What is the TBE?
The Takaful Basic Examination (TBE) is the entry exam for takaful agents in Malaysia. It is run by IBFIM for the Malaysian Takaful Association (MTA), and you must pass it before you can be registered with the MTA and sell takaful for a licensed takaful operator. It is separate from the PCE, which is the exam for conventional insurance agents.
The exam format
| Run by | IBFIM, on behalf of the Malaysian Takaful Association |
|---|---|
| Part A | Basic takaful and medical and health takaful (compulsory for everyone) |
| Part B | General takaful (for general takaful agents) |
| Part C | Family takaful and investment-linked takaful (for family takaful agents) |
| Questions | Combined sitting: 100 multiple-choice questions (50 from Part A and 50 from Part B or C) |
| Time | 2 hours for the combined sitting; 1.5 hours for Part B or Part C on its own |
| Language | Bahasa Malaysia or English |
| Format | Online, remotely proctored, booked through the MTA exam portal |
| Pass mark | Published guides quote 55% or 60%; confirm the current figure with MTA or IBFIM when you book |
What the practice pack covers
104 original questions in eight topic areas: Shariah principles and muamalat, takaful models and funds, regulation and the takaful agent, contracts, disclosure and claims, family takaful and nomination, medical and health takaful, investment-linked takaful and general takaful. That covers all three parts, so you can practise whichever combination you are sitting. Every answer has an explanation and its source.
How to prepare
- Learn the key Arabic terms until you can define them without thinking: tabarru', ta'awun, wakalah, mudharabah, qard, hibah, riba, gharar and maisir.
- Understand how money flows between the participants' risk fund, the participant's investment account and the shareholders' fund.
- Learn how nomination works under Schedule 10 of IFSA 2013 for Muslim and non-Muslim participants, including conditional hibah.
- For Part B, learn indemnity, subrogation, contribution and average. For Part C, learn how units, charges and tabarru' work in ILT.
- Practise one topic at a time here, then sit full timed mocks before your exam.
Practice questions with answers
Tap a question to see the correct answer and explanation.
What is "ta'awun"?
- Mutual assistance or co-operation among participants
- A penalty for late payment
- The takaful operator's profit after expenses and tax
- A fixed investment return promised to every participant at maturity
Answer: A, Mutual assistance or co-operation among participants. Ta'awun means helping one another. Participants agree to help any member who suffers a covered loss. Source: IBFIM TBE study material; Quran, Surah al-Ma'idah 5:2.
Under the wakalah model, how does the takaful operator earn its income?
- It keeps all the contributions that are not paid out as claims
- It shares only in underwriting losses
- It charges an agreed wakalah fee for managing the fund
- It earns interest on contributions placed in conventional deposits
Answer: C, It charges an agreed wakalah fee for managing the fund. Wakalah is an agency contract. The operator acts as wakil (agent) for participants and earns a pre-agreed fee (ujrah). Source: Bank Negara Malaysia, Takaful Operational Framework (2019).
Which Act governs the licensing and conduct of takaful operators in Malaysia?
- Capital Markets and Services Act 2007
- Companies Act 2016 only
- Financial Services Act 2013
- Islamic Financial Services Act 2013
Answer: D, Islamic Financial Services Act 2013. IFSA 2013 regulates Islamic banks and takaful operators. The FSA 2013 covers conventional insurers. Source: Islamic Financial Services Act 2013 (Act 759).