We always heard that there
are many instances where few insurance agents do not carry out their duty
professionally as they do not tell the truth with regard to the features of the
insurance products. This situation had
resulted in many disputes during claims and some were repudiated due to
non-coverage. Does similar situation
happen in takaful agency?
Undeniably,
such situation may also happen in takaful business as well as any other sales
activities such as automobile industry, multi-level marketing, health and
beauty, etc. Nevertheless, the frequency of occurrence in Takaful had been significantly
reduced due to various measures taken by the regulator, association as well as
takaful operators.
Under
IFSA 2013, it is clearly stated that a takaful agent shall not
(a) make
a statement which is misleading, false or deceptive, whether fraudulently or
otherwise;
(b) fraudulently
conceal a material fact; or
(c) use
any marketing brochure or product illustration not authorized by the licensed
takaful operator
in
order to induce a person to enter into, vary or renew, a takaful contract which
will render the contract to be voidable.
Furthermore,
Malaysian Takaful Association (MTA), had issued a comprehensive Code of Ethics
to be adhered to by all Takaful agents which describe the details of do’s and
don’t’s while carrying out their duties as Takaful agents. Failure to observe any of the terms and
conditions prescribed in the Code of Ethics may render the agent to be
terminated and the license to be revoked.
Besides
the duties and responsibilities enforced onto the agents, potential customers
shall also exercise their duties diligently to obtain as much information as
possible with regards to the particular takaful product they are interested in
before proceeding to complete the necessary documents. For instance, if you want to purchase a crossbow
equipment for sport, you should obviously need to figure out few things like,
how it works, how to choose the right bow and arrow, where to play and few
precautionary measures as well.
Subsequently, you want to find the best place to purchase them and
perhaps any good deals offering. Similar
process or activities apply when you want to participate in a takaful
plan.
Below
are several questions which Takaful operator must provide with reasonable
explanation in their product disclosure sheet:
1. What
is the product about?
2. What
are the Shariah concepts applicable?
3. What
are the covers/benefits provided?
4. How
much Takaful contributions applicable?
5. What
are the fees and charges applicable?
6. What
are some of the key terms and conditions that potential participant should be
aware of?
7. What
are the major exclusions under the Takaful certificate?
8. Can
the Takaful certificate be cancelled?
9. What
shall the potential participant do if there are changes to his contact details?
10. Where
to get further information?
Nevertheless,
the potential customer must ensure that he obtain further additional
information or explanation for any issues which he has doubt or confusion.
Thus,
the potential participant is also a party to be blamed as well in the event of
any mis-selling as he has ample of opportunity to ensure that the mis-selling
can be avoided.
