THE PRACTICE OF TAKĀFUL BENEFIT (NOMINATION) IN THE CONTEXT OF IFSA 2013: A CRITICAL APPRAISAL

Nomination, in the context of takāful (Islamic insurance), involves the takāful participant nominating a person to receive the takāful benefits in the event of the participant’s death before the maturity of the takāful plan. Distribution of the takāful benefits that are to be received upon maturity of the takāful plan is a main concern arising in family takāful, an Islamic alternative to life insurance. Upon the death of the participant, the takāful benefits may either be payable to the estate of the participant or to a person nominated by the participant as the sole recipient of the benefits of such a takāful policy. The effect of such a nomination is the central focus of this research paper. Reference to the Islamic Financial Services Act 2013 (IFSA) is crucial to identify the nature, position and effect of nomination in Malaysia.