MSIG is now part of the Perlindungan Tenang initiative through our Mini Personal Accident Insurance. Started by Bank Negara Malaysia (BNM), this initiative aims to provide affordable insurance products for all so that no one gets left behind and has basic security against unfortunate events. With Perlindungan Tenang, you can now easily purchase an affordable and easy-to-understand protection plan, with a simple claim process, and an exemption of RM10 stamp duty until 31 December 2020.
We understand that you may have plans and activities in your daily life. That’s why we go above and beyond with MSIG Mini Personal Accident Plan offering basic personal accident coverage to provide financial assistance for disability or death caused by accidental means. With very affordable premiums as low as RM13 per year, it will fit any budget, ready to help you and your loved ones in the event of an accident. At MSIG, you are at the heart of all we do.
Nomination is important to ensure that your loved ones get the protection that you intended.
To assist you in understanding ‘Nomination’, we have come up with simple FAQs below.
1. Why do I have to nominate?
Nomination is important to ensure that your loved ones will receive the protection as intended by you and that policy moneys may be paid out by insurers without any delay. Where no nomination is made, the policy moneys will be paid out to your lawful executor (if you have made a Will) or your lawful administrator (if no Will has been made) – this process will take a while.
*If there is no lawful executor or administrator, then the policy moneys will be paid out to the rightful persons in accordance with applicable distribution laws.
2. Who can I nominate?
You can nominate any individual(s) you want. HOWEVER, not all nominees will receive the policy moneys beneficially or for their own use. Depending on your marital status and who you nominate, nominations may produce unexpected results for the nominee(s). Likewise, nominations by a Muslim policy owner and non-Muslim policy owner will have different consequences.
Nominations made by a non-Muslim policy owner will create either (i) a trust policy in favour of the nominee(s) or (ii) a non-trust policy.
To ensure that your nominee(s) receive the policy moneys as intended, you need to ensure that a trust policy is created in favour of your nominee(s).
3. How do you create a trust policy?
Trust policy will be created:
(a) if the nominee is your spouse or child; or
(b) if the nominee is your parent (provided that there is no living spouse or child at the time you make the nomination).
4. What if I nominate someone else as my nominee(s)?
In such as case, you are creating a non-trust policy. Here, your nominee will only receive the policy moneys as executor and distribute the policy moneys in accordance with your Will or where there is no Will, in accordance with applicable distribution laws. If you intend for these nominee(s) to receive the policy moneys beneficially and not as executor, you will need to assign the policy benefits to them.
In brief, if you nominate people other than your spouse, children or parents, make sure to assign the policy benefits to them to ensure that they receive the policy moneys for their own use. Please contact MSIG if you require more information on this.
5. What about Muslim policy owner?
Nominee(s) irrespective of the relationship with the policy owner can only receive the policy moneys as executor and the policy moneys must be distributed in accordance with Islamic laws.
6. I did not make any nomination and Will. How will the policy moneys be distributed?
The policy moneys as well as your other assets will be distributed in accordance with applicable distribution laws.
For West Malaysia and Sarawak, the Distribution Act 1958 applies, where the policy moneys and assets will be divided between your surviving spouse, children and parent(s) in certain proportions.
The Distribution Act 1958 is however not applicable to Muslims in West Malaysia and natives in Sarawak. For Sabah, policy moneys and assets will be distributed in accordance with the Intestate Succession Ordinance 1960.
7. How do I make a nomination?
It is easy to make a nomination. You can download the PA Insurance Nomination Form provided in this website or you may contact us and request for a copy. Complete and return the original PA Insurance Nomination Form to MSIG for our further action – you may wish to refer to the sample completed form for reference.
Please make sure that the form is duly signed and witnessed by someone who is 18 years old and above, of sound mind and not a named nominee, failing which the nomination may be deemed invalid.
*The FAQs are provided for general information only. For detailed provisions on nomination, please refer to Schedule 10 of Financial Services Act 2013.
To download a copy of the Personal Accident Insurance Nomination Form, please click on the link below.
8. Can I being the insured revoke the nomination made earlier in my trust policy?
Yes, you can revoke the nomination under your trust policy but under the law you must obtain the written consent of the trustee before the revocation can be valid. (Refer to explanation in question 3 above). Hence, if you wish to revoke the nomination, you may download the Consent Form provided by us through the link below for completion. After the submission of the completed Consent Form and new Nomination Form to us, we will pass an endorsement for a change of nominee to your trust policy.