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Things you need to know about hibah Takaful


The benefits of Hibah Takaful is that you can nominate anyone you want to receive the takaful benefit as a beneficiary through a conditional hibah (gift) upon the event of your death. The option for a beneficiary via conditional hibah is a special provision under the Islamic Financial Services Act 2013 (“IFSA 2013”), in order to ensure your loved ones receive the takaful benefits without having to go through the lengthy process for property inheritance.

In this article, you will learn about the benefits of having a nominee, the rules of Hibah Takaful and how the nomination process works.

Nominee as an executor or beneficiary under the Islamic Financial Services Act 2013

When planning to participate in a Hibah Takaful plan, you have the rights to nominate an individual (“Nominee”) to receive the takaful benefits either as an Executor or Beneficiary based on the concept of conditional hibah.

What is a nominee?

A nominee is an individual chosen by takaful participant either as an Executor or Beneficiary under conditional hibah to receive the takaful benefits.

What is an executor?

An Executor is an individual/administrator nominated by takaful participant to manage and distribute takaful benefits in due course of administration of the deceased takaful participant in accordance with the will of that takaful participant or the law relating to the distribution of the estate of deceased persons as applicable to that takaful participant.

What is a beneficiary?

A beneficiary under conditional hibah is an individual named by takaful participant as recipient of takaful benefits under the conditional hibah based on the percentage specified in the nomination form. The takaful benefits payable to the beneficiary upon the death of the takaful participant and such takaful benefits transferred will not form part of the estate of the deceased takaful participant or be subject to his debts.

Why is it necessary to have a nominee?

Through nomination, the takaful benefits will be able to be distributed more quickly without the need to obtain a Grant of Probate or Letter of Administration or Distribution Order upon the takaful participant’s passing. Your heirs will be able to access takaful benefits quickly, enabling them to use the monies as they deem fit.

Shariah Court of the Federal Territory

What would happen if there is no nominee?

If there is no nominee appointed, the takaful benefits cannot be released until your heirs obtain a Grant of Probate or Letter of Administration or Distribution Order, which such process may take a long time to complete.

The takaful benefits will also be subjected to the deceased takaful participant’s debts where other debtors can claim from your family members.

Rules for a nominee

Conditions to nominate an Executor or Great Eastern Takaful Beneficiary

As a takaful participant, you can nominate anyone to receive your takaful benefits either as an Executor or Beneficiary under conditional hibah during the application or after the takaful certificate is issued to you. If necessary, you can also change your nominee designation at any time during the term of the certificate as long as you are still alive.

If you are 16 years old and above, you are free to name any individual, regardless of whether the individual is a family member or not, to receive the takaful benefits either as an Executor or Beneficiary under conditional hibah.

What about age?

If you have appointed a nominee as an Executor, the individual must be aged 18 and above. An Executor can be appointed among family members or friends and it is advisable to appoint an individual that you fully trust on handling the takaful benefits well on behalf of your heirs.

As for beneficiaries, there is no age limit set. However, if the beneficiary has not reached the age of 18, or unsound mind or incapable due to infirmity mind and body (we refer this as “incompetent nominee”), the takaful benefits will be given to the surviving parent of the nominee, proper claimant or trust company appointed by you, subject to the provisions under Schedule 10 of IFSA 2013. These are the people who will manage the takaful benefits on behalf of the incompetent nominee.

Are witnesses necessary for nomination?

Yes, a nomination must be witnessed by a person of sound mind and has reached the age of 18 who is not a nominee named by the takaful participant. 

Designate a nominee to receive the takaful benefits for hibah takaful plan

5 steps of appointing a nominee

1. Complete the nomination form

Download the Nomination Form from the i-Get In Touch portal and fill up the information required in the form. Kindly refer to the Appointment of Nominee(s) Guidelines for guidance in completing the nominee appointment application form.

You can appoint a nominee to receive the Takaful benefits that will be paid after your death under the Takaful Certificate, either as an Executor or a Beneficiary under conditional hibah, by specifying the details in the relevant section below.

2. State the percentage distribution

For naming a Beneficiary under a conditional hibah, you can name more than one individual by specifying a percentage distribution for each individual. For instance, you written down your wife and mother as Beneficiaries under a conditional hibah. You can divide the takaful benefits equally or you can also put the division according to the percentage you think is appropriate, for example 70% for the wife and 30% for the mother or vice versa

3. State your relationship

You should state your relationship with the nominee you appoint in the Nomination Form such as husband/wife, mother/father, child and so on.

4. Fill in the witness’ details

You can appoint anyone as the witness as long as these requirements are fulfilled:

  • Witness must not be the same person as the nominee;
  • Above the age of 18 years old; and
  • Sound mind

5. Submission of the nomination form

Once all the information required in the form is filled, you can send the Nomination Form online through i-Get In Touch portal. You can also check out the status of the nomination on the same portal.

Protect your family's future by taking a takaful plan today. Help them rebuild their lives after your loss by appointing your loved ones as a beneficiary under conditional Hibah, so that your loved ones can continue their lives comfortably without the burden of debt.

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