Under Islamic law, the beneficiary in a takaful policy cannot be determined based on a nomination clause. A beneficiary must have an insurable interest in the policy and simultaneously be nominated by the participant in the policy. The current practice seems to recognise those who are entitled to the deceased’s estate as having a legitimate insurable interest, although this point is not clearly expressed in any regulation or guidelines. For further details see: ISRA, Islamic Financial System; Principles and Operations.
|Hibah In The Takaful Industry|