With effect from 1st Sep 09, there is an amendment under the Insurance Act which will enable policyholders of life or personal accident insurance policies to nominate beneficiaries under their insurance policies. Making a nomination is not compulsory. However, it provides you with a choice to distribute your insurance proceeds to your beneficiaries.
Basically, there will be 2 types of nominations. Firstly is the Trust Nomination, this takes effect when the nomination is made to the policy owner's spouse or children. Once nomination is made, the nomination is irrevocable, aka NO more changes! For all Muslim friends, according to the Muslim Law, you will only be able to make Trust Nomination.
Secondly is the Revocable Nomination, this takes affect when the nomination is made to a third party other than spouse or children, e.g. charity, relatives, company, etc. Such a nomination can be changed anytime.
For further details, you may refer to the pdf guide released by LIA, NOB Guide Sep09
Do contact your respective agents if you would like to make a nomination today (:
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