CoFAP Cycle
How It Works
01.
Each member will pay a one-time registration fee of RM3, and a periodic fund payment (Member’s Fund) of RM5 per month into the fund pool to meet members’ financial payout to members in the event of misfortune as per coverage detail. RM48 will go into the CoFAP fund pool and RM12 will be charged as the regular administrative costs (Walakah fee).
02.
Members’ Funds are collected in advance periodically annually by VSure.life to coordinate and manage CoFAP fund pool a fixed fee payable by the members.
03.
All payout submissions will be reviewed, confirmed, administered, and disbursed by VSure.life to members.
04.
At the end of each financial year, any unutilized funds may be redistributed as surplus refund to members subject to CoFAP fund renewal and roll over policy.
Calculation
Collective Fund Calculation Example
Yearly Contribution
RM5 x 12 months = RM60 (RM48 into pool fund and RM12 as Walakah fee)
Collective Member’s Fund
RM48 from pool fund x the number of participants
Example:
RM60 x 100,000 members = RM6,000,000 is the collective Member’s Fund made by all the participants to support the claims payment.
Shariah Principles
CoFAP is based on 3 Shariah Concepts
Tabarru’
(Voluntary Contribution)
The relationship between members and the CoFAP fund pool that takes the form of commitment of making contributions.
Ta’awun
(Mutual Assistance)
The relationship among members to provide mutual assistance / cooperation.
Wakalah
(Agency)
The relationship between Vsure.life and members, – a contract where a principal (muwakkil) authorizes another party as their agent (wakil) to perform a particular task on matters that may be delegated, with or without the imposition fee.
Scenarios
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Scenario 1
If there are two (2) positive cases of COVID-19 and deaths occur within the community, therefore:
2 claims x (RM500 immediate medical cost + RM25,000 upon death) = RM51,000 is the total claims payout from the CoFAP fund pool.
Assuming there are 100,000 participants, the claims payout is mutually shared among the current number of participants: RM51,000 / 100,000 = RM0.51
Therefore, RM0.51 will be deducted from the pool fund of each CoFAP participant.
Scenario 2
If there are two (2) confirmed cancer diagnosis and within the community, therefore:
2 claims x (RM15,000 for stage 3 onwards) = RM30,000 is the total claims payout from the CoFAP fund pool.
Again, assuming there are 100,000 participants, the claims payout is mutually shared among the current number of participants: RM30,000 / 100,000 = RM0.30
Therefore, RM0.30 will be deducted from the pool fund of each CoFAP participant.
Fund Pool
How Fund Pool Works
The CoFAP fund pool is maintained separately in a trust account and does not belong to VSure.life. The Members’ Funds are merely held on trust by VSure.life and shall not be invested in any non-approved investments. The CoFAP fund pool is managed by an appointed trustee and is maintained with one or more licensed financial institution in Malaysia held by VSure.life
The CoFAP fund pool is deposited directly into the Islamic Trust Account for Shariah compliance, and the trustee may invest the funds in Islamic Fixed Deposit with the consent from VSure.life.
Investment of CoFAP fund pool shall be restricted to Shariah-compliant instruments offered by Islamic Financial Institutions approved by Bank Negara Malaysia or the Securities Commission. Any fees payable for the investment activities shall be deducted directly from the CoFAP fund pool on actual fees-imposed basis.
Any cumulative payout exceeding the monthly payout limit will be roll-forward to next subscription month. There will always be funds available unless there are no members in CoFAP. However, in the event of CoFAP fund pool is insufficient to make any financial payout, VSure.life will call upon members for additional funding by giving a 30-days advance notice and payment method shall be executed online.
Monies which are not utilized during the term of CoFAP will be strategically managed which may result in surplus payout to members who are staying active more than 12 months at the end of financial year or a pro-rated surplus payout to members who terminates CoFAP.
Fees & Payment Method
Don’t Break Your Bank
VSure.life (CoFAP) shall impose several fees as follows:
One Time Registration Fee
RM3
To defray setup costs of program.
Administrative Fee
RM1
(from Member’s Fund)
Monthly administrative costs.
Fund Management Fee
RMX
Fee payable for fund management and investment activities charged by fund manager.
Fund Collection Method
Direct through – Payment by participants to Program Owner
Credit Card or Debit Card
