Contemporary forms of hibah : a critical evaluation of the fatawa on central provident fund and insurance nominations in Singapore

Abstract

This study aims to evaluate the fatÉwÉ which were passed by the FatwÉ Committee of the Islamic Religious Council of Singapore which considered Central Provident Fund and Insurance nominations as contemporary forms of hibah. This study undertakes a comprehensive study of the concept of hibah in Islamic Jurisprudence, as well as the Central Provident Fund and Insurance nomination systems in Singapore. This is then followed by a critical evaluation of the bases and justifications of the fatÉwÉ issued by the FatwÉ Committee, as well as the responses to these fatÉwÉ. This study adopts a qualitative methodology which involves reviewing writings of classical and contemporary scholars from books, articles, and reliable websites, as well as conducting interview with scholars from the Islamic Religious Council of Singapore. This study concludes with the view that these two nomination systems are not exactly similar in terms of takyÊf fiqhÊ although both are placed under the category of nomination. This is due to the difference in the nature and contractual relationship of these two contracts. CPF nomination resembles the Islamic Will contract which encompasses both the wiÎÉyah (entrustment) and the waÎiyyah (bequest). As for revocable insurance nomination, its’ takyÊf fiqhÊ should be determined based on what is paid to the nominee upon death of the insured. None of the various categories of revocable insurance nomination are suitable to be considered as contemporary forms of hibah.