The purpose of this research is studying the variations in Malaysia’s takāful operators’ practices in exercising remedies for misrepresentations in takāful contracts, this research will give sharīʿah reasons for the disclosure and representation requirements.
Data was acquired via conversations with representatives of each of the seven Malaysian takaful operators as well as other sources. The treatment from Malaysia’s regulatory authority, BNM, as well as the misrepresentations’ categories according to IFSA 2013 were severely analyzed.
This study finds that there are not many deviations or noncompliances in the Malaysian takāful market and that the regulatory body has to publish a statement on the topic of unearned wakelah fees in situations of misrepresentations.
Topic of nondisclosure or misrepresentation under Malaysian law has not yet been the subject of recorded case law that has been resolved by the courts. This is one of the reasons why the concept of misrepresentation may become ambiguous and only be understood or derived from the term in the act, especially IFSA 2013, or the definition in the dictionary. These issues can be well addressed through this research.
