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Addendum

IA-BOD-RES 26/2014 Effective from 28/12/2014
  1. The Company shall maintain the following as a minimum for Policy Issuance, Underwriting and Policy Servicing records:

    a) Takaful application and proposal;

    b) Takaful policy;

    c) Wakala and Mudaraba fee details;

    d) Agreement on any terms of Re-Takaful cover;

    e) Re-Takaful contracts;

    f) The participants and beneficiary’s proof of identification;

    g) Underwriting policy and procedures;

    h) The technical basis of the Takaful policies and contribution ratios;

    i) List of insured personnel for group policies;

    j) Medical declaration for family and healthcare Takaful;

    k) Participants register;

    l) Re-Takaful registers for assumptions and cessions showing details of underwriting information by treaty, subscriptions, losses, commissions, etc., balances due to/from Re-Takaful operators, and supporting source documents; and

    m) Customer Complaints register.
     
  2. The Company shall maintain claim records pertaining to participants’ claims and classify them into paid, unpaid, and rejected claims. Each record shall include the following:

    a) Takaful application and proposal, if available;

    b) Copy of the Takaful policy and procedures;

    c) Claims policy and procedures;

    d) Participants’ claim information;

    e) Claims register;

    f) Adjusters and assessor’s report and any other documents pertaining to the claim and the direct reason leading to the covered loss;

    g) Proportional share of any other Takaful and re-Takaful policies in effect;

    h) Action taken by the Company and the status of the claim;

    i) A power-of-attorney from the participants to the Company to subrogate it in the following cases;
     
    1. 1) Third party liability for the loss; and

    2. 2) Defending the participants in disputed liability or in determining the indemnity amount.

    j) Signed settlement agreement by a person for a paid claim except in the cases of electronic medical claims where the signed settlement agreement is waived.
     
  3. The Company shall maintain the following records in relation to the calculations of Technical Provisions:

    a) The methods and assumptions used in establishing the Company's reserves, including the margins for adverse deviation, and the reasons for their use;

    b) The nature of, reasons for, and effect of, any change in approach, including the amount by which the change in approach increases or decreases its reserves;

    c) Stress testing and scenario analysis prepared as required;

    d) Reserve calculations performed for each period; and

    e) Claims developments within the preceding five (5) years to show the variances in building the technical provisions.
     
  4. The Company shall maintain records related to investment operations such as investment statements, summary of investment income from Takaful and other operations, details of derivatives and pledged assets, supporting documentation including securities registers (including information regarding securities held by the Company outside the UAE), Ijara register and Ijara documents.
     
  5. In support of the investment operations, the Company shall maintain the following records:

    a) Working papers, with properly referenced audit trails, to support the financial statements/ regulatory data required to be submitted to the Authority;

    b) Bank statements, cheque registers, monthly banks reconciliations, vouchers and receipts pertaining to the operations in the UAE, and adequate documentation to confirm that amounts due in respect of the Takaful operations of the Company flow to the bank accounts in the UAE;

    c) Records supporting amounts due to or from the head office and affiliated entities (if any);

    d) Policy movement reports and reserve amounts;

    e) Contribution registers detailing contributions written, earned, and unearned;

    f) Listing of policy loans, amounts on deposit by policy, related income or expense, and originals or copies of policy loan applications;

    g) A description of the accounting system;

    h) All agreements, including outsourcing agreements with third party and affiliates;

    i) All signed contracts, which are material to the Company, that relate to the administrative operation of the Company;

    j) Policies and practices governing the Company’s operations in the UAE;

    k) Risk management policies and procedures;

    l) Details of Board of Directors minutes and other committee minutes;

    m) Details of any current litigation matters; and

    n) Actuarial reports, including valuation reports, external review reports, experience studies, etc., and supporting documentation.