Section 2

In this Order, unless the context otherwise requires –

“accounting period”, in relation to any takaful operator, means the period for which the takaful operator makes up the accounts of the takaful business carried on by him in Brunei Darussalam; but, unless in any particular case the Authority

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allows those accounts to be made up for a longer or shorter period, every accounting period for which those accounts have not been made up before the commencement of this Order shall be a period of one year beginning from the commencement of that business or from the end of the preceding accounting period; and “initial accounting period”, in relation to any existing takaful operator, means the accounting period beginning with the 1st. January, 2008, or, if the takaful operator has no such accounting period, the first accounting period beginning thereafter;

“actuary” means a Fellow of the Institute of Actuaries in England, a Fellow of the Faculty of Actuaries in Scotland, a Fellow of the Society of Actuaries in the

United States of America, a Fellow of the Canadian Institute of Actuaries, the

Australian Institute of Actuaries or any person holding an equivalent qualification and approved in writing by the Authority as an actuary for the purposes of this Order;

“adjuster” means any person who for compensation, fee, commission or salary investigates and negotiates settlement of claims arising under takaful contracts, solely on behalf of either the takaful operator or the participant;

“annuity” means a right to a series of periodical payments at intervals of one year or less under a contract with a family takaful;

“Authority” means the Autoriti Monetari Brunei Darussalam established by the

Autoriti Monetari Brunei Darussalam Order, 2010;

“commission” means an amount or a benefit in kind, whether expressed as a percentage of contribution or not, agreed to be paid by a takaful operator to a takaful broker or takaful intermediary including introducer’s fees;

“company” means a company incorporated or registered under the Companies

Act (Chapter 39);

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“contribution” means takaful amount payable by a participant;

“contribution receipt book” includes any book or document held by the participant in which acknowledgments of receipts of contributions payable in respect of the certificate are entered;

“controller” shall be construed in accordance with Part II of the First Schedule;

“existing” means existing immediately before the commencement of this Order;

“family takaful” means takaful for financial aid and assistance to a participant and his family in case of his accidental death or disablement;

“financial year”, in relation to a registered takaful operator, means the period for which the registered takaful operator makes up the accounts of its business which shall be a period of one year calculated from the commencement of the business or from the end of the immediately preceding financial year, as the case may be, or such longer or shorter period as the Authority in relation to a particular registered takaful operator, may approve in a particular occasion;

“general takaful” means takaful for financial aid and assistance to a participant in case of loss or damage caused to his property, assets or body due to a casuality or disaster such as fire, flood, accident;

“Hukum Syara’” means the Laws of Islam according to the Syafeite, Hanafi,

Maliki or Hanbali sect of Ahlis Sunnah Waljamaah;

“Authority” means the Authority of Finance;

“net contributions income”, in relation to a financial year, means the contributions receivable under contracts of takaful or re-takaful after deducting

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any contributions payable for re-takaful arranged in respect of such contracts of takaful or re-takaful;

“parent undertaking” shall be construed in accordance with Part III of the First

Schedule;

“participant” includes, where a certificate has been assigned, the assignee for the time being and, where they are entitled as against the takaful operator to the benefit of the certificate, the personal representatives of a deceased participant;

“principal officer” means a person, by whatever designation so called, appointed by a takaful operator and charged with the responsibility of managing the affairs of that takaful operator;

“regulations” means regulations made under section 91(1);

“re-takaful” means an arrangement consistent with sound takaful principles for re-takaful of liabilities in respect of risks undertaken or to be undertaken by the takaful operator in the course of his carrying on takaful business;

“re-takaful’s deposit” means an amount deposited with or retained by the takaful operator by way of security for the performance by the re-takaful operator of re-takaful contracts in respect of liabilities undertaken by the takaful operator; and includes any similar amount retained by a branch of the takaful operator’s business in Brunei Darussalam against a branch outside Brunei Darussalam (the head office of a business being for this purpose treated as a branch);

“statutory balance-sheet” and “statutory valuation” means respectively a balance-sheet lodged with the Authority in order to comply with section 60(1), and a valuation of which results are shown in a valuation balance-sheet lodged with him on an actuarial investigation made in order to comply with section 61(1); any reference to the last statutory balance-sheet or to the last statutory

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valuation shall be construed as referring to that last one prepared or made and not superseded by the arrival of the date as at which another is to be prepared or made; any reference to there being shown in a statutory balance-sheet or on a statutory valuation a surplus of assets over liabilities of a takaful fund being construed accordingly by reference to the prescribed form of balance-sheet or valuation balance-sheet and to the rules to be followed under this Order and the regulations in preparing it;

“subsidiary undertaking” (and references to a subsidiary) shall be construed in accordance with Part III of the First Schedule;

“Syariah Financial Supervisory Board” means the Syariah Financial

Supervisory Board established by section 3 of the Syariah Financial Supervisory

Board Order, 2006 (S 5/06);

“takaful” means a scheme in accordance to Hukum Syara’ based on brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to the participants in case of need whereby the participants mutually agree to contribute for the purpose;

“takaful agent” means a person who does all or any of the following –

References in this Order to the date of commencement of this Order are to the date of commencement of the main substantive provisions of this Order.

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Classification of takaful business and construction of references to matters connected with takaful.