Section 32
Section 32
(1)
Subject to subsections (2) and (3), no takaful operator shall assume any risk in respect of any general takaful business unless –
(a)
the contribution payable is received by the takaful operator or is guaranteed to be paid by such person in such manner and within such time as may be prescribed; or
(b)
a deposit in advance has been made of such amount and in such manner as may be prescribed.
(2)
Where the contribution payable pursuant to subsection (1) is received by any person, including a takaful agent or takaful broker, on behalf of a takaful operator, such receipt shall be deemed to be receipt by the takaful operator for the purposes of that subsection, and the onus of proving that the contribution payable was received by a person, including a takaful agent or takaful broker, who was not authorised to receive such contribution shall lie on the takaful operator.
(3)
Subsections (l) and (2) shall apply to such description of general takaful business as may be prescribed.
(4)
Notwithstanding subsections (1) and (2), a takaful operator shall not grant credit to takaful agents or takaful brokers and participant in respect of motor vehicle takaful business.
(5)
Where any person, including a takaful agent or takaful broker receives on behalf of a takaful operator a contribution on a takaful certificate of a description prescribed pursuant to subsection (3), such person shall deposit with, or despatch by post to the takaful operator the contribution so received within such period as may be prescribed in relation to certificates of that description.
(6)
Any refund of contribution, in relation to certificates of takaful of a description prescribed under subsection (3), which may become due to a participant on account of the cancellation of a certificate or alteration in its terms and conditions or for any other reason, shall be paid by the takaful operator directly to the participant and a proper receipt shall be
Incorporating amendments until S 1/2016
(Clean Version) NANI/Amiriah/Fiqah/Karimah as of 8th July 2019
35
BLUV as at 14th January 2016
obtained by the takaful operator from the participant and such refund shall under no circumstances be paid or credited to any other person, including a takaful agent or takaful broker.
(7)
Any person who fails to comply with this section shall be guilty of an offence and liable on conviction to a fine not exceeding $50,000.
Appointment of actuary.