Members should observe the objectives of the Association as set out in the Constitution of the Association inter alia:-

1.1. To elevate their status, safeguard and advance their interests, procure their general efficiency and proper professional conduct.

1.2. To ensure that employees of Members are professionally qualified, conversant with insurance and/or takaful laws and practices, and acquainted with current developments as they affect the insurance industry in general and insurance and takaful broking in particular.

1.3. To afford means of reference for amicable settlement of any professional differences and disputes that may arise from time to time.

1.4. To ensure that Members devote themselves to the insurance and/or takaful broking professions and do not carry on businesses inconsistent therewith.

1.5. To decide on questions of professional conduct and etiquette.

1.6. To promote the healthy growth of the insurance industry in line with National objectives.

2.1. The intention of MITBA in formulating this Code of Ethics and Conduct is to assist in establishing a recognised standard of professional conduct for all insurance and/or takaful brokers who should, in discharging their duties as such, comply with both the provisions and the underlying spirit and intent of this Code. This Code of Ethics and Conduct shall apply to all Members of the Malaysian Insurance And Takaful Brokers Association and their directors and employees.

2.2. This Code of Ethics and Conduct is intended as an explanatory statement of the principles which are expected to apply to the ethics and conduct of Members and their directors and employees.

The Code, however, does not in any way restrict any Member from formulating more comprehensive sets of rules in maintaining ethical standards if they so desire.

2.3. The three (3) fundamental principles of the Code are:-

2.3.1. Members shall at all times conduct their businesses with utmost good faith and integrity.

2.3.2. Members shall do everything possible to satisfy the insurance and/or takaful requirements of their clients and shall place the interest of their clients above all other considerations. Subject to these requirements and interests, Members shall have proper regard for others.

2.3.3. Statements made by Members or on their behalf in advertisements shall not be misleading or false.

2.4 Members are the agents of their clients and, as such, they are subject to the general law as it applies to agents. The provisions of the Code of Ethics and Conduct are not intended in any way to derogate from the general law of agency.

3.1. In the conduct of their businesses, Members shall provide advice objectively and independently.

3.2 Members shall use, or permit the use of, the description “ insurance broker” and/or “takaful broker” in connection with a business provided that business is carried on in accordance with the requirements of the Insurance Act 1996 and Takaful Act 1984 and the Constitution of the Malaysian Insurance And Takaful Brokers Association.

3.3 Members shall ensure that all work carried out in connection with their insurance and/or takaful broking businesses shall be under the control and day-to-day supervision of a qualified and experienced insurance and/or takaful broker and they shall do everything possible to ensure that their employees are made aware of this Code.

3.4 Members shall, on the request of their client, e plain the differences in, and the relative costs of, the principal types of insurance and/or takaful which, in their opinion best suit a client’s need.

3.5 Members shall ensure the use of a sufficient number of insurers/operators to satisfy the insurance and/or takaful requirements of their clients.

3.6 Members shall, upon request, disclose to any client who is, or is contemplating becoming, the holder of a policy of insurance/certificate, the amount of broking commission/takaful brokerage paid under any relevant policy insurance/certificate . Likewise, the insurance broker and/or takaful broker must reveal to its client all additional fees to be charged in lieu of or in addition to commissions/brokerage for servicing the account.

3.7 Although the choice of an insurer/operator can only be a matter of judgement, Members shall use their skills objectively in the best interests of their client.

3.8. Members shall not withhold from the policyholder/participant any written evidence or documentation relating to the contract of insurance/certificate without adequate and justifiable reasons being disclosed in writing to the policyholder/participant.

3.9. Members shall inform and obtain confirmation from their client of the name of the insurer(s)/operator(s) with whom the contract of insurance/certificate is placed or to be placed. This shall be done at the inception of the contract/certificate and any changes thereafter shall be advised at the earliest opportunity to the client.

3.10. Members must ensure that their employees do not engage in any business activity that conflicts or competes with the interests of the member firm.

3.11. Members must ensure completeness and accuracy of accounting records and reports.

3.12. Members shall maintain a separate bank account for all insurance premium/takaful contributions and claim moneys received on behalf of clients, insurers or operators and are prohibited from using funds from this account for their own expenses except their share of brokerage. The Rules on the operation of the Premium/Contribution & Claims Account as indicated in Appendix I attached form part of this Code.

3.13. Premium/Contribution and terms exactly as quoted and as debited by the insurer or reinsurer/operator or re-takaful operator must be conveyed faithfully by the Member to its client. A Member is not allowed to alter any premiums/contributions or terms quoted without the prior knowledge and consent of the client and the insurer or reinsurer/operator or re-takaful operator as the case may be.

3.14. Members are prohibited from negotiating any contract of insurance/takaful certificate with an insurer/operator not registered under the Insurance Act 1996 or Takaful Act 1984. 3.15. A Member must transmit funds between its client, insurer or reinsurer operator or re-takaful operator with minimum processing delay.

3.16. A Member must disclose all material facts as known to him in any negotiation and/or placement of any insurance or reinsurance cover takaful or re-takaful arrangement. Where a Member is an insurance broker or takaful broker as well as a reinsurance broker/re-takaful broker on the same risks, he must disclose this to all parties concerned.

4.1. Professional independence and integrity are fundamental to the insurance and takaful broking professions. Accordingly, Members shall inform all interested parties of any potential conflict of interest.

4.2. Members completing any proposal form, claim form, or any other material document on behalf of their client, shall do so truthfully and faithfully as instructed, and shall make it clear that all answers or statements are the client’s own responsibility. The client should always be encouraged to check the details and be reminded that the inclusion of incorrect information may result in a claim being repudiated.

4.3. Members shall have proper regard for the wishes of a policyholder/participant or client who desires to terminate any agreement to transact business with them.

5.1. Membership of the Malaysian Insurance and Takaful Brokers Association is an honour and privilege which carries with it duties and responsibilities which all Members should perform and be accountable for. In accepting membership of the Malaysian Insurance and Takaful Brokers Association a Member is expected to be fair in all dealings with Insurers/Operators, as well as clients whose interests it must protect and promote as if they were its own.

5.2. The relationship between Members and clients is confidential and, whilst it is necessary to obtain all relevant facts relating to the insurance and takaful requirements of their clients, all confidential information shall not be disclosed to others beyond that which is material and solely necessary to obtain the insurance and takaful required.

5.3. Any information acquired by Members from their clients or from any other confidential sources in the course of their professional work is privileged and Members shall not, use or appear to use such information for personal advantage or for the advantage of a third party or disclose such information without prior consent of their client unless there is a public duty or a legal or professional obligation or duty to disclose such information.

5.4. It is the duty of every Member to endeavour to protect its clients against fraud, misrepresentation or unethical practice in connection with all insurance and/or takaful transactions relating to its appointment as an insurance and/or takaful broker.

6.1. Employees of Members are prohibited from inducing clients in the form of cash or in kind, for the purpose of procuring business.

6.2. Employees of Members must not accept costly entertainment from policyholders/participants or clients unless they are able to reciprocate, either personally or by obtaining reimbursement from their broking companies through a proper expense voucher.

However, Members may give or Members’ employees may accept token gifts of nominal or no commercial value during festive seasons provided the giving/acceptance of such gifts would not place the employees or the client in a compromising position and if refusing the gifts would jeopardise Member/Client relations. Under no circumstances should gifts in the form of cash, bonds, negotiable securities, personal loans or airline tickets be given or accepted.

7.1 When advertising their services, directly or indirectly, Members shall ensure that statements made in such advertisements and public announcements shall not be misleading or bring disrepute to the insurance and takaful broking professions.

7.2 Any advertisement made by or on behalf of Members on any matters relating to any insurers’, reinsurers’, operators’ or re-takaful operators’ products shall be limited to those given by the insurers, reinsurers, operators, or re- takaful operators as the case may be, provided such matters to be advertised must have been duly considered by the Member in his professional capacity.

7.3. Members shall display, in the office where they carry on business and to which the public has access, a notice to the effect that a copy of the Code is available upon request and that if a member of the public wishes to make a complaint or requires the assistance of the Association in resolving a dispute, he may write to the MALAYSIAN INSURANCE AND TAKAFUL BROKERS ASSOCIATION at its office at Unit 303, Block A, Pusat Dagangan Phileo Damansara II, No. 15, Jalan 16/11, Off Jalan Damansara, 46350 Petaling Jaya, Selangor Darul Ehsan.

7.4 The words “ Member of the Malaysian Insurance And Takaful Brokers Association” should be featured with the name of the Member in all advertisements.

7.5. Any director or employee of a Member who is invited to address a public meeting or to write an article for publication on any aspect of insurance and takaful or insurance and takaful broking, shall identify himself as being a director or an employee of a Member of the Association.

Members shall adhere fully to the Insurance and Takaful Brokers’ Accounting Standards as per Appendix I, approved under Section 90 of the Insurance Act 1996 and any subsequent amendments thereto.

Members shall adhere fully to the Insurance and Takaful Brokers’ Brokerage/Fee Sharing Guidelines as per Appendix II, which are issued by Bank Negara Malaysia pursuant to Subsection 185 (2) of the Insurance Act 1996.

10.1 Declaration by All Directors and Executive Employees
Within one month from receipt of advice by MITBA on the effective date of this Code of Ethics, Members shall secure from each employee including all Directors, a declaration as per Appendix III attached herein.

In the case of a person to be employed, such declaration shall be obtained within seven (7) days from the date of appointment.

All declarations must be submitted to MITBA within ninety (90) days from the date of such declarations.

10.2 Declaration by Chief Executive Officer
All applications for the annual renewal of membership shall be subject to receipt by MITBA of a cheque in payment of the subscription fee in the stipulated amount together with a declaration signed by the Chief Executive Officer in the form as per Appendix IV attached herein.

Any amendments and/or changes to this Code of Ethics and Conduct shall automatically be binding and effective, from the date such amendments or changes are approved by Members either through a circular resolution or at a duly convened Extraordinary General Meeting/Annual General Meeting.

To ensure adherence to the Code of Ethics and Conduct, the management of Member companies must establish as soon as possible some effective monitoring devices. These should include:-

12.1 The Management should assign responsibility to the head of various departments to ensure compliance with the Code on a day–to-day basis and to handle general enquiries from employees on matters relating to the Code of Ethics and Conduct. Breaches observed should be reported to the management and Disciplinary Committee and centralised records should be maintained.

12.2 Cases of fraud should be reported immediately to Bank Negara Malaysia and the Police.

12.3 The Management is required to a report to the Association on breaches observed during each financial year and the corrective/punitive action taken within ninety (90) days from the close of each financial year or any other period as determined by Bank Negara Malaysia.

12.4 The Management, namely the Chief Executive Officer of the Member company, under existing disciplinary mechanism in place within each company, would be responsible for the day-to-day compliance with the Code of Ethics and Conduct, including maintenance of centralised records. Accordingly, it would also be the responsibility of the Chief Executive Officer to ensure that reports on breaches during each financial year and the corrective/punitive actions taken are duly submitted to Bank Negara Malaysia within ninety (90) days from the close of each financial year or any other period as determined by Bank Negara Malaysia.

A Member who has knowledge of any breach or alleged breach of the Code of Ethics and Conduct amongst Members is required to report such breaches to the Disciplinary Committee of the Association.

Any breach or alleged breach of this Code shall be dealth with in accordance with Article 19 – BREACHES OF THE LAW, ARTICLES, RULES OF THE CONSTITUTION AND CODE OF ETHICS AND CONDUCT of the Constitution of the Association.