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Insurance Distribution Agreement Template for Malaysia

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Key Requirements PROMPT example:

Insurance Distribution Agreement

"I need an Insurance Distribution Agreement under Malaysian law for my insurance company to appoint a digital platform provider as our distributor, with specific provisions for online sales and automated underwriting processes, planned to commence from March 2025."

Document background
The Insurance Distribution Agreement is a crucial document used to formalize the relationship between insurance providers and their distribution partners in Malaysia. This agreement is essential when an insurer wishes to expand its distribution network through various channels such as brokers, agents, banks, or digital platforms. The document must comply with the Financial Services Act 2013, Bank Negara Malaysia guidelines, and other relevant Malaysian regulations. It typically covers appointment terms, regulatory compliance requirements, operational procedures, commission structures, and service standards. The agreement is particularly important in the Malaysian context due to the strict regulatory environment and the need to ensure proper conduct in insurance distribution, including specific requirements for both conventional insurance and takaful products.
Suggested Sections

1. Parties: Identification of the insurer and distributor, including registration details and regulatory licenses

2. Background: Context of the agreement and brief description of the parties' business activities

3. Definitions: Definitions of key terms used throughout the agreement, including regulatory terms from Malaysian insurance laws

4. Appointment and Scope: Terms of appointment, territory, and scope of distribution authority

5. Regulatory Compliance: Obligations to comply with Malaysian insurance laws, BNM guidelines, and other applicable regulations

6. Distributor Obligations: Core responsibilities including sales practices, documentation, reporting, and customer service

7. Insurer Obligations: Support, training, materials, and other commitments from the insurer

8. Commission Structure: Commission rates, payment terms, and calculation methods

9. Compliance with Anti-Money Laundering Requirements: AML/CTF obligations and procedures

10. Data Protection and Confidentiality: Compliance with PDPA and data security requirements

11. Intellectual Property Rights: Usage of trademarks, marketing materials, and other IP

12. Record Keeping: Requirements for maintaining records as per Malaysian regulations

13. Audit and Inspection Rights: Rights of insurer and regulators to audit distributor's operations

14. Term and Termination: Duration, renewal, and termination provisions

15. Post-Termination Obligations: Obligations surviving termination and transition arrangements

16. Indemnity and Liability: Indemnification provisions and limitation of liability

17. Dispute Resolution: Process for resolving disputes under Malaysian law

18. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Digital Distribution Channel: Specific provisions for online or digital distribution platforms, including technical requirements and security measures

2. Bancassurance Arrangements: Special provisions if the distributor is a bank, including integration with banking operations

3. Corporate Agency Arrangements: Specific provisions for corporate agency relationships

4. Training and Certification: Detailed training requirements if the distributor needs specific certification programs

5. Performance Targets: Sales targets and performance metrics if agreed between parties

6. Marketing and Advertising: Specific provisions for marketing activities and approval processes

7. Premium Collection: If distributor is authorized to collect premiums, detailed procedures and controls

8. Claims Handling: If distributor is involved in claims process, specific procedures and authorities

Suggested Schedules

1. Schedule 1 - Products: List of insurance products covered by the agreement with detailed descriptions

2. Schedule 2 - Commission Rates: Detailed commission structure, rates, and special incentives

3. Schedule 3 - Service Levels: Service level agreements and performance metrics

4. Schedule 4 - Compliance Requirements: Detailed compliance procedures and checklists

5. Schedule 5 - Operating Procedures: Day-to-day operational procedures and requirements

6. Schedule 6 - Reporting Templates: Templates for required reports and documentation

7. Schedule 7 - Contact Details: Key contact persons and escalation matrix

8. Appendix A - Required Documentation: List of required documents for various processes

9. Appendix B - Training Requirements: Detailed training and certification requirements

10. Appendix C - Systems and Technical Requirements: Technical specifications for systems integration if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


















































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Relevant Industries

Insurance

Financial Services

Banking

Digital Finance

Financial Technology

Retail Banking

Islamic Finance

Professional Services

Corporate Services

Digital Commerce

Relevant Teams

Legal

Compliance

Distribution

Sales

Operations

Risk Management

Business Development

Partnership Management

Channel Development

Agency Development

Digital Distribution

Regulatory Affairs

Product Development

Marketing

Finance

Relevant Roles

Chief Executive Officer

Chief Distribution Officer

Head of Sales

Legal Counsel

Compliance Officer

Distribution Manager

Partnership Manager

Agency Development Manager

Bancassurance Manager

Digital Channel Manager

Risk Manager

Operations Director

Business Development Manager

Chief Operating Officer

Regulatory Affairs Manager

Channel Development Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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