RETAKAFUL AGREEMENT

For
Askari Life Group Family Takaful
(hereinafter referred to as the “Agreement”)

between

Askari Life Assurance Company Limited

Window Takaful Operations

(hereinafter referred to as the “Takaful Operator”)

of the one part

and

Hannover ReTakaful Bahrain B.S.C (c)

(hereinafter referred to as the “Retakaful Operator”)

of the other part.

(hereinafter referred to each as a “Party” and together hereinafter referred to as the “Parties”)
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GENERAL CONDITIONS

Article 1
1.1 Basic Agreement 5
1.2 Commencement and Duration 5
1.3 Scope 5
1.4 Mode of Retakaful 5
1.5 Notification of Major Changes 5
1.6 Alterations to the Agreement 6
1.7 Jurisdiction 6
1.8 Utmost Good Faith 6

Article 2
2.1 Retakaful Operational Clause 7

Article 3
3.1 Sum at Risk 9
3.2 Sum at Risk Ceded 9

Article 4
4.1 Retention Limits of the Takaful Operator 10
4.2 Change in Retention Limits 10
4.3 Minimum Sum at Risk Ceded 10

Article 5
5.1 Participation of the Retakaful Operator 11
5.2 Automatic Acceptance 11
5.3 Underwriting Limit 11
5.4 Issue Limit 11

Article 6
6.1 Facultative Cessions 12

Article 7
7.1 Underwriting Authority 14
7.2 Assessment of Risks 14
7.3 Underwriting Documents 14
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Article 8
8.1 Liability of the Retakaful Operator 15
8.2 Conversions / Extended Terms 15
8.3 Reductions, Lapses and Terminations 15
8.4 Increase in Original Certificate 16
8.5 Reinstatements 16
8.6 Other changes 16
8.7 Alterations and modifications 16

Article 9
9.1 Retakaful Risk Contributions 18
9.2 Liens 18
9.3 Substandard Extra Contributions 18
9.4 Mode of Payment 18
9.5 Selection Rebates 18
9.6 Application of Goods and Services Tax (GST) 19

Article 10
10.1 Claim Settlement 20
10.2 Ex-gratia Payments 21
10.3 Claim Reporting 21
10.4 Reduction in Claim Amount 21
10.5 Contested Claims 22
10.6 Claim Expenses 22
10.7 Charges on Late Payment of Claims 22
10.8 Extra-Contractual Damages 22
10.9 Claim Payments 22

Article 11
11.1 Retakaful Administration 23
11.2 Discrepancies 23
11.3 Payment of Balances 23
11.4 Offsetting of Balances 23
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Article 12
12.1 Arbitration 24
12.2 Right of Inspection 25
12.3 Error and Omission 26
12.4 Omission or Misrepresentation 26
12.5 Warranties and Representations 26
12.6 Compliance 28
12.7 Confidentiality 28
12.8 Reliance 31

Article 13
13.1 Cancellation of the Agreement 32
13.2 Cancellation of Existing Cessions under the Agreement 32
13.3 Transfer of business 33
13.4 Insolvency of the Takaful Operator 33
13.5 Insolvency of the Retakaful Operator 33
13.6 Internal Replacement 34

Article 14
14.1 Recapture 35

Article 15
15.1 Pooling and Surplus Participation 36
15.2 Retakaful Operator’s Remunerations 36
15.3 Shariah Board 36
15.4 Appendices 36
15.5 Notices 36

Article 16
16.1 Sanction Clause 37

Article 17
17.1 Waivers and Remedies 38
17.2 Severability 38
17.3 Entire Agreement 38
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GENERAL CONDITIONS

Article 1

1.1 Basic Agreement This Agreement consists of these General Conditions and the
following Special Conditions. In the event of any discrepancy the
Special Conditions prevail.

This Agreement is an indemnity risk sharing agreement solely

between the Takaful Operator and the Retakaful Operator.

The Takaful Operator binds itself to cede and the Retakaful

Operator agrees to accept such shares of all covered benefits
falling within the scope of this Agreement upon the terms set out in
these General Conditions and the Special Conditions.

This is an Agreement solely between the Takaful Operator and the

Retakaful Operator. The acceptance of retakaful under this
Agreement shall not create any right or legal relation between the
Retakaful Operator and the participant, beneficiary, or any other
party to any certificate of the Takaful Operator, which may be
ceded under this Agreement.

This Agreement represents the entire agreement between the

Takaful Operator and the Retakaful Operator and supersedes,
with respect to its subject matter, any prior oral or written
agreements between the parties.

1.2 Commencement and This Agreement takes effect on the date specified in the Special
Duration Conditions (“Commencement Date”) and applies to new business
written as from this date, unless otherwise specified in the Special
Conditions. It is concluded for an indefinite period, but may be
cancelled in accordance with Article 13, paragraph 13.1.

1.3 Scope This Agreement applies to the certificates or benefits specified in

the Special Conditions written by the Takaful Operator specified
in the Special Conditions on direct application.

Any certificates or benefits acquired by the Takaful Operator

through merger or amalgamation with another Takaful Operator,
retakaful or purchase of another Takaful Operator's certificates are
not automatically included under the terms of this Agreement.
Retakaful of such certificates or benefits may, however, be
covered by the terms of this Agreement, subject to prior mutual
agreement.

1.4 Mode of Retakaful All benefits are ceded on a yearly renewable term (YRT) basis
unless otherwise specified in the Special Conditions.

1.5 Notification of Major The certificate conditions, as well as the risk management
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Changes practices and forms of the Takaful Operator, form an integral part
of this Agreement.

Any material change in the above must be notified and accepted in

writing by the Retakaful Operator before any business written
under revised terms or business standards can be accepted under
this Agreement.

1.6 Alterations to the Alterations to this Agreement can be made at any time and they
Agreement must be made by addendum and signed by both parties. The
addendum to be attached in this Agreement from time to time shall
take precedent over this principal Agreement.

1.7 Jurisdiction This Agreement shall be construed and administered in

accordance with the laws of Kingdom of Bahrain and the rights
and obligations under this Agreement shall at all times be
regulated under those laws.

1.8 Utmost Good Faith This Agreement is entered into with the understanding that the
principles of good faith traditional to retakaful shall be adhered to
and shall govern the Parties’ rights and obligations, including their
warranties, representations and disclosures in the performance
and enforcement of this Agreement.

The Parties realize that unforeseen events occasioned by the fault

or action of neither Party may occur during the term of this
Agreement and commit to work together in good faith to
addressing such events should and when they occur with an
objective of causing the overall intent of the Agreement to be
served.
 -7-

Article 2

2.1 Retakaful Operational The Takaful Operator and the Retakaful Operator agree to bind
Clause into this Agreement whereby the Takaful Operator agree to
authorize the Retakaful Operator to manage and invest the
retakaful pool in the manner deemed fit by the Retakaful Operator
and in accordance with Shariah principles.

The Takaful Operator shall contribute to the Retakaful Pool under

the principle of Tabarru’, by way of Retakaful Contribution and
mutually agrees to help other participants that contribute toward
the specified Retakaful Pool in the event of covered loss occurring
during the specified period of retakaful coverage, as set out in the
Special Conditions.

According to the applicable Shariah rules and principles (as

defined by the relevant Shariah Advisory bodies), the Retakaful
Operator takes over the duties:

a. To act as Wakeel in managing the Retakaful Pool and

Mudharib for managing the assets of Retakaful Pool.
b. To provide Qard Hasan (interest free Loan) to the Retakaful
Pool if needed.

The Retakaful Operator shall have complete and unfettered

discretion to manage the Retakaful Pool with power to buy, sell
and transpose any securities, or to make other investments or to
deposits monies or to permit all or any part of the Retakaful Pool to
remain in actual state of investment thereof for so long as the
Retakaful Operator shall deem fit provided that the said
investments are made in accordance with the Shariah principles.

The Retakaful Operator may in performance of its duties

hereunder employ as its agent an attorney, solicitor, accountant,
stockbroker or other person or corporations to transact any
business or function done in the execution hereof and may
delegate to such agent any of powers contained herein as the
Retakaful Operator may deem fit.

The Retakaful Operator shall not be liable for any act, receipt,
omission, neglect or default of any banker, broker or person with
whom or into whose hands any money or securities forming part of
the Retakaful Pool may be deposited nor for the insufficiency or
deficiency of any security in which any money forming part of the
Retakaful Pool shall be invested nor for any loss not directly
attributable to its own dishonesty or the wilful omission of some act
known by it to be a breach of trust.

The Retakaful Operator shall not be responsible for the authenticity

of any document of title or certificate relating to any investment nor
for the authenticity of any signature or of any seal affixed to or any
endorsement on any document of title or any certificate or to any
transfer or to form of application, endorsement or other document
 -8-

affecting the title to or transmission of investments or be in any

way liable for any forged or unauthorized signature on or any seal
affixed to such transfer, form of application, endorsement or other
document or for acting upon or giving effect to any such forged or
unauthorized signature or seal.

The Retakaful Operator will exercise due diligence, skill and care
in managing and investing the Retakaful Pool but shall not be
liable for any loss in the value of the Retakaful Pool or any of its
constituent parts due to market forces or other factors beyond its
control or due to any act or omission in good faith and not arising
from any gross negligence on the part of the Retakaful Operator.
 -9-

Article 3

3.1 Sum at Risk The sum at risk of a certificate or benefit for a given certificate year
is the current sum covered payable on death or other participated
event.

Liens (underwriting / contingent debts) shall not be taken into

account when determining the sum at risk.

3.2 Sum at Risk Ceded The sum at risk ceded for a given certificate year is the Retakaful
Operator’s share of the sum at risk.
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Article 4

4.1 Retention Limits of the The Takaful Operator binds itself to retain for own account the
Takaful Operator amount for each of the benefits and risk classes (e.g. issue ages,
underwriting classes, etc.) covered by this Agreement as specified
in the Special Conditions.

For the determination of the retention every certificate with the

Takaful Operator on the same certificateholder shall be taken into
account, unless otherwise specified in the Special Conditions.

This Agreement has been concluded on the basis that the Takaful
Operator shall keep any amounts up to the retention limits
specified in the Special Conditions in full. The Takaful Operator
binds itself to inform the Retakaful Operator in writing of any
deviation from this practice.

The Takaful Operator may not cede, on any basis, the amount it
has retained on the business ceded under this Agreement without
the prior written agreement of the Retakaful Operator

4.2 Change in Retention The Takaful Operator may alter the retention limits specified in the
Limits Special Conditions at any time by giving the Retakaful Operator
notice in writing ninety (90) days in advance. Such alteration shall
apply only to new business written as from the date on which the
alteration takes effect. Any change in retention shall not be
applicable to existing business.

4.3 Minimum Sum at Risk There shall be no cession if the sum at risk ceded is less than the
Ceded amount specified in the Special Conditions.
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Article 5

5.1 Participation of the The share of the Retakaful Operator in the cession of any
Retakaful Operator certificates or benefits falling within the scope of this Agreement is
specified in the Special Conditions.

5.2 Automatic Acceptance The automatic acceptance for each of the benefits and risk classes
(e.g. issue ages, underwriting classes, etc.) covered under this
Agreement is as specified in the Special Conditions; the
Retakaful Operator binds itself to accept automatically its share of
the amounts specified.

For the determination of the automatic acceptance, every

certificate on the same certificate holder ceded by the Takaful
Operator with the Retakaful Operator shall be taken into account,
unless otherwise specified in the Special Conditions.

Should the Takaful Operator alter its retention or have a material

change in its principal risk management practices or personnel, the
Retakaful Operator may alter the automatic acceptance from the
same date.

5.3 Underwriting Limit The underwriting limit (automatic issue limit) of the Takaful
Operator for each of the benefits covered by this Agreement is
defined as the sum of the retention and the automatic acceptance.

5.4 Issue Limit The issue limit of the Takaful Operator for each of the benefits
covered by this Agreement is as specified in the Special
Condition.
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Article 6

6.1 Facultative Cessions If any part of a certificate or benefit is in excess of the respective
underwriting limit, the entire certificate or benefit shall be
considered facultative and offered to the Retakaful Operator for
assessment before the risk is accepted. The Retakaful Operator
shall not have any liability for such certificates or benefits until they
have been assessed by the Retakaful Operator and accepted by
the Takaful Operator as provided hereafter.

For facultative cases, the Takaful Operator shall provide the

Retakaful Operator with the complete takaful papers (takaful
proposal, medical reports, attending physician report and
confidential reports and etc) for assessment before the risk is
accepted. In certain circumstances the Retakaful Operator may
request for additional information or investigations. The Retakaful
Operator shall assess the cases as soon as possible and shall
advise the Takaful Operator of the decision without delay.

The submission of substandard risks for rating by the Retakaful

Operator shall be arranged in accordance with the conditions
stipulated in Clause 5.2 of the Special Conditions.

In the case of substandard risks submitted to the Retakaful

Operator in accordance with paragraph 3 of this Article, the Takaful
Operator shall be bound by the conditions advised to it by the
Retakaful Operator. Should the Retakaful Operator receive a
proposal from another Takaful Operator for the takaful of a
participant which it has already assessed for the Takaful Operator,
the Retakaful Operator shall base its offer on the same principles
of assessment. If, however, such new retakaful papers allow a
more favourable assessment of the case, the Retakaful Operator
shall be obliged to inform the Takaful Operator accordingly,
provided that the period between the new and previous proposal
does not exceed one (1) year.

If the reinstatement of a certificate submitted to the Retakaful

Operator is made subject to a further medical examination, the
Takaful Operator shall arrange for the examination and shall
submit the reports to the Retakaful Operator for assessment. The
application for the reinstatement shall then be handled in
accordance with the terms of this Article.

The Retakaful Operator's facultative assessment shall be valid for

a period of ninety (90) days; unless written acceptance of the
assessment, together with notification of the effective date of the
cover, is received by the Retakaful Operator in this period, no
retakaful liability shall be deemed to exist.

A certificate or benefit accepted facultatively by the Retakaful

Operator shall be subject to the conditions of this Agreement
unless otherwise specified.
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A facultative assessment made by the Retakaful Operator applies

to the entire certificate; the Takaful Operator may ceded it
elsewhere or retain them for its own account if it does not agree
with the assessment made by the Retakaful Operator.
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Article 7

7.1 Underwriting Authority The Takaful Operator has the authority to underwrite all certificates
or benefits within the underwriting limit.

7.2 Assessment of risks The principles and recommendations set out in the Retakaful
Operator's current underwriting manuals, together with the medical
underwriting requirements mutually agreed upon and documented
in the Special Conditions, form the basis for the assessment of
these certificates or benefits.

The terms of cession shall be in agreement with these principles

and recommendations.

7.3 Underwriting Documents For all certificates or benefits which are to be assessed by the
Retakaful Operator, whether facultative or automatic, the Takaful
Operator shall provide copies of all relevant documents.

In addition, the Retakaful Operator may request copies of all

relevant documents in respect of any certificates or benefits
already covered under this Agreement.

These documents shall be supplied in English, or a language

acceptable to both parties as specified in the Special Conditions.
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Article 8

8.1 Liability of the Retakaful The liability of the Retakaful Operator shall commence
Operator simultaneously with that of the Takaful Operator, subject to Article
5, paragraph 5.1, and shall cease at the same time as that of the
Takaful Operator, unless otherwise provided for in the Special
Conditions. In addition, such liability is limited to claims under the
benefits specified in Article 1, paragraph 1.3, occurring during the
validity of this Agreement. The effective dates of such claims are
as per the certificate conditions of the Takaful Operator, unless
otherwise specified in the Special Conditions.

All cessions and liabilities under this Agreement are in the original
currency of the certificate.

Apart from claim expenses (see Article 10, paragraph 10.6), the
Retakaful Operator shall not participate in any original taxes or
expenses, unless otherwise specified in the Special Conditions.

8.2 Conversions / Extended In the event of the conversion of a certificate ceded under this
Terms Agreement pursuant to a contractual right to convert, the
certificate arising from the conversion shall be ceded in such a
way that the amounts retained for each of the certificates and
benefits remain unchanged and on the terms specified in the
Special Conditions.

Where a certificate or benefit is maintained in force by extended

term provisions, the Retakaful Operator shall participate in the
sum at risk in such a way that the amount retained by the Takaful
Operator at the time of extension remains unchanged.

8.3 Reductions, Lapses and In the event of reduction, lapse, or termination of a Certificate, the
Terminations of Original cession will be reduced or terminated accordingly, subject to the
Certificate Takaful Operator maintaining its retention and the same reduction
ratio being applied to all Retakaful Operators covering said
Certificate.

The reduction in cession will apply first to the Certificate or

Certificates being reduced and then, on a chronological basis, to
other retakaful certificates on the participant, beginning with the
oldest certificate. If the amount of reduction exceeds the amount
ceded on a certificate, the cession on that certificate will be
terminated.

If a Certificate ceded under this Agreement lapses or is

terminated, the cession will also terminate.

In the event of reduction, surrender, death claim or termination of

a Certificate or Certificates ceded under this Agreement, the
Retakaful Operator will not refund any unearned retakaful
contribution or commissions unless otherwise provided for in the
Special Conditions.
 - 16 -

8.4 Increase in Original If the sum covered of a certificate or benefit ceded under this
Certificate Agreement is increased without evidence of health in accordance
with the certificate conditions (such as an inflation-proofing
option), the sum at risk ceded shall be increased by the same
amount, unless otherwise specified in the Special Conditions.

Any non-contractual increase shall be subject to assessment as

per Articles 6 and 7.

8.5 Reinstatements If a certificate or benefit ceded under this Agreement is reinstated

without evidence of health in accordance with the certificate
conditions, the cession shall also be automatically reinstated and
the Retakaful Operator shall receive all outstanding retakaful
contributions. Otherwise, reinstatements shall be subject to
assessment as specified in Articles 6 and 7.

8.6 Other changes The Takaful Operator must provide written notification to the
Retakaful Operator of any change which significantly affects the
original terms or conditions of any risk ceded hereunder not later
than thirty (30) days after the change takes effect. The Retakaful
Operator will provide written notification to the Takaful Operator as
to the Retakaful Operator's acceptance or rejection of the change
within thirty (30) days after receipt of notice of the change. If the
Retakaful Operator does not accept any such change, the
Retakaful Operator's liability under this Agreement will be
determined as if no change had occurred.

In the event of any other change to any benefits ceded under this
Agreement not listed above, the Retakaful Operator’s written
approval shall be obtained prior to such change becoming
effective.

8.7 Alterations In the event that a Certificate covered under this Agreement is
and Modifications partially surrendered, the ceded portion will be adjusted in the
same proportion to that of the principal sum covered and sum at
risk ceded will continue in accordance with the provisions of the
Certificate. Retakaful payments for the adjusted Certificate will be
calculated on the basis of the original issue age of the participant
and the duration of the Certificate at the time the adjustment
became effective, i.e. point-in-scale basis. If applicable, a
prorated contribution and allowance will be returned by the
Retakaful Operator to the Takaful Operator.

Any Certificate ceded under this Agreement that is converted,

exchanged or replaced will be considered New Business. The
Takaful Operator will notify the Retakaful Operator on its
statement of account within one hundred and twenty (120)
calendar days after the effective date of the conversion, exchange
or replacement.

The Retakaful Operator will not participate in cash surrender

values, certificate loans, dividends, and paid-up additions unless
otherwise provided for in the Special Conditions.
 - 17 -

Additions or alterations to any of the conditions of Article 8

paragraph 8.7 will be reported sixty (60) calendar days prior to the
effective date of change to the Retakaful Operator for written
approval.
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Article 9

9.1 Retakaful Risk The retakaful risk contribution rates for each of the benefits ceded
Contributions are as set out in the attached Special Conditions. The retakaful
contribution is calculated as the product of the appropriate retakaful
risk contribution rate (divided by 1,000) and the current sum at risk
ceded, except where specified in the Special Conditions
Appendices. Unless otherwise specified in the Special
Conditions, the retakaful contribution rates remain valid for the
entire duration of the original certificate.

9.2 Liens Where an underwriting / contingent debt or lien has been imposed
on the certificate the retakaful contributions shall be calculated as if
there were no such debt or lien.

9.3 Substandard Extra For all benefits where an extra contribution has been charged the
Contributions retakaful contribution shall be adjusted as follows:

• If a cession is accepted on the basis of a loading expressed in

terms of percentage extra mortality or morbidity, the retakaful
contribution shall be increased proportionally to the increased
mortality rate.

• If a cession is accepted on the basis of a constant extra

contribution, the Retakaful Operator shall receive a
proportionate share of the extra contribution. This share shall
be based on the ratio between the sum at risk ceded and the
total sum at risk.

The Retakaful Operator shall receive a proportionate share of any

contributions for additional benefits specified in the Special
Conditions of the Agreement, as well as for any extra contributions
the Takaful Operator may collect for the coverage of special risks
(travelling, climate, occupation, etc.). This share shall be based on
the ratio between the sum at risk ceded and the total sum at risk.

9.4 Mode of Payment Unless otherwise specified in the Special Conditions, the
retakaful contributions shall be credited in advance to the current
account for the whole certificate year, regardless of the method by
which the takaful contributions are paid. If, however the Takaful
Operator is unable to collect any contributions or contribution
instalment other than by reasons of a claim the corresponding part
of the retakaful contribution shall be refunded.

The method of settlement is also indicated in the Special

Conditions.

9.5 Selection Rebates The Retakaful Operator shall pay to the Takaful Operator the
rebates as specified in the Special Conditions.

If any retakaful contributions or instalments of retakaful

contributions are refunded to the Takaful Operator, any
corresponding retakaful rebates previously credited to the Takaful
Operator shall be reimbursed to the Retakaful Operator.
 - 19 -

9.6 Application of Goods and The retakaful contribution rates do not include Goods and Services
Services Tax (GST) Tax (GST).
 - 20 -

Article 10

10.1 Claim Settlement The Takaful Operator is responsible for the settlement of claims in
a prudent and professional manner in accordance with the
certificate conditions up to the automatic claim limits as specified in
the Special Conditions. Any settlement within these limits is
binding upon the Retakaful Operator to the extent of its liability.

For claims up to the automatic claim limit, the Retakaful Operator

shall accept the good faith decision of the Takaful Operator in
settling any claim or suit and shall pay its share of net retakaful
liability upon receiving proper evidence of the Takaful Operator’s
having settled with the claimant.

Notwithstanding the above, for all cases which were facultatively

ceded to the Retakaful Operator, or for claims exceeding the
automatic claim limits, the Takaful Operator shall cooperate fully
with the Retakaful Operator, and any other person or persons
designated by the Retakaful Operator, in the investigation,
adjustment, settlement and defence of any such claim. The
Takaful Operator shall send all papers to the Retakaful Operator,
which then has five (5) working days to respond with a
recommendation after receipt of all required documentation before
the Takaful Operator concedes liability, makes a settlement with
the claimant or declines the claim. For products with regular
payments, the same procedure shall apply at each claim review
date.

If the Retakaful Operator does not revert to the Takaful Operator

within five (5) working days with its recommendation, the Takaful
Operator may in good faith settle any claim or suit and the
Retakaful Operator shall accept the good faith decision of the
Takaful Operator in settling such claim or suit and shall pay its
share of net retakaful liability upon receiving proper evidence of the
Takaful Operator’s having settled with the claimant.

The Takaful Operator shall follow the recommendation of the

Retakaful Operator for all cases which were facultatively ceded to
the Retakaful Operator, or for claims exceeding the automatic
claim limits. If the Takaful Operator is not in agreement, and no
mutual agreement can be reached with the Retakaful Operator,
then the Takaful Operator has the option either of making an ex-
gratia payment as specified in Article 10, paragraph 10.2, or of
submitting the claim under consideration to arbitration in
accordance with Article 12, paragraph 12.1.

In the event of any material change in the claims management

practices or personnel of the Takaful Operator, the Retakaful
Operator may alter the automatic claim limits from the same date.

10.2 Ex-gratia Payments Any payments made by the Takaful Operator on an ex-gratia basis
(i.e. those payments which the Takaful Operator is not required to
make according to the certificate conditions) involving a retakaful
 - 21 -

certificate shall not be binding on the Retakaful Operator without its

prior written consent.

10.3 Claim Reporting All claims under this Agreement shall be reported to the Retakaful
Operator in the quarterly statements for claims reported during the
relevant quarter, except for claims exceeding the automatic claim
limits which shall be reported within five (5) working days. Unless
otherwise specified in the Special Conditions, the Takaful
Operator shall subsequently provide copies of all the relevant
documents which give clear proof of liability in English, or a
language acceptable to both parties as specified in the Special
Conditions.

10.4 Reduction in Claim In cases where the Takaful Operator settles a claim for less than
Amount the full benefit covered under the certificate, the Retakaful
Operator shall pay only its proportionate share of the actual
benefits paid. This share shall be calculated according to the ratio
between the sum at risk ceded and the total sum at risk under the
certificate; in the case of additional benefits, it shall be calculated
according to the ratio between the ceded portions to total portions
of the additional benefits under the certificate. Any reimbursements
shall be credited to the Retakaful Operator in proportion to its
share.

Where the benefits payable under certificates issued by the

Takaful Operator are reduced due to governmental measures, the
liabilities of the Retakaful Operator shall be correspondingly
reduced.

Furthermore, where allowances from whatever source are granted

to the Takaful Operator towards the payment of benefits under its
certificates as a result of government directives, the Retakaful
Operator shall also receive a corresponding participation in such
allowances. In such cases, the Retakaful Operator’s share shall
be calculated from the reduced benefits and/or allowances in
accordance with the method described in the preceding paragraph.

10.5 Contested Claims The Takaful Operator’s right to manage its own affairs shall not be
restricted by this Agreement. If the Takaful Operator should
contest, negotiate or litigate a claim, the Takaful Operator shall act
in such a manner as would a competent takaful company who has
no retakaful. To this extent, the Retakaful Operator shall accept the
good faith decision of the Takaful Operator in settling any claim.

However, the Takaful Operator shall notify the Retakaful Operator

immediately of its intention to contest, negotiate or litigate a claim
involving a ceded certificate. The Takaful Operator shall also
notify the Retakaful Operator of any legal proceedings initiated
against the Takaful Operator in response to its denial of a claim.
Under such circumstances, should the Retakaful Operator believe
that the claim should be settled, the Retakaful Operator may
discharge its liability by paying the Takaful Operator its share of
the sum at risk ceded.

10.6 Claim Expenses
10.7 Charges on Late Payment
of Claims
10.8 Extra-contractual
Damages
10.9 Claim Payments
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The Retakaful Operator shall pay its share of any extraordinary
expenses which may arise in connection with the handling of
individual claims (legal fees (including disbursements), court or
arbitration costs, special investigation), but shall not be charged for
salaries or other emoluments of employees of the Takaful Operator
nor for any other internal loss adjustment or travelling expenses,
including the Takaful Operator’s administrative costs.
The Retakaful Operator shall only be liable to contribute to charges
on late payment of claims, in cases where the late claim payments
are as a result of investigations of or disputes from a claim to
which the Retakaful Operator has agreed.
The Retakaful Operator is not liable for extra-contractual damages,
such as punitive, bad faith or compensatory damages, which are
assessed against the Takaful Operator except where its actions
contributed to them; in which case the Retakaful Operator shall
contribute equitably to such damages.
Claim amounts are paid in accordance with Article 11 paragraph
11.3 to a current account to be nominated by the Takaful Operator.
On special request however, the Retakaful Operator shall remit its
share of the claim immediately after liability has been admitted by
the Takaful Operator, subject to Article 10, paragraph 10.1 and
Article 11, paragraph 11.4.
Where claims have been settled or are due to be settled by the
Takaful Operator, the Retakaful Operator shall remit its share of
such claims without delay if required by the Takaful Operator to do
so, in all cases in which the total claims attain or exceed the figure
indicated in the Special Conditions, if applicable, to this
Agreement. The Retakaful Operator shall, however, be entitled to
deduct from its share any balances due arising out of any of its
accounts with the Takaful Operator.
 - 23 -

Article 11

11.1 Retakaful Administration The retakaful administration is performed in the manner and within
the time limit allowed as specified in the Special Conditions.

The party responsible for the retakaful administration shall provide

bordereaux showing the individual certificate details as well as the
statements of account as soon as possible, but not later than eight
weeks, after the end of each accounting period.

The accounts shall show (separately for each cession series and
with an indication of the Retakaful Operator’s share) all the
amounts brought to account by either of the parties to this
Agreement in the course of an accounting period.

11.2 Discrepancies Should there be any incorrect or missing items in a statement of

account, such errors or omissions shall be corrected in the next
statement of account with the current balance being paid in full
unless the discrepancy is material. In such an event, settlement
shall be made in respect of those items that are agreed to be
correct pending resolution of the discrepancy.

11.3 Payment of Balances Balances shall be paid within thirty (30) days upon confirmation of
the accounts, in original currency unless otherwise specified in the
Special Conditions.

Confirmation of Accounts - The Retakaful Operator shall confirm

the accounts or raise any objections to them within four weeks
after receipt of the statement of accounts.

Should the Retakaful Operator be unable to confirm the account in

its entirety, the confirmed portion of the balance shall nevertheless
be paid immediately. As soon as the account has been fully
confirmed, the difference shall be paid immediately by the debtor.

11.4 Offsetting of Balances Any balances due for settlement may be set off against any other
balances outstanding between the Takaful Operator and the
Retakaful Operator in respect of family and / or general business.
 - 24 -

Article 12
12.1 Arbitration
(a) All disputes and differences between the parties arising
hereunder or in connection with this Retakaful Treaty,
including its formation and validity, and whether arising during
or after the period of this Retakaful Treaty, shall be settled first
by negotiation in good faith between the parties and where
such negotiation in good faith is not resolved within ninety (90)
days of the first written solicitation by either party to start the
negotiation process, such disputes shall be referred to and
finally resolved by arbitration administered by Central Bank of
Bahrain in the manner set out below. However, for any
disputes arising from non-payment of confirmed or undisputed
balances due according to the provisions of this Agreement,
the Parties shall refer the dispute to the courts of Kingdom of
Bahrain.

(b) The arbitration tribunal (Tribunal) shall, unless the parties

agree otherwise, consist of persons (including those who have
retired) with no less than ten years’ experience of family
Takaful or family retakaful or advising such business in a
professional capacity or as persons engaged in management
position in the industry itself or professional advisers or lawyers
serving in Takaful or retakaful, other than officers and other
persons with economic or financial interests in in the result of
the arbitration or in the two parties to this Agreement or
connected companies The Tribunal shall not have any
personal or financial interest in the result of the arbitration.

(c) Unless the parties agree upon a single arbitrator within thirty
(30) days of one receiving a written request from the other for
arbitration, the party requesting arbitration (the claimant) shall
appoint one arbitrator (the first arbitrator) and shall give written
notice thereof to the other party (the respondent). Within thirty
(30) days of receiving such notice, the respondent shall
appoint another arbitrator (the second arbitrator) and give
written notice to the claimant, failing which the claimant may
apply to the appointer hereinafter named to nominate an
arbitrator on behalf of the respondent.

(d) Once appointed, the first and second arbitrators shall, within
thirty (30) days of the appointment of the second arbitrator,
appoint a third arbitrator. Should they fail to do so then either
of them, or of the parties, may apply to the Appointer for the
appointment of the third arbitrator. However appointed, the
third arbitrator shall be the chairman of the tribunal.

(e) Upon acceptance of the appointment by the chairman, the

tribunal shall be constituted. The three arbitrators shall decide
by majority. If a majority cannot be achieved, the decision of
the chairman shall prevail.

(f) If an arbitrator, subsequent to his appointment, is unwilling or

unable to act, a new arbitrator shall be appointed to replace
him by the procedure set out above.
 - 25 -

(g) Unless otherwise extended or ordered by the tribunal within

fifteen (15) days of the appointment of the chairman, each
party shall submit its case to the tribunal within forty five (45)
days of the appointment of the chairman.

(h) The tribunal shall reach its decision by reference to the

customs and practices of international takaful and retakaful
business and shall apply or follow the laws of Kingdom of
Bahrain. In the event of conflict between the customs and
practices and the proper law, the customs and practices shall
prevail in so far as permitted by the applicable law. The
tribunal shall not be bound by the formal rules of evidence.
The tribunal shall have power to fix all procedural rules relating
to the conduct of the arbitration.

(i) The tribunal shall, within sixty (60) days of reaching its
decision in the arbitration, issue to the parties its written and
reasoned award. The award shall be final and binding on the
parties which covenant to carry out the same. If either of the
parties should fail to carry out the award, the other may apply
for its enforcement to a court of competent jurisdiction in
Kingdom of Bahrain.

(j) All costs of the arbitration shall be at the discretion of the

tribunal which may direct to and by whom and in what manner
they shall be paid.

(k) The parties agree to keep any dispute, testimony, documents

produced and any outcome of the arbitration confidential.

(l) The seat of the arbitration shall be Manama, Kingdom of

Bahrain and the language to be used in the arbitration
proceedings shall be English, unless otherwise agreed.

(m) This article remains valid, should this Agreement be declared

or considered void.

12.2 Right of Inspection Upon request the Takaful Operator shall furnish the Retakaful
Operator with detailed information concerning the risks ceded
under this Agreement. In particular, the Retakaful Operator shall be
entitled to request that

a) copies of the whole or part of any documents relating to the risks

and their cession be made available to it at its own expense,

and/or

b) during the Takaful Operator’s normal office hours the documents

mentioned under a) be made available to a representative of the
Retakaful Operator who shall be named in advance. Notification of
such visits shall normally be given two (2) weeks in advance and
even in urgent cases at least forty-eight (48) hours in advance
failing which the Takaful Operator reserves its right to decline such
inspection. Any other books, records, information, systems, the
internal control environment and audit reports not related or
relevant within the scope of this Agreement shall be deemed off-
 - 26 -

limit to the Retakaful Operator’s authorised representative.

The Retakaful Operator shall have this right of inspection as long

as at least one risk is ceded under this Agreement.

This Article shall survive any insolvency proceedings and for as

long as there are obligations outstanding under this Agreement.

12.3 Error and Omission If either party inadvertently causes or allows any error or omission
to occur, such error or omission shall not relieve the other party
from any liability which would have attached had the error or
omission not occurred. Upon discovery, the party in fault will rectify
immediately such error or omission and undertakes that all other
similar errors or omissions, whether the error was of a manual or of
a systematic nature are rectified as well.

Should similar errors or omissions of a systematic nature or manual

nature occur again, the party not in fault has the right to be relieved
from liability arising from such error or omission, provided that such
error existed at the time of the original rectification.

Manual errors occurring after the date on which prior errors should
have been rectified shall continue to be subject to the application of
the first paragraph.

Except as may otherwise be provided in this Agreement, nothing in

this article shall be held to override any specific provision of
the Agreement and the liability of the other party shall not be any
greater than it would have been had the error or omission not
occurred.

12.4 Omission or In case of omission or misrepresentation by the person covered

Misrepresentation resulting in a refund by the Takaful Operator of all or part of any
contributions, the Retakaful Operator will pay to the Takaful
Operator its Proportionate Share of such contribution
reimbursement minus the amount of the corresponding retakaful
commissions, without interest, and such payment shall be in lieu of
any other obligation under this Agreement.

12.5 Warranties and The Parties warrant and represent that they are free to enter into
Representations this Agreement and are not under any restriction or prohibition
(regulatory, legal or otherwise), which might prevent or adversely
affect their ability to fulfil their obligations under this Agreement.

The Takaful Operator warrants and represents that it has obtained,

from its certificateholders for the purposes of underwriting or claims
or payment or approval or decision, all necessary consent that
personal data gathered by the Takaful Operator may be passed to
the Retakaful Operator and used for the purposes of effecting this
Agreement.

The Takaful Operator warrants and represents to the Retakaful

Operator as a continuing warranty and representation that all
information supplied by the Takaful Operator to the Retakaful
 - 27 -

Operator in connection with this Agreement prior to the Agreement

Commencement Date and the date of its execution, is to the best of
the knowledge and belief of the Takaful Operator true, complete
and accurate in all respects and the Takaful Operator does not
have actual knowledge of any such facts or circumstances that
have not been disclosed to the Retakaful Operator and which might
in the reasonable opinion of the Retakaful Operator if disclosed,
adversely have affected the decision of the Retakaful Operator in
considering whether or on what terms and conditions to provide
retakaful to the Takaful Operator. The Takaful Operator
acknowledges that the Retakaful Operator has relied upon the
information supplied by the Takaful Operator prior to the execution
date of the Agreement in deciding whether or not to enter into the
Agreement.

Should the Takaful Operator breach its warranty and

representation of this paragraph, the Retakaful Operator may, at
any time before and after the Agreement Commencement Date,
decide to offer revised terms and conditions to the Takaful
Operator. Should the Takaful Operator accept the revised terms
and conditions, these shall be applied as from the Agreement
Commencement Date. If the Parties do not reach agreement on
the revised terms and conditions, this Agreement shall be
terminated ab initio upon written notice of the Retakaful Operator.
Upon termination all payments made between the Takaful Operator
and the Retakaful Operator as a result of this Agreement shall be
returned. This right of the Retakaful Operator and the Takaful
Operator shall survive the termination of the Agreement.

12.6 Compliance This Agreement applies only to Certificates issued by the Takaful
Operator in compliance with all regulations applicable and in
jurisdictions in which it is properly licensed.

The Takaful Operator hereby represents and warrants that it has

established procedures to fully comply with all applicable laws,
regulations and guidelines dealing with the prevention and
detection of money laundering and terrorist financing.

The Takaful Operator understands that the Retakaful Operator has

established procedures to, and will fully comply with, the lists made
and maintained by the United States Department of Treasury
identifying persons or countries as being blocked persons and/or
countries, and acknowledges that in no case shall the Retakaful
Operator be liable to reimburse claims and benefits to the Takaful
Operator involving any person or entity named under any laws,
regulations, executive orders or similar actions that impose
sanctions or prohibit or restrict transactions or relations with
designated persons, entities, organizations or governments,
including without limitation the United States Department of the
Treasury lists of Specially Designated Nationals and Blocked
Persons.

The Takaful Operator and the Retakaful Operator represent that, to

 - 28 -

the best of their knowledge, they are in compliance with all laws,
regulations and regulatory directives applicable to the business
ceded under this Agreement, and each further represents that it
has put in place controls reasonably designed to ensure that there
is ongoing compliance. In the event that either Party is found to be
in non-compliance with any such law, regulation or regulatory
directive, the Agreement will remain in effect and the Parties will
endeavour in good faith to remedy the non-compliance.

12.7 Confidentiality 12.7.1 Personal identifiable medical, financial, and other personal
information about proposed, current and former applicants,
certificate owners, contract holders, covered persons,
annuitants, claimants and beneficiaries of certificates,
contracts or coverage ceded under this Agreement are
confidential. Business plans and trade secrets, mortality
and lapse studies, underwriting manuals and guidelines,
applications and contract forms, and the specific terms and
conditions of this Agreement are also confidential
(collectively, “Confidential Information”). The foregoing,
together with any other information which is marked or
otherwise designated to show expressly or by necessary
implication that it is provided in confidence, shall collectively
be referred to as ”Confidential Information”.

12.7.2 The following information shall not be considered as

Confidential Information if such information is:

a. available to the general public through no fault of either

Party;
b. independently developed by either Party;
c. lawfully acquired from a third party which is not covered by
a confidentiality agreement; or
d. required to be disclosed pursuant to any governmental,
judicial or statutory requirement provided that the Retakaful
Operator shall provide the Takaful Operator with prompt
written notice of such requirement to enable the Takaful
Operator to seek appropriate protective order or waive any
compliance with the provisions of this Article as the Takaful
Operator thinks appropriate. The Retakaful Operator shall
disclose only that portion of the information legally required
to be disclosed and shall exercise its best effort to obtain
assurance that confidential treatment shall be accorded to
such information.

12.7.3 The Retakaful Operator undertakes not to reproduce,

publish in any form whatsoever and/or disclose such
information or any part thereof to any person who is not a
Party to this Agreement without the prior written consent of
the other Party.

12.7.4 The above undertaking, as stipulated in 12.7.3 above, shall

not prevent disclosure required by any regulatory body,
court or other competent authority, nor to any associated or
subsidiary Takaful Operator of the Parties nor to their
auditors, professional advisors or consultants, nor in the
case of the Retakaful Operator to its retrocessionaires,
 - 29 -

provided always that the disclosure to such parties are

made on a “need-to-know” basis only. The recipient shall, in
relation to associated or subsidiary companies, auditors,
professional advisors, consultants and/or retrocessionaires,
ensure that such parties comply with the confidentiality
obligations contained herein as if they were a party hereto
and shall take all necessary steps as shall from time to time
be necessary to enforce such obligations of confidentiality.

12.7.5 The Retakaful Operator shall ensure that access of the

employees, representatives, agents and subcontractors of
the Retakaful Operator to the Confidential Information shall
be limited to those who strictly need to have the
Confidential Information in order to perform the necessary
functions for the purposes of this Agreement and any
Confidential Information shall only be used for the purpose
they were disclosed. The Retakaful Operator undertakes to
the Takaful Operator to procure that each of the persons
whom it discloses the Confidential Information strictly
complies with the terms of this Agreement as if it were a
party thereto, and shall take all such steps as shall from
time to time be necessary to enforce such obligations of
confidentiality.

12.7.6 The Retakaful Operator shall exercise the same degree of

care to guard against the disclosure or misuse of the
Confidential Information as it employs in respect of its own
confidential information, but in any event, with not less than
reasonable care and in compliance with all applicable laws
and regulations. Additionally, the Retakaful Operator
covenants that it shall:

(a) employ a high standard of care and diligence in

securing its office premises, information processing
facilities and information systems that process or store
Confidential Information;
(b) not use insecure internet services such as social
media sites, to communicate or store Confidential
Information.

12.7.7 The Retakaful Operator undertakes to take all necessary

actions to inform the Takaful Operator of any breach or
non-compliance of the confidentiality obligations herein or
any security incident or security breach involving the loss,
leakage or damage of Confidential Information immediately
upon becoming aware of such breach or non-compliance
and further undertakes to remedy such breach or non-
compliance (if capable of being remedied) within seven (7)
days as reasonably possible upon the Retakaful Operator
becoming aware of such breach or non-compliance.

12.7.8 All written Confidential Information or any part thereof

(including information incorporated in computer software)
together with any analysis, compilation, study, report or
other document or material as are in possession, power or
control of the Retakaful Operator shall be returned to the
Takaful Operator and any remaining copy destroyed by the
Retakaful Operator, when requested by the Takaful
Operator, and in any event, upon the termination of this
 - 30 -

Agreement.

12.7.9 In the event of the destruction of the Confidential

Information, the Retakaful Operator shall certify in writing to
the Takaful Operator, within fourteen (14) days, that such
destruction has been accomplished. The Retakaful
Operator shall make no further use of nor retain such
Confidential Information in any form whatsoever except as
required by any law, rule, regulation or internal compliance
of the Retakaful Operator.

12.7.10 No advertisement in respect of this Agreement shall be

published by the Retakaful Operator or with the Retakaful
Operator’s authority in any newspaper, magazine or in any
forms of advertisement without the prior written consent of
the Takaful Operator.

12.7.11 The obligations contained in this Article shall survive the

expiration or termination of the Agreement.
 - 31 -

12.8 Reliance The Retakaful Operator relies on documents and information

supplied by the Takaful Operator during the quote process in
deciding whether or not to enter into this Agreement. If these
documents and information contain any material omissions or
inaccuracies, the Retakaful Operator will have the right to
retroactively modify or void this Agreement.
 - 32 -

Article 13

13.1 Cancellation of the
Agreement
This Agreement may be cancelled by either party at any time by
giving ninety (90) days’ notice by registered letter. Such
cancellation shall be only in respect of business written after the
date on which the cancellation becomes effective. During such
notice period the Retakaful Operator shall continue to accept new
retakaful cessions under the terms of this Agreement.

The Retakaful Operator shall remain liable for all cessions existing
at the date of the cancellation set forth in the notice until their
natural expiry unless the parties agree otherwise and upon
recapture.

13.2 Cancellation of Existing Either party shall have the right to terminate this Agreement at any
cessions under the time with immediate effect if ;
Agreement
• The other party loses its legal ability to carry on business
through insolvency or regulatory action

• The other party becomes bankrupt or goes into liquidation

• The other party merges with another Takaful Operator or its

ownership or control undergoes an essential change

• The Government of the other party introduces any legal or

statutory provision having the effect of prohibiting or
rendering unlawful any of the provisions of this Agreement

The Takaful Operator reserves the right to cancel any existing

cessions for the conditions provided above, or if the Retakaful
Operator does not fulfil its obligation as per the current Agreement.

Provided always that for cancellations and terminations effected

under this Article 13, paragraph 13.2, the Retakaful Operator shall
refund to the Takaful Operator any unearned retakaful
contributions, as specified by the Special Conditions.

The Retakaful Operator shall remain liable for all claims of the
cession concerned incurred prior to the date of cancellation or
termination. All payments in respect of any such claims shall be
subject to the provisions of this Agreement. The Retakaful
Operator shall not be liable for claims incurred in respect of any
cessions cancelled or terminated after the date of cancellation or
termination.

13.3 Transfer of Business
13.4 Insolvency of the Takaful
Operator
13.5 Insolvency of the
Retakaful Operator
- 33 -
In the event that the certificates ceded under this Agreement are
transferred or novated by the Takaful Operator to another Takaful
Operator (the successor), the Takaful Operator shall ensure that
the cession of the portfolio shall remain in force, and the rights,
benefits and obligations of the Takaful Operator under this
Agreement shall be assigned to the successor, which shall be
bound by the terms of this Agreement as if it were a party to this
Agreement in place of the Takaful Operator, unless and except as
otherwise agreed between the Takaful Operator and the Retakaful
Operator.
The Retakaful Operator, on the other hand, agrees that none of its
rights, benefits and obligations under this Agreement shall be
transferred to another Retakaful Operator without the consent of
the Takaful Operator.
When deciding whether to provide consent to the transfer of
business, the party proposing the transfer may be required by the
other party to provide sufficient evidence, including evidence of
financial strength and the ability of the proposed transferee to
satisfy all of the obligations required of it under this Agreement. If
the one party is proposing the transfer, the other party may, in its
consideration of transfer of business, also take into account its risk
concentration limits and compliance with any other relevant
guidelines.
If the Takaful Operator is judged insolvent, the Retakaful Operator
will pay all retakaful amounts due under this Agreement directly to
the Takaful Operator, its liquidator, receiver or statutory successor
on the basis of the Retakaful Operator’s liability under the
Certificate or Certificates ceded without decrease because of the
Takaful Operator’s insolvency. The Takaful Operator’s liquidator,
receiver or statutory successor will give the Retakaful Operator
written notice of a pending claim on a Certificate ceded within a
reasonable time after the claim is filed in any insolvency
proceedings. While the claim is pending, the Retakaful Operator
may investigate and interpose at its own expense in the
proceedings where the claim is to be adjudicated, any defence
which the Retakaful Operator may deem available. The expense
incurred by the Retakaful Operator will be chargeable, subject to
court approval, against the Takaful Operator as part of the expense
of liquidation.
In the event of the insolvency of the Retakaful Operator, the
Takaful Operator will pay all retakaful amounts due under this
Agreement directly to the Retakaful Operator, its liquidator,
receiver or statutory successor on the basis of the Retakaful
Operator’s liability under the Certificate or Certificates ceded
without decrease because of the Retakaful Operator’s insolvency.
The Takaful Operator may terminate the agreement to New
Business and should have the right to recapture the business
 - 34 -

without fee.

13.6 Internal Replacement Should the Takaful Operator, its affiliates, successors or assigns,
initiate a program of internal replacement that includes any of the
certificates ceded hereunder, the Takaful Operator shall
immediately inform the Retakaful Operator. Such replacement
certificates shall be treated as falling within the Scope of this
Agreement upon the Retakaful Operator’s demand.

Internal replacement shall mean any instance in which a certificate

or part of a certificate is exchanged for another certificate which is
written by the Takaful Operator, its affiliates, successors or assigns,
be they in existence at the Agreement Commencement Date or
founded thereafter.
 - 35 -

Article 14

14.1 Recapture No recapture provisions apply to the certificates ceded under this
Agreement unless otherwise specified by the Special Conditions.

Unless otherwise specified in the Special Conditions, the

certificates and benefits ceded under this Agreement shall remain
in force until their natural expiry or termination by the
certificateholder.
 - 36 -

Article 15

15.1 Pooling and Surplus As per Surplus Distribution Policy of the retakaful pool approved by
Participation the Shariah Board of the Retakaful Operator, specified in the
Special Conditions.

If the Retakaful Benefit payments outbalance the Retakaful

Contributions under the Pool on an aggregate basis, the Retakaful
Operator shall provide an Advance Payment as an interest-free
loan (Qard-Hasan) to the Pool. This Qard-Hasan will be refunded
out of future surplus, if any, of the Pool as stated in the surplus
participation policy of the Retakaful Operator.

15.2 Retakaful Operator’s As per Surplus Distribution Policy of the retakaful pool approved by
Remunerations the Shariah Board of the Retakaful Operator.

15.3 Shariah Board The Retakaful Operator shall appoint a Shariah Supervisory Board
(“SSB”) that ensures that cover given in terms of this Agreement
on the side of the Retakaful Operator is according to Shariah
principles.

15.4 Appendices The appendices of this Agreement are as specified in the Special
Conditions and the appendices and any attachments shall form
part of this Agreement and have the same force and effect as if
expressly set out in the body of this Agreement.

15.5 Notice Any notices under this Agreement shall be in writing and sent by
registered letter and addressed to the other Party at its head office
as specified in the Special Conditions, or any other address that
such other Party may have advised for this purpose. Should an
interruption of communications prevent receipt of a notice, the
notice shall be deemed effective on dispatch, provided that
documentary proof of dispatch exists.
 - 37 -

Article 16

16.1 Sanction Clause No Retakaful Operator shall be deemed to provide cover and no
Retakaful Operator shall be liable to pay any claim or provide any
benefit hereunder to the extent that the provision of such cover,
payment of such claim or provision of such benefit would expose
that Retakaful Operator to any sanction, prohibition or restriction
under United Nations resolutions or the trade or economic
sanctions, laws or regulations of the European Union, United
Kingdom or United States of America
 - 38 -

Article 17

17.1 Waivers and Any failure to exercise or any delay in exercising a right or remedy
Remedies provided by this Agreement or at law or in equity will not constitute
a waiver of the right or remedy or a waiver of any other rights or
remedies. A waiver of a breach of any of the terms of this
Agreement or of a default under this Agreement will not constitute
a waiver of any other breach or default and will not affect the other
terms of this Agreement.

The rights and remedies provided by this Agreement are

cumulative and (subject as otherwise provided in this Agreement)
are not exclusive of any rights or remedies provided at law or in
equity.

17.2 Severability If any provision of this Agreement or part of any provision is found
by any court or other authority of competent jurisdiction to be
invalid, unenforceable or illegal, (a) the other provisions shall
remain in force and (b) the invalid, unenforceable or illegal
provision hereof shall be deemed replaced with retroactive effect
by a provision that is valid, enforceable and legal and that comes
closest to expressing the commercial and legal intention of the
invalid or unenforceable provision hereof.

17.3 Entire Agreement This Agreement constitutes the entire agreement relating to the
subject matter of this Agreement and supersedes any previous
agreement including but not limited to verbal agreements and/or
written letters between the Takaful Operator and the Retakaful
Operator relating to the subject matter of this Agreement.
 - 39 -

Made in duplicate and signed

in Pakistan,
For and on behalf of
Askari Life Assurance Company Limited
Window Takaful Operations

By: Attest:

Title: Title:

Date: Date:

in Manama, Kingdom of Bahrain

For and on behalf of Hannover Retakaful Bahrain B.S.C (c)

By: Digitally By:

signed by Altaf Digitally signed
Mohammad Hannover ReTakaful B.S.C by Sultan Ali
Title: Date: Title: Date:
2021.07.01 Underwriter
2021.07.01
09:55:38
Family & Health
08:45:42
Date: Date: +03'00'
+03'00'