For clearness and compliance, companies must contain a stronganalysis of premiums in their e-invoices. This aids policyholders in understanding what they are paying for. Premiums must be classified using certain specific codes, such as:

• 014:– Education and medical insurance
• 015:– Takaful or life insurance
• 022:– Other types of insurance
• 024:– Private retirement or deferred annuity schemes

Ifmany people have a share in a joint insurance policy:

• The person who receives the invoice, aka, the main policyholdermust be registered as the Buyer in the consolidated e-Invoice.
• In a case where another policyholder wants their own e-Invoice, the insurance company should issue it accordingly.

In some situations, insurance companies collect the payments on behalf of third parties, such as stamp duty or processing fee.

• In situations where a consolidated e-invoice is granted to the insurer, it must be included in their own e-invoice.
• In cased where the policyholder is invoiced directly, the company
• If the third party invoices the policyholder directly, then the insurance company doesn’t need to include these amounts in their e-Invoice.

Since these fees don’t count as the insurer’s revenue, they must be clearly separated from the insurance premiums.

• Master Policies (Sold to an Intermediary)
  • If the insurance company sells a master policy to an intermediary, the e-Invoice should go to the intermediary.
  • The intermediary must then issue a separate e-Invoice to the end customer for the amount collected.
  • If the intermediary doesn’t issue an e-Invoice, the insurance company must do it instead.
• Individual Policies (Sold Directly to Customers)
  • If the policy is between the insurance company and the customer, the e-Invoice must go directly to the policyholder, even if an intermediary was involved.

Whenever a payment is made for claims, by an insurance company, compensation, or benefits, it must issue a self-billed e-Invoice, whether the recipient is a person or a business.

• Supplier on the invoice will be the policyholder or beneficiary.
• The policyholder remains the supplier in the invoice when the insurer pays third parties such as repair shops, lawyers or hospitals.
• The insurance company can issue a single self-billed e-invoice to claim multiple claim benefits, the invoice can cover all the benefits as mentioned.

Interfund charges, such as wakalah fees, qard, and actuarial surplus transfers are also handled by insurance companies. As these are internal transactions happening within the same company, and that external parties are not involved in these transactions,there is no requirement for an e-invoice.

However,– Companies can still issue internal invoices for their own tracking if they want to, but it’s not necessary to do so.

Exempting these internal transactions from e-Invoicing reduces unnecessary paperwork and allows insurers to focus on compliance for external transactions.