Surplus Sharing

PruBSN Mutual Assistance_infogrpahic (ENG)_FA

General

As a Participant of our takaful plan, your contribution is retained in your Participant Account where a portion of the contribution will be deducted and pooled into the Tabarru` Fund (or Donation) for the purpose of mutual aid and assistance among fellow Participants. The Underwriting Surplus is the excess in the Tabarru` Fund after deducting all claims payable and reserves. On the other hand, there will be no Underwriting Surplus if there is no excess in the fund after deducting all claims payable and reserves.

Investment Profit earned by the Tabarru` Fund will also contribute to the distribution to Participants. Depending on when your certificate was issued, certificates issued before 5 September 2011, will receive Investment Profit separately to the Underwriting Surplus mentioned above. Certificates issued from 5 Sept 2011 onwards will have their Investment Profit combined with the Underwriting Surplus determined above. This distinction is the result of the Takaful Operational Framework (TOF) implementation by Bank Negara Malaysia (BNM).

The Underwriting Surplus available (if any) will be shared equally between you and PruBSN. Investment Profit will be shared according to the proportion specified in your certificate document between you and PruBSN. Underwriting Surplus and Investment Profit declared are subject to approval by PruBSN Shariah Committee and Board of Directors.

You will be considered for Surplus distribution (if any) on an annual basis, provided that your certificate is in-force on the 31st December of that financial year. Your share of the Surplus Sharing will be dependent on the amount of Tabarru' that you have contributed. However, any claims paid during that financial year would directly reduce the Surplus Sharing of the fund. Therefore, your share of the Surplus Sharing will be reduced/removed due to any claims paid in that financial year.

If the sum of claims paid and payable to you does not exceed the Tabarru' amount paid in that financial year, you are eligible to receive the Surplus Sharing.

The ratio of Surplus Sharing is according to the proportion specified in your certificate document.

Underwriting Surplus is the excess in the Tabarru` Fund after deducting all claims payable and reserves. Investment Profit is the profit arising from investment of Tabarru` Fund.

PruBSN Shareholder’s Fund belongs to PruBSN who act as the Takaful Operator that manage the Takaful operation. There is no Surplus Sharing from this fund.

No, Participants do not have to pay additional contribution for poor investment return on Tabarru` Fund.

Surplus received by Participant is not subject to personal tax.

The mechanism to distribute and allocate the Surplus and Profits to each Participant takes into consideration of Shariah considerations, equity among Participants, as well as the practicality of the distribution. It is in accordance with PruBSN’s Family Takaful Surplus and Investment Profit Management Framework and Policy, approved by relevant parties including the Shariah Committee of PruBSN.

Surplus Payout

For in-force certificates, SMS will be sent to eligible Participant. This surplus amount will also be disclosed in the following year’s Annual Statement to the participants.

For out-of-force certificates, Surplus will be transferred to Participants by way of e-credit into their last known bank account or letter will be issued to the Participants.

Surplus information is also published in the corporate website.

For in-force certificates, Surplus will be credited into participant’s investment account; Participant Unit Account (PUA), Individual Special Account (ISA) or MaxiShield Account (MSA).

For out-of0force certificates, Surplus will be credited by way of e-credit into last known bank account or letter will be sent to request for bank details. If Surplus is less than RM10, the Surplus will be paid to charitable organization(s) managed by PruBSN’s charity arm, PruBSN Prihatin, and subject to approval by PruBSN Shariah Committee.

Surplus for out-of-force certificates shall be paid via e-credit. PruBSN will credit into participant’s bank account for Participants with bank details. PruBSN will communicate with the Participants without bank details for them to register their bank information. 

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