A Study on The Conditions and Requirements of Nomination for Takaful Participant

Nurul Farhana Khalid, Ruzian Markom
Faculty of Law, Universiti Kebangsaan Malaysia


Nomination is essential in the estate planning. There are a few institutions that offer this mechanism in assisting heirs to accelerate the claiming process of their deceased’s estate, including the Takaful benefits. As a Takaful participant, he is responsible to appoint a nominee who is responsible for the fund distribution that is claimed by the entitled legal heirs in accordance with the Islamic law of inheritance (faraid). This article examined the nomination concept in Takaful system and its implication in Islamic law perspective and the Islamic Financial Services Act (IFSA) 2013, including the conditions and requirements of a nominee. This qualitative study used the doctrinal legal research to analyse the implication of nomination from the Islamic perspective and under the provisions of IFSA 2013 in relation to Takaful. The study found that the nomination gave rise to two consequences when the financial consumer died before maturity of the Takaful plan. The nominee would either be an executor or trustee and he is required to distribute the Takaful benefits to other heirs according to faraid or to distribute the benefit to a single or several beneficiaries as hibah recipient. However, the law is silent on the condition and requirement of a nominee. Therefore, it is recommended that the relevant law should be reviewed on the conditions and requirements of a nominee.

Keywords: Nomination, Takaful participant, Islamic Financial Services Act 2013, Conditions, Requirements of nominee