 Loss or damage to or resulting from movement solid floor slabs unless the foundation beneath
the external walls of the buildings are damaged by the same cause and at the same time; or

 Loss or damage occasioned by happening through, or in consequence of:

 Coastal or river erosion; · Demolition, structural alteration or structural

repair; · Defective design or inadequate construction foundations

 In respect of each and every loss, 5% of the total Sum Covered or RM25,000.00, whichever
is the lower, as ascertained after the application of any condition of average.

 Loss or damage to swimming pools, terraces, patios, drives, footpaths, walls, gates or fences
unless the building, its outbuildings or garages are damaged by the same cause and at the
same time

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6.0 SIMILAR PRODUCT OFFERED BY OTHER COMPANY

6.1 COMPANY 1

COMPANY NAME : KURNIA INSURANCE

PRODUCT NAME : KURNIA FIRE INSURANCE (TAKING THE HEAT OFF YOU)

KURNIA INSURANCE

6.2 COMPANY 2

COMPANY NAME : MITSUI SUMITOMO INSURANCE COMPANY) MSIG

MALAYSIA

PRODUCT NAME : FIGHT FIRE WITH FIRE INSURANCE

MITSUI SUMITOMO INSURANCE

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7.0 RECOMMENDATION

 Remove barriers to better customer service. The Insurance Code to streamline insurance
agent workload by providing greater flexibility for agents.

 More attention should be directed towards of the problem of unregulated financial

services providers to improve the environment for legitimate providers, including the
development of more public service announcements advising consumers of certain
activities.

 Use team-building exercises to build cohesive groups. Members need the chance to get to
know each other, and they should be encouraged to talk about how they’d like to work
together.

 Provide some class time for meetings. It is very hard for students to orchestrate their
schedules. Part of what they need to be taught about group work is the importance of
coming to meetings with an agenda, some expectation about what needs to get done.

 Thoughtfully consider group formation. Most students prefer forming their own groups,
and in some studies these groups are more productive. In other research, students in these
groups “enjoy” the experience of working together, but they don’t always get a lot done.
In most professional contexts, people don’t get to choose their project partners. If the
goal is for students to learn how to work with others whom they don’t know, then the
lecturer should form the groups.

 Require individual members to keep track of their contributions. The final project should
include a report from every member identifying their contribution to the project. If two
members report contributing the same thing, the lecturer defers to the student who has
evidence that supports what the student claims to have done.

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8.0 CONCLUSION

Insurance is an integral part of any personal financial plan. The type of insurance and the
amount of coverage that we obtain all depends on our unique financial and family
circumstances, and must be evaluated carefully. When considering purchasing coverage, we
should review all the potential risks and the financial impact of these risks on our financial
health. This will help us to determine what options to look for and what questions to ask.
What we need to keep in mind is that we do not want to be underinsured or overinsured,
which means you have to do your homework before you buy. And as with any type of
financial product, we must read the fine print and consult with a competent advisor.

So, Insurance is a form is risk management in which the insured transfers the cost of potential
loss to another entity in exchange for monetary compensation known as the premium.

Insurance works by pooling risks. Because the number of insured individuals is so large,
insurance companies can use statistical analysis to project what their actual losses will be
within the given class. This allows the insurance companies to operate profitably and at the
same time pay for claims that may arise.

Next, Underwriting is the process of evaluating the risk to be insured. This is done by the
insurer when determining how likely it is that the loss will occur, how much the loss could be
and then using this information to determine how much you should pay to insure against the
risk.

The insurance contract is a legal document that spells out the coverage, features, conditions
and limitations of an insurance policy.

Property and casualty insurance is insurance that protects against property losses to your
business, home, or car and/or against legal liability that may result from injury or damage to
the property of others. This type of insurance can protect a person or a business with an
interest in the insured physical property against losses.

Lastly, Every insurance company authorized to do business in this state shall collect, in
addition to the applicable premium charge, a fire insurance fee, separately identified and
charged to each policyholder, from each such holder of a policy issued in the state or for
delivery in the state for coverage of peril of fire, excluding a policy for protection of
household furnishings and or policies issued to protect one or two-family residential
structures, schools, churches and hospitals.

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9.0 REFERENCES

WEBSITES

http://shodhganga.inflibnet.ac.in/bitstream/10603/21613/4/04_acknowledgement.pdf

http://www.dfs.ny.gov/insurance/ogco2009/rg091001.htm

https://www.trustedchoice.com/catastrophe-insurance/fire-coverage/

http://www.dfs.ny.gov/insurance/ogco2009/rg090606.htm

https://www.google.com/search?q=FIRE+INSURANCE&oq=FIRE+INSURANCE&aqs=chr
ome..69i57j69i60l3.4032j0j8&sourceid=chrome&ie=UTF-8

https://www.hsbc.com.my/1/2/miscellaneous/awards-list)

(file:///C:/Users/Shahrin%20Yahiya/Downloads/30mac2015-press-release-hsbc-amanah-takaful-
named-as-best-takaful-operator-in-malaysia.pdf

BOOK

Risk and Insurance Textbook

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