BIMB Integrated Annual Report 2017

22. TAKAFUL LIABILITIES (CONTINUED) (a) Takaful contract liabilities (continued) (i) Provision for outstanding claims (continued) Movement of provision for outstanding claims: GROUP GROSS RETAKAFUL NET RM’000 RM’000 RM’000 At 1 January 2016 741,069 (404,205) 336,864 Claims incurred during the year 1,053,099 (161,586) 891,513 Adjustment to claims incurred in prior accident years (60,464) 44,530 (15,934) Claims paid during the year (1,127,519) 244,762 (882,757) (Decrease)/Increase in IBNR (24,576) 15,275 (9,301) Effect of movement in exchange rates 575 (202) 373 At 31 December 2016/1 January 2017 582,184 (261,426) 320,758 Claims incurred during the year 1,011,841 (160,964) 850,877 Adjustment to claims incurred in prior accident years (10,176) 2,108 (8,068) Claims paid during the year (1,005,307) 163,996 (841,311) (Decrease)/Increase in IBNR (30,969) 323 (30,646) Disposal of subsidiary (1,729) 861 (868) Effect of movement in exchange rates (710) 298 (412) At 31 December 2017 545,134 (254,804) 290,330 (ii) Provision for unearned contributions The provision for unearned contributions and its movements are further analysed as follows: GROUP GROSS RETAKAFUL NET RM’000 RM’000 RM’000 31.12.2017 341,975 (71,308) 270,667 Note 11 31.12.2016 316,569 (62,969) 253,600 Note 11 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 221 Overview Value Creation Accountability Financial Statements Sustainability Performance Data Shareholders Information 21 st AGM Information Management Discussion & Analysis