Surplus Sharing FAQ

  1. What is surplus distribution? Can you explain it to me?​
    Surplus distribution is the process of sharing the underwriting surplus and investment income between the takaful operator and its participants at the end of the certificate period following an agreed sharing ratio.

    Surplus sharing is applicable to all general takaful certificates issued by Etiqa General Takaful Berhad and shall be payable once Etiqa General Takaful Berhad announces its financial results before the expiry of the certificate(s).

  1. When will I get my surplus payment?​
    Your surplus distributable amount, if any, will be paid to you after the end of the financial year following the expiry of your General Takaful certificates.

  2. How will Etiqa Takaful pay the surplus?
    The surplus amount will be paid directly into your savings or current account.

  3. Can it be credited combined into my bank account?
    Direct credit of surplus payment can be made into any of your GIRO accounts. It is advisable to update your bank account and contact details by:
    a) calling Etiqa Oneline at 1300 13 8888 or
    b) Completing the payment instruction form and returning it to the nearest Etiqa branch.
    c) Login into MyAccount

  4. I did not receive my surplus for one of my certificates, why is this so?
    You may not be entitled to the surplus for a number of reasons which include:
    a) The certificate was cancelled before it expires;
    b) No surplus declared for that year
    c) A claim was made within the period of takaful

  1. Is there any tax deductible on the surplus paid to me?​
    A withholding tax is levied on the investment income portion of the surplus distributed and this is deducted from the surplus payable to an individual participant.

  2. What is withholding tax?
    Withholding tax is the tax on income distributed to participants and it is only applicable to individual participants only. The amount withheld will be paid to LHDN directly by Etiqa. This is based on Income Tax Act 1967 S109E (1) to (7).

  1. If my certificate is cancelled, will I be entitled to surplus distribution?​
    Certificates cancelled prior to the expiry date shall not qualify for surplus distribution.

  2. I have made an endorsement, which resulted in an additional contribution paid, will this be considered for surplus distribution?
    Your additional contribution from an endorsement will be part of the annual contribution used to determine the surplus.

  3. I have made an endorsement and this has resulted in the refund of some contribution paid, how would this affect my surplus?
    The reduction of contribution from an endorsement will reduce the annual contribution used to determine the surplus distribution calculation.

Surplus Sharing Document

For detailed information and sample of how Surplus Sharing is calculated, please refer to the document below.