Distribution of takaful benefits under Malaysian law

Abstract

Generally, Takafiil is a form of protection that assures certain benefits to its participants. From one point of views, Takaful benefit is a financial aid paid to beneficiaries after the death of Takaful participants. This article aims to clarify the laws that govern the rules in distributing Takaftil benefits in Malaysia. This article directly details two methods that is adopted in distributing the Takaful benefits which are the first is the appointment of nominee as trustee and the second is giving to the nominee as a sole beneficiary. For that purpose, this study applies comparative analysis method in particular to examine the differences and similarities between Takafiil Act 1984 and Islamic Financial Services Act 2013. This study indicates that the implementation of Takafiil benefits distribution is better with the adoption of Islamic Financial Services Act 2013 than Takaful Act 1984. However, some technical issues such as the existence of Takaful benefit recipients and the obligatory for Al-Qabd (delivery), need to be refined to ensure the credibility of Takaftil benefits distribution from Islamic law perspectives.