Page 327 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS in retrospect

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for the financial year ended 31 december 2020 (continUed)
the Will to Suceed

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50 TAkAFUL RISk MANAGEMENT (CONTINUED)
(b) General Takaful Fund
the General takaful contracts consist of fire, motor, personal accident, workmen’s compensation and employers’ liability, achieving a leading repute
liabilities and engineering and others.
Concentration of General Takaful risk |
the table below sets out the concentration of General takaful gross contribution by type of business.
Group
Gross Retakaful Net Paving the Way for a Sustainable future
RM’000 RM’000 RM’000
2020
fire 266,276 (109,392) 156,884
motor 418,229 (182,216) 236,013
marine 5,761 (2,338) 3,423
miscellaneous 137,672 (48,517) 89,155
321
Gross contribution 827,938 (342,463) 485,475

2019
fire 262,515 (108,464) 154,051
motor 331,686 (134,926) 196,760
marine 7,833 (6,771) 1,062 adhering to the best Governance Practices
miscellaneous 121,533 (40,204) 81,329

Gross contribution 723,567 (290,365) 433,202

Key assumptions |
the provision for takaful liabilities is in accordance with the valuation methods set out by bnm in respect of the
Guidelines on valuation basis for liabilities of General takaful business (bnm/rh/Gl 004-21) and risk-based capital
framework for takaful operator. the key assumptions underlying the estimation of liabilities is that the takaful malaysia
Group’s future claims development will follow a similar pattern to past claims development experience, including Laying the Foundation for Financial Growth
average claim cost, average claim frequency and business mix for each accident year.

additional qualitative judgements are used to assess the extent to which past trends may not apply in the future,
for example, isolated occurrences, changes in market factors such as public attitude to claiming, economic conditions,
as well as internal factors such as portfolio mix, underwriting policy, certificate conditions and claims handling procedures.
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additional information & disclosure Summary
other key circumstances affecting the reliability of assumptions include delays in settlement and changes in foreign
currency rates.

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24 th aGm information