Nominations

Any Insured Person who has attained the age of 16 years may make a nomination.

Nomination ensures that your loved ones receive the protection you intended and allows insurers to pay out policy moneys without delay.

• If no nomination is made, the policy moneys will be paid to:
• your lawful executor (if you have a Will), or
• your lawful administrator (if no Will has been made).

This process may take time.

If there is no lawful executor or administrator, policy moneys will be paid to the rightful recipients in accordance with applicable distribution laws.

You may nominate any individual(s). However, not all nominations allow the nominee(s) to receive the policy moneys for their own use.

• The outcome of a nomination depends on:
• your marital status;
• who you nominate; and
• whether you are a Muslim or non-Muslim policy owner.

• For non-Muslim policy owners, nominations may result in either:
• a trust policy, or
• a non-trust policy.

To ensure your nominee(s) receive the policy moneys beneficially, a trust policy must be created.

• A trust policy is created when:
• the nominee is your spouse or child; or
• the nominee is your parent, provided there is no living spouse or child at the time of nomination.

If you nominate individuals other than your spouse, children, or parents, a non-trust policy is created.

• In this case, the nominee(s) will receive the policy moneys as executor only and must distribute them according to:
• your Will, or
• applicable distribution laws if there is no Will.

If you intend for such nominee(s) to receive the policy moneys for their own use, you must assign the policy benefits to them.

In short, if you nominate persons other than your spouse, children, or parents, consider assigning the policy benefits to avoid unintended outcomes. Please contact MSIG for further assistance.

Nominee: A person named in the policy to receive or administer the death benefit upon the demise of the Insured Person.

Beneficiary: A person entitled to receive and enjoy the policy benefits for their own use.

Executor: A person appointed to manage and distribute the estate, including policy moneys, in accordance with applicable laws.

For Muslim policy owners, nominee(s), regardless of their relationship to the Insured Person, may only receive the policy moneys as executor.

The policy moneys must be distributed in accordance with Islamic laws.

• Policy moneys and other assets will be distributed in accordance with applicable distribution laws:
• West Malaysia & Sarawak: Distribution Act 1958
• Sabah: Intestate Succession Ordinance 1960

The Distribution Act 1958 does not apply to Muslims in West Malaysia or natives in Sarawak.

• You may:
• download the PA Insurance Nomination Form for MSIG corporate website; or
• contact us to request a copy.

Please complete and return the original form to MSIG.

• The form must be:
• duly signed; and
• witnessed by a person aged 18 years and above, of sound mind, and not a named nominee.

Failure to meet these requirements may render the nomination invalid.

For detailed provisions, please refer to Schedule 10 of the Financial Services Act 2013.

Yes. Any existing nomination under a trust policy will be revoked upon submission of a new nomination.

To update your nomination, complete and submit a new PA Insurance Nomination Form. An endorsement will be issued to reflect the change.

If you have multiple nominees and one passes away before you, the deceased nominee’s share will be redistributed among the remaining nominees in proportion to their original shares.

Example:
Nominee C passed away. Nominee C’s 30% is redistributed among Nominee A and B in proportion to their existing shares.

A Trustee must act in the best interests of the nominees. Upon the demise of the Insured Person, the Trustee receives the policy moneys and distributes them to the nominees in accordance with the trust.

If you are a non-Muslim and name your spouse, child, or parent as nominee(s), it is recommended to appoint a Trustee.

The Trustee manages and distributes the policy moneys. The Trustee need not be a family member but should be someone you trust.

No. A Trustee may be appointed either at the time of application or at a later date.

• A Statutory Trust is created under Schedule 10 of the Financial Services Act 2013 when:
• the Insured Person is a non-Muslim at the time of nomination; and
• the nominee(s) fall within the categories prescribed under the Act, based on marital status.

In the absence of a Trustee appointed by the Insured Person, the nominee(s) above will be presumed to be the Trustee of the policy (“Statutory Trustee”). For easy reference, the trust created under Schedule 10 of the Financial Services Act 2013 will be known as “Statutory Trust” in this FAQS.

• If the nominee is under 18:
• the parent (other than the Insured Person) becomes the Statutory Trustee; or
• if unavailable, the Public Trustee (Amanah Raya Berhad) or a trust company nominated by the Insured Person will act as Trustee.

No. Under the Financial Services Act 2013, the Insured Person cannot appoint himself/herself as Trustee. This restriction applies only to appointments made after 30 June 2013.

• Please submit:
• a Certified True Copy of the Trustee’s Death Certificate; and
• a new PA Insurance Nomination Form.

You must obtain the written consent of the Trustee to carry out certain actions to an existing trust policy:

Changing nomination percentages for existing nominees under a trust policy does not require the Trustee’s consent. To update the allocation, you will have to complete the PA Insurance Nomination Form and submit it to us. We will process the necessary changes accordingly.

No consent is required from the trustee. You will have to complete the PA Insurance Nomination Form and submit it to us. We will process the necessary changes accordingly.

Yes, you can replace a Statutory Trustee at any time without needing the Statutory Trustee’s consent.