Parties in Takaful

Question 1

WHO ARE THE PARTIES IN TAKAFUL?

Answer 1

1. Takaful Participants
2. Takaful Operators
3. Nominee
4. Beneficiaries

Question 2

WHO IS TAKAFUL OPERATOR?

Answer 2

Takaful Operator is the one who collects the contributions and manages it on behalf of the participants in order to provide financial security to the members in the event of unexpected perils (pure risk).

Question 3

WHAT ARE THE CONDITIONS OF TAKAFUL OPERATOR?

Answer 3

1. Must have contractual capacity provided in the general principles of commercial contacts
2. Must get registered before the commencement of the operation
3. Able to maintain a surplus of assets over liabilities
4. An insurer must make a deposit before obtaining license for his operation

Question 4

WHO IS TAKAFUL PARTICIPANTS?

Answer 4

The participant pays regular contributions to the takaful fund for the purpose of future security of the subject matter at risk.

Question 5

WHAT ARE THE LEGAL CAPACITY OF THE TAKAFUL PARTICIPANTS?

Answer 5

1. Age
   
   • as early as 2 weeks but only with his parents or guardians’ consent
   • has a full capacity to takaful contract upon reaching the age of 16
2. Medical fitness
   
   • suffering from critical illnesses before subscribing
   • unsound mind
   • unable to manage his own affairs
   • dependent on others to survive
3. Legally Qualified
   
   • bankruptcy
4. Free
   
   • Imprisoned person
5. Authorized person
   
   • Not the owner of the property

Question 6

EXPLAIN BENEFICIARIES

Answer 6

• An ordinary & alive person
• Get the benefits after Takaful Participant dies
• Must have an insurable interest in the policy and simultaneously be nominated by the participant in takaful.
• If all the beneficiaries die, the money will be given to Amanah Raya Berhad which then will be distributed to other relatives through Faraid.
• If there are no beneficiaries nominated, money will be distributed through Faraid
• Conditional hibah: Participant can decide on the % to give to the beneficiaries, but must not exceed 1/3 of total wealth

Question 7

WHAT IS NOMINATION?

Answer 7

It is an act of naming a person to receive policy money payable in the event of death of the policy owner

The nomination should be witnessed by a person of sound mind who has attained the age of 18 years and is not a nominee.

Question 8

WHO IS NOMINEE?

Answer 8

A nominee is a trustee who is responsible to hand over (distributing) the property upon confirming the maturity of the minor.

Nominee can receive takaful benefits if the takaful participant made conditional hibah on him/her.

It can be anybody including family members, beneficiaries or non-beneficiaries.