Selected Resolutions of the Shariah Committee of Prudential BSN Takaful Berhad

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Pages: 105
Year: 2021


Preface

This compilation of PruBSN’s Shari’ah Resolutions was initially prepared as an essential guide to PruBSN’s staff. It consists of some selected significant general resolutions which were deliberated and resolved by the Shariah Committee (SC) of PruBSN in its meetings from 2015 until 2019. The resolutions have been taken from discussions that transpired in the SC meetings.

As part of the Shari’ah Secretariat’s role, each of the Shari’ah resolutions once issued shall be immediately disseminated to the relevant parties, particularly the originator, the affected business unit, and the Management. Between the years 2015 and 2019, the numbers of resolution issued by the Shari’ah Committee are as follows:

  1. In 2015, 119 resolutions were issued, of which 35 were marked as key resolutions.

  2. In 2016, 127 resolutions were issued, of which 48 were marked as key resolutions.

  3. In 2017, 150 resolutions were issued, of which 54 were marked as key resolutions.

  4. In 2018, 164 resolutions were issued, of which 77 were marked as key resolutions.

  5. In 2019, 148 resolutions were issued, of which 64 were marked as key resolutions.

Out of the 278 key resolutions issued, we have selected 28 issues of a general nature that do not involve technicalities of PruBSN’s products and offerings in order to ensure that readers from various backgrounds are able to understand the context.

It is hoped that this publication will serve as a good reference for the public to understand some pertinent Shari’ah issues related to the takaful business. We hope to demonstrate an increased level of transparency on juristic reasoning in the implementation of Shari’ah governance, which would lead to an increased appreciation and acceptance of Shari’ah decisions.

Shari’ah rulings are produced based on the analysis of the issues presented to the SC. They are guided by the teachings and principles stipulated in the primary sources—i.e., the Qurʾān and Sunnah—and secondary sources which are ijtihādi in nature. In addition, the rulings rely on the Islamic legal maxims and consider the ultimate objectives of the Shari’ah (maqāṣid al-Shari’ah).

This compilation is divided into six sections, namely:

Section 1: **Product Offerings and Management of the **Tabarruʿ Fund. The selected resolutions relate to the formation of the Product Model. It also covers PruBSN’s role in managing the tabarru’ fund in accordance with the wakalah bi al-ujrah contract.

Section 2: Business Activities. The selected resolutions relate to day-to-day business implementation other than product development and direct management of the takaful funds. PruBSN is required to be Shari’ah compliant in its end-to-end business implementation, and this covers all initiatives, events and campaigns.

Section 3: Financial Procedures/Processes and Systems Implementation. The selected resolutions focus on matters relating to financial procedures in the implementation of takaful business operations. Financial processes involve automation and system implementation.

Section 4: Dealings with the Group and Third Parties. The selected resolutions relate to dealings and arrangements that PruBSN has established with other entities within the Prudential group in order to maintain the highest level of efficiency in the most cost-efficient manner. In doing so, it is important to put in place controls that will ensure continuous Shari’ah compliance. Early consultation with the SC has been carried out to deliberate upon the arrangements and put in place suitable controls.

Section 5: Takaful Distributions and Management of Takaful Representatives. The selected resolutions relate to takaful product marketing, which typically involves distribution arrangements with partners and agents. Matters concerning distribution arrangements such as the Agency Financing Scheme were presented to the SC to ensure that the model and the contract terms are Shari’ah compliant.

Section 6: Others. The resolutions included in this section consist of those not covered under the main headings above.


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