Performance Bond
As follows, there are two types of Performance Bond Takaful schemes offered under the Bond Takaful Class:
• Counter Indemnity
• Takaful Guarantee
• Takaful Guarantee for Foreign Workers
Subject Matter Covered
• Counter Indemnity/Takaful Guarantee
• The Project’s Contract between the Participant and the Principal
Scope of Cover
Counter Indemnity/Takaful Guarantee
Indemnify the Bank or the Principal of the contract against any claims or losses they may suffer up to the guarantee amount as a consequence of failure of the Participant (Contractor) to perform in accordance with the plans, specification and conditions of the contract.
Takaful Guarantee for Foreign Workers
The purpose of Takaful Guarantee for Foreign Workers is to guarantee the payment on the cost of repatriation of the foreign workers, in the event that the employers fail to repatriate their foreign workers to their country of origin, as per required by the Labour Department and stipulated in Rules 6 of the Labour (Immigrant Workers’ Employment Licenses) Rules, Labour Act (Cap 93) and Section 112 of the Employment Order, 2009.
The expenses (subject to approval granted by the Commissioner of Labour) shall include as follows:
• The cost of repatriation;
• The cost of subsistence*;
• Accommodation*; and
• Medical expenses*.
This Takaful Guarantee may also be used for payment of unpaid salaries which are not afforded by the employers in cases of disputes or as per instruction by the Commissioner of Labour.
Note:
*Expenses incurred during the course of repatriation only.
Products
Counter Indeminity / Takaful Guarantee
Indemnify the Bank or the Principal of the contract against any claims or losses they may suffer up to the guarantee amount as a consequence of failure of the Participant (Contractor) to perform in accordance with the plans, specification and conditions of the contract.
Takaful Guarantee for Foreign Workers
Introduction
Takaful Guarantee for Foreign Workers (or JITPA) is a new deposit payment method introduced by the Labour Department, as an alternative to cash deposit for payment and banker’s guarantee to the Labour Department for the employment of foreign workers.
Objective
1. This Takaful Guarantee functions as a payment guarantee to indemnify the Government of Brunei Darussalam, for the cost of repatriation of the foreign workers to their country of origin including the payment of daily subsistence, accommodation, and medical expenses in the course of the repatriation.
2. The Takaful Guarantee shall reduce the burden of employers in paying the security deposit for foreign workers.
Scope of Cover
The purpose of Takaful Guarantee for Foreign Workers is to guarantee the payment on the cost of repatriation of the foreign workers, in the event that the employers fail to repatriate their foreign workers to their country of origin, as per required by the Labour Department and stipulated in Rules 6 of the Labour (Immigrant Workers’ Employment Licenses) Rules, Labour Act (Cap 93) and Section 112 of the Employment Order, 2009.
The expenses (subject to approval granted by the Commissioner of Labour) shall include as follows:
• The cost of repatriation;
• The cost of subsistence*;
• Accommodation*; and
• Medical expenses*.
This Takaful Guarantee may also be used for payment of unpaid salaries which are not afforded by the employers in cases of disputes or as per instruction by the Commissioner of Labour.
Note:
*Expenses incurred during the course of repatriation only.
Period of Takaful
• The period of takaful cover will follow the validity of Work Pass / Special Approval as approved by Labour Department plus six (6) months.
Takaful Contribution
Takaful Contribution is based on the guarantee amount, business sectors and Takaful Brunei Am (TBA) underwriting assessments.
Application of Takaful Guarantee for Foreign Workers
Guarantee amount below BND49,999.00
• No cash collateral required;
• Application can be done at any of TBA Branches and Counters or TBA‘s authorised takaful agents.
Guarantee amount above BND50,000.00
• No cash collateral required;
• Application to be submitted to TBA Underwriting Unit (direct or through TBA’s authorised takaful agents) at:
Takaful Brunei Am Head Office
Level 1, Unit 9 & 10, Spg. 493, Kg Beribi
Jalan Gadong, BE1118
Negara Brunei Darussalam
Documents Required
• Duly completed Takaful Guarantee for Foreign Workers Proposal Form
• Copy of Company Business Registration (Section 16 & 17 – for Sole Proprietor and Partnership)
• Certificate of Incorporation & Form X – for limited companies
• Copy of Labour License / Quota
• Form BUR500/555 or Special Approval as approved by Labour Department
• Audited financial report for the past 2 years (if applicable)
• Bank Statement for the past 6 months (if applicable)
• Copy of Director’s Identity Card