NATIONAL INSURANCE ASSOCIATION OF MALAYSIA

TANI MALAYSIA SCHEME CONSORTIUM MEMBERS AGREEMENT
EXECUTIVE SUMMARY


Contracting Parties
  • Tani Management (Malaysia) Sdn Bhd, a subsidiary of NIAM.
  • Interested members of NIAM (i.e. Consortium Members).
  • Malaysian Re as Pool Manager.
Liabilities
  • Policy issuing company (i.e eligible Consortium Members) liable 100% to policy holders.
  • Independent liabilities of Consortium Members.
Risk subscription
  • Units pledged are applicable to Livestock only.
  • Fresh mandate required for other segments such as crop and aquaculture.
Supervision of Scheme
  • By Standing Committees appointed by Consortium Members. There will be one representative from NIAM EXCO, one (1) from Tani Management and five (5) from Consortium Members out of which one (1) would represent Takaful Operator.

Enrolment and Withdrawal
  • Each NIAM member can enroll or withdraw from Tani Malaysia Scheme. The enrolment or withdrawal shall follow each Underwriting Year.
Underwriting and Claims Standard
  • Tani Management to set Underwriting Guidelines, provide advisory services to Consortium members, assist in claims review.
Infrastructure
  • Issuing company will issue an insurance policy using existing company infrastructure with minimal customization. The risk will be reinsured by Pool Manager representing Consortium Members who are member of Tani Pool and Takaful Operator who are Consortium Member in portion to their participation. Likewise policies issued by Takaful Operators, Takaful Operator will retain its nett participation and cede the balance to Pool Manager in portion to their participation. In the event, the Consortium Members' nett capacity is exhausted, Pool Manager shall arrange appropriate reinsurance to take up the shortfall. The reinsurance cession to Pool Manager shall be done via CAB.

    Pool Manager, will render quarterly account to members of the pool together with premium settlement/claim recovery.
Adjuster
  • Adjusters are expected to compliment Tani Management in claims investigation and assessment.
Reinsurance
  • Pool Manager in consultation with Standing Committee will arrange appropriate reinsurance to address any shortfall in capacity. The Pool Members shall each be responsible for the failure of any reinsurance security in proportion to their participation.
Marketing & Promotion
  • Tani Management will promote and market the Tani Malaysia Scheme on behalf of the Consortium members.