Frequently Asked Takaful Questions (Surplus Distribution)

A portion of your total contribution, after we deduct our Wakalah Fee, is pooled into a common fund called the Risk Fund (RF) as your commitment to make Tabarru’/donation (i.e. Iltizam Bi Al Tabarru’). This enables you to fulfil your obligation of mutual help and joint guarantee should any of your fellow participants suffer a defined loss where your donation is meant to help others and others’ donations are meant to help you.

Actual donation (Tabarru’) is deemed to have occurred only upon payment of claims and claims-related costs from the RF. The balance of the commitment amount remaining in the RF, net of actuarial-related reserves and other costs as approved by Shariah Committee, if any, will be considered as surplus.

Based on our Appointed Actuary’s recommendation, a portion of this surplus may be retained in the RF and the balance will be shared equally between you and us as Surplus Distribution.

On the other hand, there will be no Surplus Distribution if there is no excess in the fund after deducting all claims payable and reserves.

Your portion of Surplus Distribution, if any, is calculated on pro-rata based on the total Tabarru’ you have paid during our financial year and will be payable to you after the closing of our financial year end. However, if the amount payable to you is RM10.00 or less, it will be returned to the RF.

Any Investment Profit arising from the RF will also be included when we calculate the Surplus Distribution.

The Surplus Distribution are subject to the approval of our Shariah Committee and Board of Directors.

You will be considered for Surplus Distribution (if any) on an annual basis, based on the following conditions :

(a) If you do not make any claim during the entire duration of the certificate; and
(b) Your certificate expires within the corresponding financial year that we declare Surplus Distribution on.
(c) HLM Takaful declares surplus at the financial year ended on 30th June on that year.

The payment will be transferred to your account once you have responded to us with your banking information either via weblink or simply fill-up the GIRO Fund Transfer from which was mailed to you together with a copy of the top portion of your bank statement showing the Bank’s Name, Account Holder Name and Account Number for our verification.

You may not receive payment of surplus for a number of reasons which include:

(a) Surplus Distributable to you for a particular certificate is equal to or less than the RM10.00 threshold;
(b) The relevant certificate has been cancelled due to Contribution Warranty;
(c) You have notified claims and it has been processed/paid to you; (d) No Surplus Distribution declared for the particular financial year.

GIRO Fund Transfer Form