Labuan Islamic Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part VII · Labuan Takaful Business and Labuan Takaful Related Activities
94. Power to make nomination
Feedback & supportA policy owner who has attained the age of eighteen years may nominate a natural person to receive policy monies payable upon his death under the policy by notifying the Labuan takaful operator in writing of the name, date of birth, identity card number or birth certificate number and address of the nominee at the time the policy is issued.
Where a nomination is made after the policy is issued, the policy owner shall submit the policy together with the particulars of the nominee mentioned in subsection (1) for the Labuan takaful operator’s endorsement of the nomination on the policy.
policy
“policy” means a takaful certificate and any reference to a policy of a Labuan takaful operator and includes a reference to any policy in respect of which the Labuan takaful operator is under any liability, whether the policy was issued by the Labuan takaful operator or the liability was transferred to the Labuan takaful operator from another takaful operator;
A nomination made under subsection (1) shall be witnessed by a person of sound mind who has attained the age of eighteen years and who is not a nominee named under that subsection.
The Labuan takaful operator—
Labuan takaful operator
“Labuan takaful operator” means a person who is licensed to carry on Labuan takaful business;
shall prominently display in the nomination form a notice that the policy owner has to assign the policy benefits to his nominee if his intention is for his nominee, other than his spouse, child or parent, to receive the policy benefits beneficially and not as an executor;
shall record the nomination and the particulars of the nominee in its register of policies; and
shall register in its register of policies the nomination made under subsection (1) and such nomination shall take effect from the date the nomination is registered.
A failure to comply with subsection (4) shall affect the validity of the nomination unless otherwise proven that the necessary notification of the nomination was made by the policy owner and given to the Labuan takaful operator for endorsement on the policy.
A nomination made under subsection (1) may be in favour of one person or several persons and where there is more than one person nominated, the policy owner may direct that specified shares be paid to the persons nominated and in the absence of direction by the policy owner, the Labuan takaful operator shall pay such persons in equal shares.