BIMB Integrated Annual Report 2019

49 TAKAFUL RISK MANAGEMENT (CONTINUED) (b) General Takaful Fund The General Takaful contracts consist of fire, motor, personal accident, workmen’s compensation and employers’ liability, 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 RM’000 RM’000 RM’000 2019 Fire 262,515 (108,464) 154,051 Motor 331,686 (134,926) 196,760 Marine 7,833 (6,771) 1,062 Miscellaneous 121,533 (40,204) 81,329 Gross contribution 723,567 (290,365) 433,202 2018 Fire 231,829 (92,118) 139,711 Motor 349,507 (118,339) 231,168 Marine 19,102 (15,761) 3,341 Miscellaneous 108,848 (41,746) 67,102 Gross contribution 709,286 (267,964) 441,322 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 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, policy conditions and claims handling procedures. Other key circumstances affecting the reliability of assumptions include delays in settlement and changes in foreign currency rates. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 305 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary