Market Value

Settlement by Case Manager

 

MARKET VALUE – Agent’s mistake in registering the make and model of the takaful product. 

 

 

Background

 

Ms Wee Lian’s car was stolen, and she filed a claim with her Takaful Operator for the loss. Her claim was processed immediately and RM35,800 was approved being the market value of her car at the material time of loss. Wee Lian was not happy with the offer and contacted us as she felt the Takaful Operator’s offer was low.

 

 

Investigation and Key Findings

 

We perused the Takaful Certificate Schedule and it was stated that Wee Lian's vehicle was covered at RM54,000.00. We discovered that information recorded on the type of body, vehicle make and model of Wee Lian’s car was a Volkswagen Golf, while the Vehicle Registration Card showed that her car was registered as Volkswagen Jetta 1.4A TSI. Based on the loss adjusters report, a Volkswagen Jetta 1.4 (A)TSI 2012 model is valued between RM26,999.00 to RM35,800.00 at the material time of loss.

 

We requested the Takaful Operator to investigate on the discrepancy. The loss adjusters appointed by the Takaful Operator confirmed that the vehicle make and model in Wee Lian’s police report, the theft claim form, the JPJ document and the Hire purchase agreement was consistently stated as Volkswagen Jetta 2012(A) 1.40 TSI.  It was further supported with the photographs of the vehicle prior to the theft submitted by Wee Lian.

 

On the above discrepancy, the loss adjuster was certain that:

“The discrepancy on the Takaful Certificate Schedule on the make and model as a Volkswagen Golf 2012 model instead of the actual make and model: a Volkswagen Jetta 2012(A) 1.40 TSI was due to a ‘clerical error’ made by the Takaful Agent at the time the policy was typed out.”

 

Settlement

 

Based on the loss adjuster’s finding, we told the Takaful Operator that Wee Lian should not be penalised by the agent’s omission and/or negligence. We highlighted to the Takaful Operator Section 141, Schedule 9, Part 2 (12) of the Islamic Financial Services Act 2013 which provides that the conduct/negligence of the takaful agent is imputed to the takaful operator.

 

The Takaful Operator accepted our views and revised their offer to RM41,687.94 based on the Wee Lian’s car loan outstanding balance with the hire purchase company.