AKIJ TAKAFUL

The Contract, its Provisions And Limitations of Takaful Policy

This Policy and the Proposal for it, a copy of which is attached hereto and made a part hereof, together with any Supplementary Contracts applied for which are attached hereto and stated to be a part hereof, constitute the entire contract. All statements made in applying for the Contract will be deemed, in the absence of fraud, representations and not warranties. No statement will be used to invalidate the Contract nor to defend against a claim under it unless contained in the written application.

Consideration

This Contract is issued on the basis of the declarations made in the Proposal, a copy of which is attached to the Policy, and in consideration of the payment in advance applicable to this Contract stated in the Policy Specification Schedule. Concealment of facts or false statement by the Insured, which affect the acceptance of the risk by the Company, shall invalidate this policy from its inception.

Modifications

Only the Chairman of the Board/CEO of the Company can make or modify this contract, extend the time for payment of any premium, or waive any of the Company's rights or requirements at any time in any manner whatsoever.

Benefits

Claims are only payable by the Company upon delivery of this Policy together with satisfactory proof of (a) the happening of the Assured Event as stated in the Policy Specification Schedule (b) the age of Insured and (c) the title of the Claimant.

Participation in Surplus

It is an amount which gets accumulated under the policy on a yearly basis and it is payable on the death of the life assured, surrender or at maturity of the plan, whichever occurs earlier. This bonus amount is payable over & above the benefits applicable under a life insurance policy. Only participating (with-profit) policies qualify for the bonus. The bonuses are per thousand of the sum assured and these are declared at the end of every financial year. When declared, it becomes guaranteed. The insurance company has the discretion to decide the rates of bonus. The policyholder receives 90% of the surplus as bonus and the remaining 10% of the surplus is kept for shareholders. The Company may declare two types of bonuses and their features of the bonuses are provided below:

Change in Plan

This Policy may be changed to another plan of insurance with the approval of the Company, subject to requirements of the scheduled plans and upon payment of such cost, if any, as the Company shall determine.

Incontestability

This Policy, but not any part thereof granting Disability or Accident Benefits, shall be incontestable after it has been in force, during the lifetime of the Insured, for two (02) years from its Issue Date, except for fraudulent, willful misrepresentation/concealment of material facts or non-payment of Premium(s).

In the event the Owner elects to increase the Basic Sum Assured or to reinstate this Policy, the increase and/or Reinstatement shall be incontestable, under this Policy after it has been in force, during the lifetime of the Insured, for two (2) consecutive years from the effective date of the increase or the Reinstatement except for fraud, willful misrepresentation or non-payment of Premium(s).

Suicide

If the Insured commits suicide, while sane or insane, within two years from the Date of Issue or from the date of any reinstatement of the Policy, the insurance under this contract shall be a sum equal to the premiums paid and no more.

Age

If the age of the Insured has been understated, any amount payable under this Policy shall be reduced to equal the amount as the premium paid would have purchased at the correct age. If the age has been overstated, the excess of the amount of premium paid over the premium at the correct age will be refunded without profit and there will be no change in the amount payable under the Policy. If it has been proved later on that the age of the Insured at the Commencement Date is higher than the maximum entry age at which the Company writes the Contract, then the Policy will be void from its inception.

Ownership and Rights Under This Policy

Subject to any statutory restrictions, all rights, privileges and options provided under this contract not specifically granted to any other person shall be reserved to the Owner alone and shall pass to the Beneficiary/Nominee only upon the death of the insured during the continuance of this Contract unless otherwise provided herein.

Changes in Ownership and Beneficiary/Nominee

At any time during the continuance of this Contract by filling written notice satisfactory to the Company:

(a) The Owner may transfer his entire ownership to take effect during his lifetime and

(b) Unless otherwise provided herein the Beneficiary/Nominee may be changed with or without reserving the future right to change the Beneficiary/Nominee insofar as the laws governing this Policy allow.

No such transfer or change will take effect unless recorded by the Company, but when so recorded shall become effective as of the date the notice was signed, subject to any payment made or other action taken by the Company before such recording.

Rights in Event of Death of Owner OR Beneficiary/Nominee

If the Owner is not the Insured, in the event of death of the Owner during the continuance of this contract shall pass to the Insured unless otherwise provided herein. The rights of a Beneficiary/Nominee whose death occurs prior to the expiration of a period of fifteen days commencing with the death of the Insured shall pass to the Owner, unless payment has been made to such Beneficiary/Nominee or unless otherwise provided herein.

Assignment

No assignment of this Policy or of any interest therein, shall be binding on the Company unless recorded by the Company. Any assignment shall be subject to any payment made or other action taken by the Company before the assignment is received and recorded by the Company. The Company assumes no responsibility for the validity, effect or sufficiency of any assignment.

Surrender Value

A policy of life insurance, if in force, shall acquire Surrender Value, after all premiums have been paid for at least two consecutive years. The factor schedule of Cash Surrender Value is attached here in after and this Value shall not be less than the minimum guaranteed Surrender Value prescribed by insurance law of Bangladesh.

Policy Loans (Quard-e-Hasana)

The Company will lend on the sole security and proper assignment of this Policy during its continuance, an amount not exceeding than current Loan (Quard-e-Hasana) Value. The Loan Value of this Policy is 90% of the amount which with profit, to the end of the Policy year, will equal Net Cash Surrender Value. If the loan (Quard-e-Hasana) unpaid, this contract will be treated as void. Late payment of loan (Quard-e-Hasana) and others operations related to loan (Quard-e-Hasana) will be operated according to the decision of Shariah Board.

Receipts For Premiums

No receipt shall be valid unless it is on an official printed form bearing the signature of an authorized Officer of the Company.

Payment of Premiums and Grace Period

All premiums are payable in advance either annually, or by some other method with the consent of the Company. A Grace Period of 30 days from its due date will be allowed for payment of each premium after the first, during which period the Policy will remain in force. If death occurs within the Grace Period any premium then due and unpaid will be deducted in settlement of this Policy.

Lapse

If, at the expiration of the Grace Period, the premium remains unpaid and the Policy has not yet acquired a Basic Cash Value, the Policy shall lapse and have no further value.

Revival of Lapse Policies

If a policy, before acquiring a surrender value, lapses due to nonpayment of premium within grace period, it can be revived within five years on payment of all arrears of premium together with late fee as approved by the Shariah Board. On proof being given at the cost of the insured to the satisfaction of the Company of the good health and continued eligibility of the life for insurance.

Special Revival Scheme

If a policy is discontinued before acquiring the surrender value and the Life Assured or Policy Owner (where applicable) is unable to pay the arrear of premiums together with profit, subject to satisfactory evidence of insurability being furnished to the Company at the policyholder's cost, the policy may be revived by advancing the commencement/maturity dates of the policy and by charging the required special revival fee and premiums for enhanced age of the insured. This benefit is available only once during the whole policy term.

Automatic Non-Forfeiture Provision

If, at expiration of the Grace Period, the premium remains unpaid and no non-forfeiture provision has been elected and the Policy has acquired a Basic Cash Surrender Value, the Policy will automatically continue in force as follows:

(a) If the Loan Value is equal to or greater than the unpaid premium the Company will advance the premium due as an Automatic Premium Loan.

(b) If the Loan Value is insufficient to cover any premium in default the Policy shall be continued in force for such proportion of the period covered the premium due as the Loan Value bears to the premium.

1.21.1 When the Owner to which this section applies fails to pay a premium due under that policy, the Company shall, before the expiry of 3 (three) months from the date on which that premium was payable but not paid, give notice to the Owner informing the responsibility of the Owner and the premium required to be paid.

1.21.2 Elective Non-Forfeiture Provision:

Termination

This Policy will immediately and automatically terminate on the earliest of:

a) Occurrence of the death of the Insured and upon payment or repudiation of a claim;

b) On the payment of the Surrender Value, if any;

c) On the expiry of the Revival Period, if the lapsed Policy is not revived;

d) On the Maturity Date

Reinstatement

Unless this Policy has been cash surrendered, it may be reinstated at any time within five years after default in payment of premium upon written application to the Company with the production of evidence of insurability, including good health, satisfactory to the Company, including other factors such as income and personal habits must not have changed greatly, together with payment of all overdue premiums and repayment or reinstatement of any loan (Quard-e-Hasana), both with Profit to the date of reinstatement at a rate of Profit determined by the Company, compounded annually.

Loss of The Policy

The policy document shall be required by the Company before making any payment. In case of loss or destruction of this Policy Document, please write to the Company. After Completion of relevant statutory affidavit, indemnity bond and legal formalities, the company will issue the alternative new policy document with proper stamp at the cost of the insured customer.

Travel, Residence and Occupation

The policyholder is free from all restrictions as to travel, residence and occupation as permitted by law.

Territorial Limits & Currency

All premium, taxes, levies and benefits are payable only within Bangladesh and in Bangladesh Taka.

Mailing Address

All statements, advices and other written communications to the Policy holder's in connection with this Policy will be mailed to the Policy holder's address as indicated on the Proposal Form. The Policy holder's shall be responsible for advising the Company promptly of any changes of the address.

Notices By The Policy holder under The Policy

The Policy Holder shall notify the Company in writing at its Registered Office in Bangladesh of any change in Beneficiary designation, exercise of any right or option or any notice under any clause of this Policy whatsoever relating to this Policy.

Notice of Claim

Written notice of Claim must be given to the Company within thirty (30) days after the occurrence or commencement of any loss covered by this policy. Written notice of claim given by on behalf of the Insured to the Company at its office specified on the face of the Policy or to any authorized official of the Company with information sufficient to identify the Insured shall be deemed as notice to the Company.

Claim Forms

The Company, upon receipt of a notice of claim, will furnish to the claimant such forms as are usually required by the Company for filling proof of loss.

Proof of Loss

Affirmative proof of loss in such forms as the Company shall prescribe must be furnished to the Company at the Owner's /Beneficiary's expense within thirty (30) days after the date of such loss.

Payment of Claims

Indemnity for the loss of life of the Insured is payable to the Beneficiary (ies) named in Proposal Form provided such Beneficiary (ies) survive(s) by thirty (30) days, otherwise to the estate of the Insured. All other indemnities under this Policy are payable to the Insured. Any payment made by the Company in good faith pursuant to this provision shall fully discharge the Company to the extent of the payment.

Physical Examination

The Company at its own expense shall have the right and opportunity to examine the Insured when and as often as the Company may reasonably require during the pendency of a claim hereunder, and also the right and opportunity to make an autopsy in case of death where it is not forbidden by law.

Legal Action

No action at law or in equity shall be brought to recover on this Policy after the expiration of three (3) years after the occurrence of the assured event.

Beneficiary

This Beneficiary is as stated in the Proposal Form, unless later changed. The Beneficiary is entitled to the Death Benefit of this Policy. One or more Beneficiaries for the Death Benefit may be named in the Proposal Form.

Taxation

The Company will deduct any applicable taxes, cess or levies (including service tax), as may be in force from time to time by the Government from any amounts payable by the Company to the Owner. The Company does not offer any tax advice or consultancy and the Owner is advised to seek the opinion from the tax advisor in relation to the applicable tax benefits and liabilities. The Company does not hold any responsibility for the Owner and/or Nominee's claim to any deduction/s under the applicable tax laws in respect of the amount contributed or accrued/received.

Governing Law and Dispute Resolution

This Policy shall be governed by Bangladesh laws. Any disputes or differences arising out of or in relation to this Policy shall be settled, up to a small amount as fixed by rules, may at the option of the claimant, be referred to the Insurance Development and Regulatory Authority (IDRA) for settlement and the Authority may after hearing the parties and taking such evidence as it may in its absolute discretion, consider necessary, settle the dispute.

Operation and Profit Allocation

Operation and Profit allocation will be borne under the guidance of the Company's Shariah Board.