Malaysia legislation
Section 100
of LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010
Section 100
(2)
Subject to subsection (1), the Labuan takaful operator may pay to the policy owner’s spouse, child or parent in that order of priority and where there is more than one spouse, child or parent, in equal shares to each person of that class and where there is no spouse, child or parent and—
(a)
where the policy monies do not exceed one hundred thousand ringgit or its equivalent in foreign currency or such greater amount or denomination as may be specified, the Labuan takaful operator may pay all that policy monies without requiring the Grant of Probate,
Letters of Administration or Distribution Order—
(i)
to a person who satisfies the Labuan takaful operator to be entitled and likely to be given the Grant of Probate, Letters of Administration or Distribution Order; or
(ii)
to a person who satisfies the Labuan takaful operator to be beneficially entitled to the estate of thedeceased policy owner; or
(b)
where the policy monies are more than one hundred thousand ringgit or its equivalent in foreign currency, or such greater amount or denomination as may be specified, the Labuan takaful operator may pay to the person referred to in subparagraph (a)(i) or (ii) the amount referred to in that paragraph and subject to subsection (6), pay to that person the balance of the policy monies upon production of the Grant of Probate,
Letters of Administration or Distribution Order.
(3)
In this section, a reference to policy monies is a reference to the aggregate amount of policy monies in respect of all policies of the policy owner with that Labuan takaful operator where there is no nomination.
(4)
The Grant of Probate, Letters of Administration or Distribution
Order granted or having effect as if granted, in respect of the personal estate comprising the policy monies, by a court in Malaysia or a competent authority outside Malaysia, or its certified copy shall be sufficient proof to the Labuan takaful operator to pay the policy monies to the person to whom the grant was made.
Act 705
(5)
The Labuan takaful operator may accept the Grant of
Probate, Letters of Administration or Distribution Order or any other document having the same effect, granted by a court in
Malaysia or a competent authority outside Malaysia, as sufficient proof to pay the policy monies of the deceased policy owner to the person to whom the grant was made, provided that such Grant of
Probate, Letters of Administration or Distribution Order or other document having the same effect has been duly registered with the court in Malaysia and sealed in accordance with the Probate and Administration Act 1959 [Act 97].
(6)
Where, upon the expiry of twelve months after a payment under paragraph (2)(b) has been made by a Labuan takaful operator, a balance of the policy monies still remains payable and no claim has been made by a person who holds a Grant of
Probate, Letters of Administration or Distribution Order, the Labuan takaful operator shall pay the balance of the policy monies to the person who received the initial payment of the policy monies.
(7)
Policy monies paid under this section shall be deemed to have been duly paid and the Labuan takaful operator shall be discharged from liability in respect of the policy monies so paid notwithstanding the absence or invalidity of, or any defect in, the Grant of Probate, Letters of Administration or Distribution
Order or any other document having the same effect.
(8)
A person to whom a payment may be made under this section shall give a receipt which shall be deemed to be a valid receipt.
Payment to person incompetent to contract