What is the difference between contribution and Tabarru` deduction?

Why are my contribution and / or Tabarru` deduction being revised?

The basic principle of Takaful is for mutual assistance where all participants pool their contributions in the Tabarru` Fund for the payout of claimable events, including the payout of medical claims.

The contribution and / or Tabarru` deduction for my medical plan were just revised last year. Why is it revised again this year?

Every year, we review our medical portfolio claims experience as part of our role in managing the Tabarru` Fund. Increase in medical cost and usage of medical plans, have been found to be amongst the top reasons for the increase in claims experience. This annual review is necessary to make sure that the Tabarru` Fund continues to be sustainable to keep paying for your medical needs.

Why am I required to pay the additional contribution / recommended top-up?

The additional contribution / top-up is required to cover the increased Tabarru` deduction of your medical plan(s). With the increase in Tabarru` deduction, more units / higher amount will be deducted from your certificate’s account values. You are advised to pay the additional contribution / top-up to enjoy continuous medical coverage.

I have not made any claims. Why are my contribution and / or Tabarru` deduction being revised?

Takaful is based on the concept of mutual assistance among the participants. Tabarru` deduction are pooled in the Tabarru` Fund to pay for future claims. Revision on the Tabarru` deduction is required to ensure sustainability of the Tabarru` Fund to allow for the increase in health care costs, which will be shared among the participants of the Tabarru` Fund and will be applied on all certificates with the similar medical plans regardless of individual claims history.

Aren’t the contribution and Tabarru` deduction for my medical plans guaranteed?

The contribution and Tabarru` of our medical plans are not guaranteed, as stated in our product materials, product illustrations, and certificate documents. We may revise the contribution and the Tabarru` deduction provided that prior notice is given to the participants (according to the notice period stated in the certificate document).

Is the rate of increase in contribution and Tabarru` deduction fixed across all certificates?

The rate of increase in contribution and Tabarru` deduction is not fixed across all certificates as it varies depending on existing certificate`s terms, type of medical plan, person’s covered age, gender, nature of occupation, etc.

Is there any change to my benefits coverage after the Medical Revision?

Other than the rates revision, the coverage of any Contributor rider attached to the certificate will be increased accordingly, to cater for the increase in the contribution. All other certificate’s coverage and benefits will remain unchanged.

Will there be an increase in my certificate account value since I am paying more contribution?

The impact on the certificate’s account value should be minimal because the additional contribution will be utilised to cover for the increased Tabarru` deduction.

How will the additional coverage for “any communicable diseases requiring quarantine by law” which I had previously accepted impact the revision of my contribution and Tabarru` deduction?

As communicated during your acceptance to remove the exclusion clause, we will take the additional coverage into account when we carry out the review of the contribution rates and Tabarru` deduction amount. Effective 1 January 2025, a separate Tabarru` deduction will be charged between the certificates with and without the additional coverage to ensure fairness for all participants of the Tabarru` Fund.

Is this medical revision driven by regulatory requirement?

The medical revision is governed under a structured and objective approach to ensure the continued sustainability of the Tabarru` Fund such that customers continue to be covered during their time of need. This is a commercial decision endorsed by PruBSN after taking into consideration the current claims experience and the expected rise in future medical costs.

What are the options available to me besides increasing my contribution?

You may review your medical plan to better align it with your financial feasibility. Listed below are some of the options you may wish to consider

If my existing medical R&B plan is Plan 200, can I revise my plan to pay for lower contribution?

Yes, you may revise your current Plan 200 to a lower R&B plan (if available), to suit your protection and financial needs.

If my existing medical plan is already with the lowest R&B plan (for example Plan 100 or Plan 150, depending on the medical plan), what options are available to me?

If your current medical plan is with Full Coverage or Zero Deductible, you may consider revising your medical plan to other co-payment options such as Co-Takaful, SmartSaver or Deductible plan (if applicable).

I have participated in several Takaful plans, why did I receive my notification letters on different dates?

The revision of contribution and / or Tabarru` deduction takes effect from the certificate anniversary date. The notification letter is provided at least thirty (30) / ninety (90) days before the certificate anniversary date, depending on the medical plan.

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