The objectives of shariah in nomination for the payment of family takaful benefits

A family takaful certificate is subscribed by a takaful participant for the purpose of preparing financial support for his dependents after his death. The takaful benefits could then be made payable to a nominee named as the beneficiary under conditional hibah. In this respect, the participant is fr...

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Bibliographic Details
Main Authors:	Salleh, Safinar, Halim, Akmal Hidayah, Ibrahim, Uzaimah, Abdullah, Mohamad Asmadi
Other Authors:	Oseni, Umar A.
Format:	Book Chapter
Language:	English
Published:	Emerald Publishing Limited 2019
Subjects:	KBP173.25 Islamic law and other disciplines or subjects
Online Access:	http://irep.iium.edu.my/75179/ http://irep.iium.edu.my/75179/ http://irep.iium.edu.my/75179/1/75179_The%20objectives%20of%20shariah%20in%20nomination.pdf

id	iium-75179
recordtype	eprints
spelling	iium-751792020-01-23T08:02:52Z http://irep.iium.edu.my/75179/ The objectives of shariah in nomination for the payment of family takaful benefits Salleh, Safinar Halim, Akmal Hidayah Ibrahim, Uzaimah Abdullah, Mohamad Asmadi KBP173.25 Islamic law and other disciplines or subjects A family takaful certificate is subscribed by a takaful participant for the purpose of preparing financial support for his dependents after his death. The takaful benefits could then be made payable to a nominee named as the beneficiary under conditional hibah. In this respect, the participant is free to decide to whom the benefits are to be given since the law is silent as to the criteria of the beneficiary. This situation gives rise to the issue on whether such practice fulfils the objectives of Shariah, especially when the nominated beneficiary is not the sole dependent of the deceased participant. Therefore, this research aims to evaluate the status of family takaful benefits; to analyse the rules of conditional hibah from the Shariah perspective and to propose solutions whenever necessary. The research adopts doctrinal analysis by examining existing primary and secondary materials including statutory provisions and other legal and non-legal literature. The study predicates that the application of conditional hibah to the whole benefits does not reflect the objectives of Shariah if determination on the status of the benefits is solely based on the nomination made by the participant. It is observed that takaful benefits payable from the Participant’s Account (PA) should be considered as the deceased’s estate and must be distributed according to fara’id. Conversely, the sum covered payable from the Participant’s Special Account (PSA) may be paid to the deceased’s dependents whose criteria are determined by the Shariah Advisory Council (SAC) as the highest authority in Islamic financial matters. Emerald Publishing Limited Oseni, Umar A. Hassan, M. Kabir Hassan, Rusni 2019-08-26 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/75179/1/75179_The%20objectives%20of%20shariah%20in%20nomination.pdf Salleh, Safinar and Halim, Akmal Hidayah and Ibrahim, Uzaimah and Abdullah, Mohamad Asmadi (2019) The objectives of shariah in nomination for the payment of family takaful benefits. In: Emerging Issues in Islamic Finance: Law and Practice in Malaysia. Emerald Publishing Limited, Bingley, UK, pp. 33-52. ISBN 978-1-78973-546-8 https://books.emeraldinsight.com/page/detail/Emerging-Issues-in-Islamic-Finance-Law-and-Practice-in-Malaysia/?k=9781789735468
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	KBP173.25 Islamic law and other disciplines or subjects
spellingShingle	KBP173.25 Islamic law and other disciplines or subjects Salleh, Safinar Halim, Akmal Hidayah Ibrahim, Uzaimah Abdullah, Mohamad Asmadi The objectives of shariah in nomination for the payment of family takaful benefits
description	A family takaful certificate is subscribed by a takaful participant for the purpose of preparing financial support for his dependents after his death. The takaful benefits could then be made payable to a nominee named as the beneficiary under conditional hibah. In this respect, the participant is free to decide to whom the benefits are to be given since the law is silent as to the criteria of the beneficiary. This situation gives rise to the issue on whether such practice fulfils the objectives of Shariah, especially when the nominated beneficiary is not the sole dependent of the deceased participant. Therefore, this research aims to evaluate the status of family takaful benefits; to analyse the rules of conditional hibah from the Shariah perspective and to propose solutions whenever necessary. The research adopts doctrinal analysis by examining existing primary and secondary materials including statutory provisions and other legal and non-legal literature. The study predicates that the application of conditional hibah to the whole benefits does not reflect the objectives of Shariah if determination on the status of the benefits is solely based on the nomination made by the participant. It is observed that takaful benefits payable from the Participant’s Account (PA) should be considered as the deceased’s estate and must be distributed according to fara’id. Conversely, the sum covered payable from the Participant’s Special Account (PSA) may be paid to the deceased’s dependents whose criteria are determined by the Shariah Advisory Council (SAC) as the highest authority in Islamic financial matters.
author2	Oseni, Umar A.
author_facet	Oseni, Umar A. Salleh, Safinar Halim, Akmal Hidayah Ibrahim, Uzaimah Abdullah, Mohamad Asmadi
format	Book Chapter
author	Salleh, Safinar Halim, Akmal Hidayah Ibrahim, Uzaimah Abdullah, Mohamad Asmadi
author_sort	Salleh, Safinar
title	The objectives of shariah in nomination for the payment of family takaful benefits
title_short	The objectives of shariah in nomination for the payment of family takaful benefits
title_full	The objectives of shariah in nomination for the payment of family takaful benefits
title_fullStr	The objectives of shariah in nomination for the payment of family takaful benefits
title_full_unstemmed	The objectives of shariah in nomination for the payment of family takaful benefits
title_sort	objectives of shariah in nomination for the payment of family takaful benefits
publisher	Emerald Publishing Limited
publishDate	2019
url	http://irep.iium.edu.my/75179/ http://irep.iium.edu.my/75179/ http://irep.iium.edu.my/75179/1/75179_The%20objectives%20of%20shariah%20in%20nomination.pdf
first_indexed	2023-09-18T21:46:22Z
last_indexed	2023-09-18T21:46:22Z
_version_	1777413476580327424

The objectives of shariah in nomination for the payment of family takaful benefits

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