How is coverage for fire and named perils provided?

In the event of damage caused by fire or named perils during the coverage period, HLTM Takaful-Houseowner Takaful (Long Term) plan provides Takaful benefit. The payable amount will be made from Risk Fund to the Master Certificateholder or to participant (if financing is completely settled). The named perils include explosion, impact damage by road vehicles or animals, flood, windstorm, aircraft damage, bursting or overflowing of domestic tanks, apparatus or pipes et cetera.

Exclusions to the Takaful coverage

No benefit shall be paid if the loss or damage is caused by war, mutiny, riot, acts of terrorism and other specified events.

How is Participant's contribution allocated?

An upfront wakalah fee will be deducted from the single contribution made by the Participant. The wakalah fee goes into the Operator's fund to cover operating costs. The balance of Participant's single contribution will go into a savings account (Participant's Fund) from which periodic donations (tabarru') will be made into the Risk Fund.

How will the contribution in the Participants' Fund and Risk Fund be invested?

Both funds will be invested in compliance with Shariah principles. The investment profits (in case of Participant's Fund, after deduction of the Operator's share) shall be kept in the respective funds.

How are surpluses, if any, from the Risk Fund treated?

Any surplus exceeding reserves deemed necessary by the Operator may be donated to charitable organizations selected by the Operator as advised by the Operator's Shariah Advisory Committee.

What happens if the Risk Fund is insufficient to pay for the benefits?

The Operator will provide a temporary benevolent loan (Qardl Hasan) to ensure continued solvency of the Risk Fund to pay the benefits. This loan will be repaid in time from the emerging surpluses that may arise in the Risk Fund in subsequent periods.

Notes:

• You should satisfy yourself that the plan will best serve your needs and that the contribution payable under the contract is an amount you can afford.
• This leaflet is merely for simple brief information and is not intended to be the basis of a contract of takaful. The information contained in this leaflet may be changed without prior notice. The precise benefits, terms and conditions and other details of coverage are set out in the Master Certificate.
• In the event of any dispute or ambiguity arising out of the Bahasa Melayu translation in this leaflet, the English version shall prevail.