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Things You Should Know About Hibah Takaful


The benefits of Hibah Takaful is that you can directly appoint anyone you want to receive the compensation money 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 appointment under the Islamic Financial Services Act 2013 (“IFSA 2013”), in order to ensure your heirs receive the takaful benefits without going through the process for property inheritance.

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


Nominee As A Wasi (Executor) Or Beneficiary Under Islamic Financial Services Act 2013

When planning to participate in a Hibah Takaful plan, you have the rights to designate a Nominee to receive the takaful benefits as a Wasi or Beneficiary based on the concepts of conditional hibah.

What Is A Nominee?

A nominee is an individual chosen by takaful participants as the recipient or administrator of takaful benefits.

What Is A Wasi?

A Wasi is an individual/administrator appointed by takaful participants to manage and distribute takaful benefits to other parties in accordance with applicable laws relating to the division of the takaful participants’ inheritance.

What Is A Beneficiary?

A beneficiary is an individual named by takaful participants as recipients of takaful benefits under the conditional hibah based on the percentage specified in the nomination application. Takaful benefits will be excluded from the process of dividing assets and inheritance after the death of the takaful participant.


Why Is It Necessary To Have A Nominee?

Through a nominee, takaful benefits will be able to be distributed more quickly without the need to obtain a Probate Order or Administrative Power of Attorney or Distribution Order and your heirs will be able to access takaful benefits quickly.

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What Would Happen If There Is No Nominee?

If there’s no nominee appointed, the takaful benefits cannot be released until your heirs obtain a Probate Order or Power of Administration or Distribution Order, which may take a long time to complete.

The takaful benefits are also subject to any applicable laws (where other debtors can claim your family member's takaful benefit).


Rules For  A Nominee

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As a takaful participant, you can nominate anyone to receive your takaful benefits as a Wasi 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 as a Wasi or Beneficiary under conditional hibah.


What About Age?

If you have appointed a nominee as a Wasi, the individual must be aged 18 and above. A Wasi 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 not in the right mind, the takaful benefit will be given to the parents of the nominee/ eligible applicants/ unit trust holder / trust companies named by you who are subject to the provisions under Schedule 10 of APKI 2013. These are the people who will manage the takaful benefits on behalf of the Beneficiaries under conditional hibah who have not reached the age of 18 or are not in the right mind.


Are Witnesses Necessary For Nomination?

Yes, a nomination must be witnessed by a person who is in the right mind and has reached the age of 18, and must not be a nominee whether a Wasi or a Beneficiary under the conditional hibah who is named by you.

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5 Steps Of Appointing A Nominee


1. Complete The Nomination Form

Download the 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 Wasi, 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 With The Representative

You should state your relationship with the nominee you appoint in the nominee appointment application 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 are fulfilled:

  • Witness must not be the same person as the representative;
  • Aged 18 and above; and
  • Sane and has a good mental health condition as a Wasi or Benficiary under conditional hibah.


5. Submit The Representative Form

Once all the information required in the form is filled, you can send the nomination form online through the i-Get In Touch portal. You can also check out the status of the nomination application 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 an heir as a conditional Hibah grantee, so that their loved ones can continue their lives comfortably without the burden of debt.

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