Strategic Alliance

The Way Forward

Table of Content
CONTENT

PAGE

EXECUTIVE SUMMARY

INTRODUCTION

PRODUCT

34

PRICING

COMMISION

TRAINING

SERVICING BY COMMERCE TAKAFUL

MANAGEMENT MEETING

CONCLUSION

APPENDICES
- MRTT Product Features

Appendix 1

- Houseowner Takaful

Appendix 2

- Motor Takaful- CIG Call Center

Appendix 3

- Commerce Group Networks

Appendix 4

-0
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

Executive Summary
This proposal suggest partnership program between STANDARD
CHARTERED BANK BERHADand Commerce Takaful in providing takaful
products and services under Bancassurance business initiative.
Commerce Takaful is in the group of second largest financial institution
in Malaysia has the resources and readiness to provide products,
competitive takaful contribution rates and services required by
STANDARD CHARTERED BANK BERHADto complement its Islamic
financing products.
The purpose of this paper is to propose ways on which a partnership
program may be set up for mutual benefit. The paper covers the area of
various business distribution channels, products, staff and product
training.

-1
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

Introduction

Commerce Takaful is able to provide competitive product,

competitive takaful rate (premium rate) and services required by
AFFIN ISLAMIC BANK.

This reasonable rating will make the STANDARD CHARTERED

BANK BERHAD financing package more competitive in the market
place

There is huge untapped market for takaful products evidence by

small marginal takeup rate of takaful or insurance among the
muslim market.

There is an opportunity for STANDARD CHARTERED BANK

BERHADto expand its fee-based income to a greater scale.

Embracing advanced technology in administration and services

together with excellent customer services, the company is well
poised to achieve exceptional growth in the next five years and
beyond.

Straight through processing and paperless transaction is our

aspiration towards providing excellent services to our Banca
Partner as well as our valuable end customers.

It is noted that there has been acceleration towards providing full

financial service by STANDARD CHARTERED BANK BERHAD
could offer across a broader range of financial services which
includes takaful via independent risk carriers. Commerce Takaful
-2
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

is merely complementing STANDARD CHARTERED BANK BERHAD

as a one stop financial center.

-3
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

Enhances the STANDARD CHARTERED BANK BERHAD image as

a dynamic and customer focused financial institution by providing
comprehensive financial needs of customer. Hence, maximizing
cross selling opportunities from the bank huge customer base and
enhance customer loyalty by minimizing the migration of
customers to competitors.

The relationship would generate greater opportunity in

strengthening customer relationship by offering wider range of
financial products.

Product

Financing Related Products

Financing given to borrowers, apart from the normal required security
it would be also beneficial to get additional protection in the case of
death, permanent disability or even critical illnesses to borrower. In
this situation STANDARD CHARTERED BANK BERHADwould be able
to recover it financing from takaful operator.
The related products namely:1. Mortgage reducing term takaful (MRTT / MRTA)
This is to cover house financing
Please refer to Appendix 1 for product features
2. Group Credit Takaful (GCT/DTA)
To cover personal financing facilities
Please refer to Appendix 2 for product features
3. HouseOwner Takaful

-4
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

Please refer to Appendix 3 for product features

4. Equipment all risk

This is to cover equipment finance by STANDARD
CHARTERED BANK BERHAD under business banking
financing.

-5
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

5. Marine Takaful
On-line transaction for immediate coverage.
Cover Note could be issue at bank branches / trade centers
The products can be packaged together with bank product of which
the takaful contribution can be priced together with the financing or
the bank may extend financing for the takaful contribution.

Stand Alone Product

Commerce Takaful would suggest some of takaful product which is
modeled on simple underwriting and simple acceptance procedure.
The product would be of low cost and affordable by general public.
The products namely:-

1. Personal Accident
Customer to pay via Credit Card on monthly basis as low as
RM20 per month.
2. Auto PA
One off payment from RM50 per year for entire family in the
event of accident whilst driving the registered vehicle.

Exclusive Product
It is also possible to jointly develop takaful product to meet
STANDARD CHARTERED BANK BERHAD specific need. The
developed takaful product along bank product to enhance it features
to be more appealing to customers. STANDARD CHARTERED BANK
BERHAD may have it own branding for the product.

-6
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

Pricing
Commerce Takaful rating for takaful contribution is competitive within
the industry norm and practices. The detail rates or pricing for each
product will be subject to information available.
As for MRTT, our female rating is the lowest in the industry as at to date.
This will attract low & competitive package when it is package with
STANDARD CHARTERED BANK BERHAD housing loan.

-7
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

Commission to Bank
Commissions offered to bank are the standard level of commission
practiced in the industry.
Family Takaful Products
Item

Products

Commission

Mortgage Reducing term Takaful

10%

Group Credit term Takaful

10%

Individual Family Takaful

TBA

General Takaful Products

Item

Products

Commission

Houseowner/Householder Takaful

15%

Fire Takaful

15%

Motor Takaful

10%

Personal Accident Takaful

25%

All Risks Takaful

25%

Money Takaful

25%

Fidelity Guarantee Takaful

25%

Marine Cargo Takaful

25%

Burglary Takaful

25%

10

Public Liability Takaful

25%

11

Foreign Workers Takaful

10%

12

Workmen Compensation Takaful

25%

13

Contractors All Risks Takaful

15%

-8
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

14

Equipments All Risks Takaful

15%

Training
Training is a critical part of overall business performance. Commerce
Takaful will undertake to train and develop a range of knowledge and
skills to STANDARD CHARTERED BANK BERHAD financial executives
and staff.

Area and Scope of Training

o
o
o
o

Product knowledge
Rating
Motivation
Selling techniques

Structured Training Program

Commerce Takaful is committed to support the development of the
Financial Executives and bank employees. In view of this,
Commerce Takaful would implement a structured training program
to develop the bank employees along their new career path.

Support Employees
Bank employees who is directly involved in processing of
customers takaful needs will be provided with training on
product knowledge, operational matters and claim
management.

Financial Executives

-9
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

Financial executives as frontliners will be train on product

knowledge, rating, motivation, selling techniques as well
claim.

Servicing by Commerce Takaful

Klang Valley
Bank Headoffice and branches within the Klang Valley will be
serviced by team of Commerce Takaful executives from
Commerce Takaful head office. The executives will make
scheduled visits to bank branches or if required would also be
available anytime to attend to banks need.

Service Network
The other bank branches would be serviced by executives from
20 Commerce Group branches nationwide. List of Commerce
International Group Branches is available in Appendix 4.

Management Meeting
- 10
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

It is propose that Commerce Takaful and STANDARD CHARTERED

BANK BERHAD Management to meet and to see through on
implementation also to review overall business matter on quarterly
basis.

- 11
COMMERCE TAKAFUL BERHAD

Strategic Alliance
The Way Forward

Conclusion
The financial business environment is fast changing. The bigger players
are getting bigger and stronger through merger and acquisition.
Every player would like to delight and lock its customers and at the same
time win away competitors customers in the name of business
expansion.
Therefore, STANDARD CHARTERED BANK BERHAD and Commerce
Takaful could leverage on each other capabilities at the same time
focusing and improving on their own core competencies.

- 12
COMMERCE TAKAFUL BERHAD