How it begin
The Takaful industry in Malaysia started to gain momentum when, in October 1982, the Malaysian government formed a special task force to explore the viability of setting up an Islamic insurance company. Out of that study and based on its recommendations, the Takaful Act 1984 was gazetted and came into force thereafter. At first glance, there does not appear to be much difference between conventional insurance and Takaful. Indeed, in terms of concept, there is none as both subscribes to the long established principle the “pool of the many to help the unfortunate few”. MTA is dedicated in promoting the interest of its members and to supervise the exercise of self-regulation within the Takaful industry. The MTA Road Map introduced in 2006 set the direction and focus of the association. A four-pronged strategy was laid out with the objective of achieving a 20% share in the overall insurance industry by 2010. The focus, among others, is on branding, awareness and communication, shared services through leveraging of technology, investment opportunities and relations with regulators. These strategies are deemed achievable and close co-operation among members to make it work was the key to its success.
Inter-Takaful Operator Agreement (ITA)
The ITA was officially signed on 22nd May 2008 among all Takaful operators. The ITA essentially sets a common standard among all operators to regulate on and control matters related to pre-contract examination for agents, agency registration system and code of ethics, and compliance of the general Takaful tariff for motor and fire businesses. The implementation of the ITA was with the objective to make the industry stronger in terms of streamlining market practices among operators as well as harmonizing the Takaful and conventional insurance industry.