This plan is managed by AIA PUBLIC Takaful Bhd., a Takaful operator licensed under the Islamic Financial Services Act 2013 and regulated by Bank Negara Malaysia.
Contact Details: AIA PUBLIC Takaful Bhd. 201101007816 (935955-M), Menara AIA, 99 Jalan Ampang, 50450 Kuala Lumpur
AIA PUBLIC Takaful Bhd. is a member of PIDM.
The benefit(s) payable under eligible takaful certificates / products is (are) protected by Perbadanan Insurans Deposit Malaysia ("PIDM") up to limits. Please refer to PIDM’s Takaful and Insurance Benefits Protection System ("TIPS") Brochure or contact AIA PUBLIC Takaful Bhd. or PIDM (visit www.pidm.gov.my).
Protect Your Growing Business
Owning a business is one of your biggest achievements in life. In most cases, a business financing is obtained to fund the required capital to start a business. In protecting what you have started and ensuring your business sustainability, Business Financing Term Takaful 2 (BFTT2) is designed to provide you with Takaful coverage for your business financing portfolio to ensure payment of the outstanding financing if any unfortunate event happen.
The person covered under BFTT2 are Directors/Keyman/Shareholders of SME/Private Limited Companies standing as guarantors for the financing and Sole-proprietors/Partners as customers (person taking the financing).
BFTT2 is a Single Contribution group plan and there are 2 options for you to choose from based on your business financing term:
- Reducing – Business Financing Reducing Term Takaful 2 (BFRTT2) for Term Financing-i
- Level - Business Financing Level Term Takaful 2 (BFLTT2) for Cash Line Facility-i
Product Disclosure Sheet
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How Can Business Financing Term Takaful 2 Help You?
- Financing Settlement
- In the event of death or disability of the person covered, the sum covered settles your outstanding financing.
- Hassle Free
- When your business financing is protected, your family members or business partners have nothing to worry about of the payment of the financing should the unexpected event happen to you.
- Freedom to Grow
- Innovate your entrepreneurship in growing the business since your business is protected.
- Anytime, Anywhere
- The protection is guaranteed no matter where you are, 24 hours a day.
What Are The Benefits?
| Plan Options | Sum Covered | Death/Disability | Accidental Death |
|---|---|---|---|
| Business Financing Reducing Term Takaful 2 (BFRTT2) | As the outstanding financing reduces each year, so does the sum covered | Lump sum payment according to the Schedule of Sum Covered or Account Value, whichever is higher | If accidental death occurs within ninety (90) days from the date of Accident, an additional ten percent (10%) of the amount of coverage in accordance with the Schedule of Sum Covered or RM 150,000, whichever is lower, will be payable. |
| Business Financing Level Term Takaful 2 (BFLTT2) | Sum covered is fixed, regardless of the outstanding financing | Lump sum payment according to the Schedule of Sum Covered or Account Value, whichever is higher | Not applicable |
What are the Shariah concepts applicable in BFTT2?
Tabarru' (donation) - The contract applied among the Participants. It is the amount deducted from the Participant’s Account Fund and allocated into the Participants’ Risk Fund as a donation for the purpose of mutual help and assistance to fellow participants in need. The Tabarru’ rate is not guaranteed, and You may need to top up the Contribution if the Tabarru’ rate is revised.
Wakalah (agency) - The contract between the Participant and AIA PUBLIC Takaful Bhd. (as Takaful operator), where the Participant authorises AIA PUBLIC Takaful Bhd. to act on his or her behalf to conduct the affairs of Takaful operations which includes underwriting, investment, certificate servicing and claims processing. AIA PUBLIC Takaful Bhd. will take a portion of the Participant’s contribution as Wakalah Fee in return of these services. In performing the duties under the Wakalah contract, AIA PUBLIC Takaful Bhd. may further delegate or engage any third party to perform relevant task in takaful operations.
Mudarabah (profit sharing) - The contract between Participant and AIA PUBLIC Takaful Bhd., where Participant provides capital in the Participant’s Account Fund to be managed or invested by AIA PUBLIC Takaful Bhd. where any Investment Profit arising from the Participant’s Account Fund is shared between the AIA PUBLIC Takaful Bhd. and Participant in the proportion of 20% and 80% respectively whilst any loss will be borne by the Participant up to the capital value. AIA PUBLIC Takaful Bhd. may further delegate or engage a third party to perform certain tasks that are relevant for the investment activities.
Ju'alah (performance incentive) - Means a reward contract between the Participant and AIA PUBLIC Takaful Bhd. whereby AIA PUBLIC Takaful Bhd. will be entitled to fifty percent (50%) of the Surplus arising from the Participants’ Risk Fund as Ujrah (performance fee) for managing the fund efficiently which result in the Surplus.
Qard (interest-free loan) - An interest-free loan provided by AIA PUBLIC Takaful Bhd. to the Participant Risk Fund (PRF) in the event it becomes deficit to enable it to pay Takaful benefit(s) to eligible Participants. This amount will be recovered from the PRF once the PRF becomes sufficient, before any distribution of surplus is made.
Conditional Hibah (gift) - The Participant will be entitled to fifty percent (50%) from the Participants’ Risk Fund as conditional Hibah, based on their Tabarru’ contribution, on the basis of Ju’alah. If the Person Covered passes away, the death benefit will be given to the nominated beneficiary as a conditional Hibah.
Participants’ Risk Fund (PRF) - PRF is the fund where Tabarru' (donation) is credited into for the purpose of providing mutual protection and meeting claims on the events/risks covered under the Takaful certificate. The actual amount of expenses incurred for direct claims related expenses (e.g. investigation cost) and investment cost directly attributable to PRF (e.g. transaction costs directly attributable to the acquisition of an investment asset of the takaful fund) will be charged to the PRF, as approved by our Shariah Committee. Please note that the expenses are charged at fund level and not to individual certificate.
Participant’s Account Fund (PAF) - The individual PAF is the fund whereby a portion of the contributions paid by the participants after the deduction of Wakalah fee are allocated. The Tabarru' of the basic plan will be deducted from this fund. The actual amount of expenses incurred for investment cost directly attributable to PAF (e.g. transaction costs directly attributable to the acquisition of an investment asset of the takaful fund) will be charged to the PAF, as approved by our Shariah Committee. Please note that the expenses are charged at fund level and not to individual certificate.
What is not covered by BFRTT2 and BFLTT2 ?
Events that are not covered by BFRTT2 and BFLTT2 include:
- For Death:
- Suicide while sane or insane within six (6) months from the effective date of takaful coverage.
- For Total and Permanent Disability:
- Attempted suicide while sane or insane and whether felonious or not, self- inflicted bodily injury, disorderly conduct or deliberate exposure to unnecessary danger; or injuries sustained while engaging in hunting, mountaineering, aviation (except as a fare-paying passenger on a commercial airline), naval, military or aeronautical service, or racing (other than foot-racing) of any kind; or existing conditions at the effective date of takaful coverage.
- For Accidental Death (for BFRTT2 only):
- Suicide or attempt to commit suicide, while sane or insane or self-inflicted injuries; or injuries sustained while under the influence of alcohol, any non-prescribed drugs, narcotic or illegal drugs.
- And other standard exclusions.
The above description, benefits, exclusions, terms and conditions are described in summary and not exhaustive. Details of the complete terms, conditions and exclusions are available in the Takaful Certificate.
To find out more, call us now at our one stop contact centre 603-2170 8000 or visit any of our branches for more information!
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