Malaysia legislation
Section 97
of LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010
Section 97
(a)
the nominee is his spouse or child; or
(b)
where there is no spouse or child living at the time of nomination, the nominee is his parent.
(2)
A payment under subsection (1) shall not form part of the estate of the deceased policy owner or be subject to his debts.
(3)
The policy owner, by the policy, or by a notice in writing to the Labuan takaful operator, may appoint trustees of the policy money and where there is no trustee—
(a)
the nominee who is competent to contract; or
(b)
where the nominee is incompetent to contract, the parent of the incompetent nominee and where there is no surviving parent, the Public Trustee, shall be the trustee of the policy monies and the receipt of a trustee shall be a discharge to the Labuan takaful operator for all liability in respect of the policy monies paid to the trustee.
(4)
A policy owner shall not deal with a policy to which subsection (1) applies by revoking a nomination under the policy, by varying or surrendering the policy, or by assigning or pledging the policy as security, without the written consent of the trustee.
(5)
Nothing in this section shall prejudice a creditor of a policy owner from applying to the court for a declaration that this section, wholly or partly, is inapplicable to any particular policy on the ground that the premiums under that policy were paid to defraud the creditor.
Act 705
Nominee other than a nominee under section 97