SELECTED ISSUES ON ENGLISH LAW OF NOMINEES AND ASSIGNEES OF LIFE INSURANCE POLICY: A COMPARISON WITH SHARIAH

Abstract

This is a doctrinal and comparative research between nominees and assignees of life insurance policy and family takaful. The study aims to compare between life insurance under the English law and family takaful of the Shariah specifically on nominees and assignees to see similarities and dissimilarities between them. Some of the findings under the English law reveal that a person who has no insurable interest may benefit from an insurance based on trust and assignment. Also, insurable interest is only required at the time the policy is taken out and the names of those interested must be inserted while taking out the policy. Moreover, the assignee is entitled to enforce the policy as against the company, provided of course that some formalities have been duly complied with. And under the Policies of Assurance Act 1867, it is necessary to give notice to the insurer that the policy has been assigned. On the other hand, under family takaful, the preferred view by the researchers is that one’s insurable interest over a policy is determined based on the principles of al-Milkiyah (ownership), al-mirath (inheritance), alWasiyah (bequest) and debt and that policy benefits cannot be assigned as a gift (alhibah).Again, where benefits are used as collateral, the assignor should bear the cost to be spent in the interest of the subject matter on the basis that he is the owner; and this should include payment of the premiums of the life policy as under Shariah, the jurists are unanimous that the cost of collateral is on the assignor