FATWA DAN FUNGSINYA

THE OBJECTIVE OF SHARI’AH: (MAQASHID SHARI’AH) IN INHERITANCE: ANALYSIS OF INSURANCE NOMINATION PRACTICES IN SINGAPORE Suhaimi Mustar Nasrul Hisyam Nor Muhamad ABSTRACT Many researches have been done to explain the role of maqasid Shari'ah in inheritance. Although the literature covers a wide variety of such frameworks, this review will focus on five major themes which emerge repeatedly throughout the literature reviewed. These themes are: maqasid Shari'ah, social responsibility in inheritance in Islam, insurance nomination and it's relation to the theory of the maqashid, wealth protection, fair and transparency is an essential component of the Islamic inheritance management. Although the literature represents these themes, this paper will primarily focus on the application of maqashid in insurance nomination practices in Singapore context for the wellbeing of the community and the Ummah, paving the way to achieve the righteous Islamic purpose. Keywords: Maqasid Shari’ah, Inheritance, Nomination, Insurance, Islamic law. ABSTRAK Banyak kajian telah dilakukan untuk menjelaskan peranan maqasid Syari'ah dalam pusaka. Walaupun kesusasteraan merangkumi pelbagai rangka kerja, kajian ini akan memberi tumpuan kepada lima tema utama yang muncul berulang kali sepanjang kajian dilakukan. Tema ini adalah: maqashid Shari'ah, tanggungjawab sosial dalam pewarisan Islam, nominasi insurans dan hubungannya dengan teori maqasid, perlindungan kekayaan, adil dan ketelusan adalah komponen penting dalam pengurusan harta pusaka Islam. Walaupun kajian meakili tema ini, namun tumpuan utama kertas ini kepada aplikasi maqashi dalam amalan nominasi insurans mengikut konteks Singapura demi kesejahteraan masyarakat dan ummah bagi membuka jalan untuk mencapai tujuan Islam yang benar. Kata Kunci: Maqasid Shari’ah, Pewarisan, Nominasi, Insurans, Undang-Undang Islam. 1. INTRODUCTION This article will focus on five main sections, beginning with a brief explanation of maqasid Shari'ah based on Islamic scholar views from past and present as quoted from the al-Quran. The next section discusses the assimilation between the objective of Shari’ah and ijtihad in every Islamic law especially in the financial management. The following section touches on the practical aspect of the insurance nomination practices in Singapore where there is a clash between civil law and Islamic law. Finally, this article analyses the legal ruling (fatwa) issued by the Fatwa Committee on the insurance nomination which aims to find solutions for the Muslim community, followed by the conclusion that explains the link between maqashid, inheritance law and insurance nomination as well as suggestions that can lead to further research development in the future. 2. MAQASID SHARI’AH 2.1 Definition of Maqasid Like the past scholars, the present ones are also trying to define Maqasid Shari'ah. According to al-Qaradawi: It is the "Ruling of Allah and His Messenger, as outlined in the al-Quran and the al-Sunnah" (al-Qaradawi, 2007: 16-22). Whilst according to al-Shatibi, the "Duty of implementing Shari'ah responsibility is back to the ultimate goal of preserving the Shari'ah law on humans, the objective of Shari'ah is to take care of three principles, in emergency (dharuriyyah), necessity (hajiyyah), and luxury (tahsiniyyah) "(al-Shatibi, 1997. 2:22, 267). Al-Ghazali, Ibn Hajib and al-Shatibi define dharuriyyah as safeguard and preserve the five basics, the religion (din), life (nafs), intellect ('aql), wealth (mal) and descent (nasab) (al-Ghazali 1993: 1/172; Majma 'Fiqh al-Islami, 1998. bills 11. 2). Hajiyyah refers to the elements of support to the basic human needs, which aims to eliminate the difficulties and simplify the lives of people in this world. The absence of hajiyyah does not affect human life, but it is needed to help ease daily life activities, such as the use of transport for commuting from one place to another and the use of certain contracts like al-Salam that helps ease the process of buying and selling in daily life. Finally, tahsiniyyat is an additional requirement. It is used to complement human needs. For example, beautifying, improving and refining additional needs without causing harm, like eating delicious food and wearing beautiful clothes (al-Shatibi, op.cit, 2:325). 2.2 The Definition of Maqasid Shari’ah Maqasid Syariah in muamalat activities which require transactions such as economy and insurance needs to look at the general objective of the Islamic law, that is to preserve the interests of all human beings and protect them from harm (Ibn al-Qayyim, 1973, 3:3). Because, it is a basic human need to achieve well-being in this world and the hereafter. As stated by al-Ghazali: "Preventing the loss of the five basic (motion) and protecting it cannot be ignored in any religion (millah) or legal system (Shari’ah), which meant for the goodness and the betterment of man" (al -Ghazali, 1993: 1: 417), which also includes the worship (ibadat), transactions (muamalat), customs (‘adat) and Jinayat (al-Shatibi, op, cit, 2: 18-20). If we examine the difference in the definitions given by the scholars as mentioned earlier, we will find that the most accurate and concise definition covers the whole concept of Maqasid, which is the definition given by al-Raisuni. In conclusion, maqasid Shari'ah refers to "the goals to be achieved by the laws in the interest of humanity." Therefore, the objectives of the Islamic Law contain all aspects of human life, including economic prosperity and social justice, to get the blessing of Almighty God (al-Raisuni, 1992:15). 3. MAQASID SHARI’AH AND IJTIHAD IN FINANCIAL MANAGEMENT 3.1 The Position of Maqasid in Ijtihad The majority of the Islamic scholars deduced that the Shari’ah law is full of wisdom and it has its own objective which revolves around protecting human interests and to achieve the betterment of this world and in the hereafter (al-Misawi, 1998: 82). Upon close observation, there seems to be a close relation between Shari’ah law and maqasid. Thus, in the process of understanding the law, a Faqih must not only understand the legal arguments, but needs to also look in depth the way law is implemented from the maqasid aspect. One of the evidence that reinforced the status of maqasid as a legal source (hujjah) apart from al-Quran and al-Sunnah is ijtihad. During the time of the companions, maqasid shari’ah concept was applied in every ijtihad they did (al-Qaradawi, 1997:232). However, during the time of the Prophet s.a.w. many new issues did not have legal evidence (nas), therefore injunctions were raised from the passage of development and modernization of time (Nuruddin Mukhtar, 1998: 92). According to Ahmad bin Hanbal, the companions’ acts derived from their understanding of maqashid shari’ah such as their ijtihad of compiling the Holy Quran together in a Mashaf, having three in a pronouncement of talaq and not dividing the wealth gained from war to land troops. (Ibid: 96). Similarly, in the time of Tabi'in, they inherit the practicality of taking into account the objectives of Islamic law that revolves around the acceptance of good and opposing the bad (Abdul Karim Zaidan, 1990: 114). 3.2 Approaches and Conditions of Ijtihad This particular approach has been practiced from the time of Imam Mujtahid up till today, as certified by the majority of Usul and Furu’ scholars. Especially so when Usul scholars have put forth that for a mujtahid to exercise ijtihad, he must be knowledgeable about maqasid syar'iyyah. In addition to that, the interpretation of lateral passages alone without looking at the maqasid shari'ah clashes with the tasyri' characteristics itself (al-Duraini, 1997: 49). Al-Imam al-Shafi`e considered maqasid shari'ah as a method of ijtihad when there is no injunction (nas) from the al-Quran, al-Sunnah or Hadith ahad. If neither general nor public interest (maslahah) are involved, Al-Imam al-Shafi`e will move to the source of al-Ijma'. Al-Imam al-Ghazali also takes into account the maslahah aspect if there are signs that it is maqashid syara’ (al-Ghazali, 1400: 355). Al-Imam al-Syatibi is more assertive in this matter to the extent that he would describe a mujtahid who neglects the terms of maqasid shara' as an act of deviation from religion (al-Shatibi, op.cit, 4: 170). According to ‘Ilal al-Fasi, the role of maqasid shara’ is not limited to cases that are not stated in the al-Quran (nas), but in fact goes beyond the laws stated in the Quran, like in the case of a delayed hudud by 'Umar for theft during the year of hunger. Ibn 'Assyrians also reinforced the importance of understanding maqasid in the process of doing ijtihad according to the following guidelines: a) Understanding of text literally and technically. b) Focusing on text that is nasakh, taqyid, takhsis or other text that are deemed more valid. c) Recognizing exceptional cause of law and practicing qiyas on it. d) Deciding on a law that is not derived by using qiyas e) Enforcing law of ta'abbudi as it is. According to Dr. Yusuf Hamid al-Alim, "Understanding Maqasid Syariah is not only important for a mujtahid but it is also important for all mukallaf so that their actions in getting their needs are aligned with the shara’". (Yusuf Hamid, 1991: 106). 3.3 Maqasid in Every Law The explanation on the position of the maqasid shari’ah in every shari’ah law enforced and the role of ijtihad in some issues without valid or specific text from the revelation has strengthened the role of maqasid. Many societal issues need religious attention and answer according to syara’. This is due to life matters that are getting more complicated and the society that is progressing in terms of intellect, behaviour and socio-cultural, as well as the rapid development of communication systems and information technology (al-Qaradawi, 1408). Based on this fact, there is high demand for the need of ijtihad in financial management especially in Singapore, together with the wider scope of property management that can be categorised as inheritance, in consistent with changes in lifestyle, community income source, and localities of Muslim community as well as socio-economic. The difference in terms of locality leads to differing needs, therefore a need for multiple laws to meet the various necessities. In the context of property inheritance, a new ijtihad is required to address the issues of inheritance that are probably different in Singapore compared to those in Malaysia. Therefore, when a property distribution method is certified valid by the authoritative fatwa institution in Singapore, a decision will be made after assessing the needs of the society in the country. This is actually in line with the objective of Islamic Law (maqashid Shari'ah) in determining a law to achieve well-being and avoid harm from occurring, as long as they do not contradict with the original text (Qat'i) (al-Shatibi, op . cit, 2: 3-4). 3.4 Ijtihad Approaches Ijtihad can be done by the official institution using either one of the three available methods. One of which is the method of choosing the strongest jurists views from the well-known sects, next is to judge based on the strong evidences and the objective of shari’ah in general and lastly, by issuing a new law that has never been discussed by the jurists of the past based on Islamic evidences (al-Qaradawi, 1396H). Therefore, ijtihad and Maqasid Shari'ah cannot be separated because ijtihad according to al-Amidi, is an act of devoting full effort in producing Islamic law that has an uncertain nature (Zanni) until one feels like no more can be done with it (al-Amidi, 2003. 4: 218). In other words, a conscious effort to produce the highest perfection possible in resolving a matter, while the objective of the sharia’ is to improve the well being of the human being in this world and the hereafter as well as in the field of inheritance in any form. Ijtihad over property issues must not only focus on the analysis of texts (nas) and the laws of classical fiqh (fiqh turath) alone. For example, the issue of nuzriah that is endorsed by the Fatwa Committee and adopted by the majority of the Muslim community in managing inheritance in Singapore refers to the actual application of maqashid shari’ah (MJF 5 2007-2010). 4. MAQASID SHARI’AH AND INSURANCE NOMINATION 4.1 Insurance and Needs Insurance and the variety of its products is part of the financial activities that needs to be properly managed and can be part of property inheritance. It can be categorized in muamalat hajiyyat; elements that support the basic needs to meet the shari’ah objectives in lifestyle. For example, health insurance or life insurance today is regarded as a necessity even if it is not obligatory. For many people living in developed countries such as Singapore, the high cost of living such as health care in the country encourages people to purchase various types of insurance products for protection of self and family in case calamity occurs. Therefore, new ijtihad is required by local scholars to explain and designate the laws of buying and nominating in insurance so that people do not practice illegal transaction that are not in accordance with the objective of shari'ah. Thus, the goal and aspirations behind the practice of insurance nomination in Singapore is to help heirs achieve happiness in this world and hereafter, to guarantee financial and health compensation as well as reduce risks of riba '(interest), maysir (gambling) and gharar (uncertainty). If we examined in depth, we will find that there is an integrated link between the objectives of shari’ah and the insurance nomination policy. 4.2 Scholars Opinion about Insurance Scholars differ in their opinions about the Islamic ruling participate in an insurance scheme. Some scholars agree that some of the insurance schemes available are permitted in Islam based on the needs of the community (Majma 'Fiqh al-Islami, 1985. Bills. 9.2). However, other scholars disagree because they believe that these schemes contain elements like syubhah (ambiguity) and gharar (uncertainty), be it in fundraising or investment mode etc. (Majma 'Fiqh al-Islami, 1985). However, the Fatwa Committee takes into consideration the changing economic and demographic conditions that encourage a person to plan his/her finance, for the coming age or for the future needs of his/her family. Due to limited investment options for people with low or average incomes, some have chosen to do their financial planning in the form of insurance. Therefore, the Fatwa Committee of the opinion that every Muslim who wants to participate in any insurance scheme is responsible for choosing the scheme that meets shari’ah compliance based on the views of trusted scholars (Soal Jawab Agama, 2012: 9). 4.3 Maqasid for Well-being By recognizing that maqasid Syari’ah serves to protect human welfare in this world and hereafter, and that it includes religious activities and transactions as well as inheritance, therefore maqasid Syari’ah in insurance nomination allows the Syari’ah objective to achieve well-being and avoid harm from occurring in the worldly life and the heareafter. Owning an insurance policy is seen as crucial for a majority of Singaporeans due to factors mentioned above and buying of insurance is closely related to the inheritance issue when policyholder dies. This issue will be discussed in the next section. 5. ANALYSIS FATWA OF INSURANCE NOMINATION 5.1 Sequence of Decree in Insurance Nomination Before the decree is further analysed, it is to be made clear that the insurance issue has been discussed by the Fatwa Committee (JKF), Islamic Religious Council of Singapore (MUIS) since 1971. Since then, a number of decrees had been issued between 1971 and 2012. The sequences are as follows: a) Fatwa 1971: Fatwa 1971 stressed that the money earned from compensation is considered as the inheritance (MJF 25/26 27.4. 1971). Whereas the nominee in the insurance and CPF nomination policy serves as a representative/trustee only (MJF32. 10/30/1971). b) Fatwa 1998: An answer similar to the decree made in 1971 was given by JKF with regards to the status of Estet al-Marhum (Muhammad Rizal bin Yusof) insurance compensation (MJF, 08/03/1998) and the status of nominee in Estet al-Marhum (Ramlan bin Hasan) ( MJF, 16/11/1998). That is, the compensation is considered as (tarikah) and nominee as a trustee. c) Fatwa 2007: Fatwa 2007 stipulates that revocable nomination (nomination can be cancelled) is not allowed whereas irrevocable nomination (nomination shall be irrevocable) is allowed (MJF, 2007). The two types of nominations are briefly described as follows: i. Nomination trust (irrevocable): It is a nomination whereby policyholders lose ownership of any returns. All return benefits, (life benefits) or (death benefits) are given to the nominee. Any cancellation of nomination by policy holder requires consent by nominee or trustee. ii. Revocable nomination: It is a nomination whereby policyholders still have full rights to make any changes or cancellation to the nomination and returns for as long as the nominee is alive. Life returns (life benefits) will be given to policyholders but only death returns (death benefits) will be given to the nominee. This issue had received widespread coverage in local newspaper (The Straits Times of Singapore, 7 April 2011). d) Fatwa 2012: In 2012, the Fatwa Committee reviewed the decree on revocable Nomination and issued a new decree that law of insurance and CPF nomination of a similar kind is allowed (MJF, 13, on 2 February 2012) despite it not being permissible previously. 5.2 The Need for Nomination in Life Neither revocable nomination nor CPF insurance was recognized by the previous decree as a form of grant in 2007. JKF considered the nominee in insurance as a medium that can fulfil the needs of those who would like to give a portion of their insurance money to the needy. For this reason, a decree was issued in 2007, allowing the execution of insurance only in the form of irrevocable nomination only (MJF, 2007). However, in September 2009 an amendment was made to the Insurance Act in 2010 that allows insurance holders to make revocable nomination. However, if a person commits nomination of the husband / wife or his children for an insurance plan that has death benefits, the nomination automatically becomes irrevocable and cannot be withdrawn by the holder of an insurance policy in accordance with Section 73 of the Act (CLPA, 2009). Due to this amendment, a consequential amendment was also applied to the Administration of Muslim Law Act (AMLA) under section 111. Among other matters stipulates that a Muslim who lives in Singapore is not allowed to make any form of revocable insurance nomination unless it follows the madzhab fiqh. AMLA Amendment is done based on the initial verdict JKF 2007. Consequently, local insurance companies requested that Muslim insurance policyholders consult MUIS before making a revocable nomination. Previously there was no special provision for coordinated management nomination insurance plan. Any nominations made previously were only subjected to the provisions of the Conveyancing and Law of Property Act (CLPA, 1994) and Co-operative Societies Act (CSA, 1979). 5.3 Factors of re-evaluating Fatwa There are several key factors causing JKF to review of insurance nomination decree that was issued in 2007. One of which was due to unique and constantly changing conditions of families and individual Muslim that requires careful planning and distribution of wealth, the limitations of the irrevocable nomination (trust), and the new law that allows the insurance plan holders to have the option of not making any nomination. There are certain conditions that require individuals to do the nomination, like those who have no heirs or who have dependents other than their spouse and children like parents or adopted child. Some even bear children who are physically or mentally handicapped, or those suffering from chronic diseases that require long-term treatment. For these individuals, limitations of the nomination of trust do not provide a solution for them to overcome the difficulties they faced. Nomination trust can only be done for the children and the husband or wife. Insurance policy holders who are single and do not have children of their own, can nominate their mother, sibling or foster family in the form of revocable nomination only. However, the current return for the protection of life or accident will only be given to the nominee and not the policyholder. This is because the legal rulings stipulate that nomination trust causes policyholders to lose ownership rights on all returns. Policyholders rely solely on the nominee as long as the nominee does not misuse the money. Furthermore, this nomination cannot be changed or withdrawn except by permission of the nominee or trustee of the policy. This complicates the policyholder who had named someone and then wishes to change it for reasons like a child who is already independent and self-reliant or upon divorce. 5.4 Complexity and Restrictions on (an irrevocable Nomination) In addition to the difficulties faced by the community and those mentioned before, there are other reasons that caused revocable decree to be reviewed. One of which is due to the restrictions in irrevocable nomination. The following are three case studies that had occurred and were reported to the Office of the Mufti, MUIS (Fatwa factsheets, 2012). a) Ali bought an insurance policy and named his wife as a nominee under Naming Trust (Trust Nomination). The couple later divorced and his former-wife remarried. When Ali had a car accident, the life benefits was paid to his former wife. He was then informed that he was not allowed to change or cancel the nomination unless his former-wife agreed. b) Nur is a single woman in her late 40s. She is the sole breadwinner in the family, helping both her brother who was studying in university and her sick mother. She would like to make a nomination in the insurance policy that was purchased in the name of her brother and mother. However, she was informed that she could only make a revocable nomination for her sister and mother. c) Rahimah is a single mother bearing a disabled child. She was only able to purchase one type of insurance policy that provides both death and life benefits. She would like to appoint a Special Needs Trust Company to ensure that the benefits of her policies be dealt with according to the needs of her child after her death. She also wanted to maintain her entitlement to the life benefits when she needs it. Ultimately, she would not receive any benefits for the nomination of this kind cannot be retracted. 5.5 Comparisons between Revocable and an Irrevocable Please refer to the following figure for further explanation on the differences between the two types of nominations: Features Nomination trust (Irrevocable) Nomination (Revocable) Policyholder still has rights over his insurance policies after making nominations No Yes The party that gets returns when he is alive and when he is dead Nominee gets both. The policyholder gets a return when he is alive and nominee will only get returns after death. Changes to the nomination Not allowed Cancellations can only be made if agreed by all nominees Allowed Not husband/wife or children as nominees Not allowed. Nominees can only be either husband, wife or children Allowed Nominees pass away before policyholders Return benefits belongs to nominee If there is only one nominee, nomination will be cancelled. If there is more than one nominee, parts belonging to nominees who have passed away will be given to nominees who are alive Claims bankruptcy debt on insurance returns Allowed Exposed to claimed debt Not allowed All insurance that have after death benefits can be nominated Not allowed Policy insurance that is bought by using CPF savings such as DPF and CPSIS is cannot be nominated (trust) Allowed Except for life annuity (Minimum Sum of CPF) The above comparison shows that the nomination trust has more limitations than revocable nomination. Among them, there are several types of insurance that cannot be performed as nomination trust, like Dependants' Protection Scheme (Family Protection Scheme), which is owned by majority of Singaporeans. 5.6 The similarities between nomination insurance and CPF In reviewing the decree on revocable insurance nomination in 2007, JKF had also examined decree on CPF nomination in 2010 and analyze the characteristics between the two. According to the observations of the implementation of the irrevocable decree since 2007, JKF found some similarities between the nomination of CPF accounts and revocable nomination for insurance plans. The similarities present revolves around the nomination contract itself as well as the form of returns received. Some of the key similarities are: a. Both types of nomination allow account or policy holders to change or withdraw the nomination without the consent of any party in advance. Neither will it affect ownership of the account or policy. b. The returns from both CPF and insurance can be used in the same way. For CPF account, life returns will be received by account holder monthly through retirement account upon reaching retirement age. Death returns will be given to the nominee from CPF balance if any. For the insurance money, life returns will be given to policy holders whereas death returns while received by the nominee. c. Nomination will be revoked by death of the nominee and the money remains the property of the member and insurance policy holder without having to obtain the consent of any party. Due to the CPF nomination policy having undergone changes and recent decree about it was released in 2010, therefore judgment or qiayas made by JKF with regards to the insurance nominations law on the basis of CPF decree 2010 that verdict it as a form of grants because of the similarity that exists between the two. 5.7 Similarities between Grants and Nomination Similarities also exist between nomination and grants that becomes an utmost consideration following the verdict on nomination revocable insurance by JKF and conditions of the grant. It can be said that all the grant conditions can be done except for the return of death benefits money insurance that only occurs after the death of policyholder, similar to the CPF nomination according to law and not because the giver wants to withhold the money from being delivered to the recipient. For JKF, they find similarities between grants and nominations from other aspects. Among them, the grantor reserves the right to withdraw or change his grant, as long as there is no qabdh on the grant. In the case of revocable insurance nomination, similar to that of the CPF nomination, qabdh does not occur before death of contributor in accordance to the law. Qabdh is the most important element in determining the validity of a grant. However, the views of a particular sect of jurisprudence regarding the legal position of qabdh influence other law on grants. With regards to the issue of revocation of grants, for jurists who opine that qabd is common law in the grant conditions, therefore grant can only be canceled before qabd (Nasrul Hisham, 2009: 247-248). This is further strengthened by the opinion that the ownership of mauhub is invalid for as long as there is no qabdh (Zuhayli, 1998: 4/19). 5.8 Results of the Fatwa Committee Following the conflict that occurred between the Insurance Act 2009 and the AMLA as well as the difficulties faced by the Muslim community. In 2012, JKF evaluated all the verdicts of the revocable nomination and determined that, revocable Nomination is valid from the point of practice and proceeds received are to be distributed according to the Law of Inheritance. The nominee for nomination of this kind serves as a trustee only. Whereas, irrevocable nomination is counted as a life grant and nominee for insurance of this kind is entitled a share in the nomination that was made for him "(Kumpulan Fatwa MUIS 2. 24/08/88. Cetakan Pertama. 1991. P. 22). These results are based on the principle that insurance policy is included in the inheritance of the deceased that must be divided to the heirs according to the law of inheritance. Nominee serves as a representative or trustee only. Additions made to the previous decree is, decree in 1998 has set the status of the insurance returns as tarikah that needs to be apportioned to the beneficiaries (Soal Jawab Agama, 2012: 1-2). There are similarities between the decree in 1971 and 1998 from two different aspects. Firstly, proceeds from the insurance policy are considered as inheritance and need to be distributed according to the law of inheritance. Secondly, nominee only serves as trustee for the benefit of the insurance policy and benefits must be restored to the heirs. According to the decree, it is understood that the nominee in the contract of insurance and CPF nomination is only recognized as a trustee only to the beneficiary. Therefore, they do not have a share in the inheritance, unless they are the heirs of one parent (JKF, 03/08/1998, 16/11/1998, 2007). Fatwa Committee opines that this nomination system can be considered as a form of grant because it is done when the CPF and insurance policy holders are still alive. When an insurance policy holder commits an official nomination, it is a clear demonstration about his determination and promise to give the money to the nominee. In this case the jurists agree that it is mandatory to fulfill that promise in terms of religion because it is one of the characteristics of a noble character. Christmas is also a sign of the perfection of a Muslim's faith (Nasrul Hisham, 2008: 3). Allah swt says: Translation: O you, who believe, fulfill all obligations. (Al-Maidah: 5: 1) and his words again: Translation: And Fulfill for surely every promise will be questioned. (Al-Isra ': 17: 34). Therefore, in 2012 JKF decided that the revocable insurance nomination is a contemporary form of grant. It is a new property management appropriate to the principles of Shari'ah. Although this method is not available in the literature and the works of earlier scholars, manun it will be accepted. This is based on a method that allows ijtihad in fiqh issues muamalat especially new things that are not specifically talk about in the earlier Islamic Fiqh knowledge. This was stated by (Ibn al-Jauziy Qayim, 1973: 1/470; Shatibi al, 2004: 399): "The original law of contract is valid, except as canceled or prohibited by Islamic law". In conclusion, JKF considers both the revocable insurance nomination and CPF nomination law similar and both nominations are seen as valid grants. However, JKF still advises the community not to do the nomination with the intent and purpose of terrorizing the beneficiaries. At the same time, every Muslim has the duty to ensure that all debts of the deceased are settled prior to the use of inheritance, either through inheritance law, a will or nomination (MJF13, 2012). 5.9 Purpose of Reviewing Decree Apart from preventing people from being involved in legal disputes between the heirs and the inheritance nominee, the decree serves as a law for the contract nomination done by insurance policyholders, not to serve as law on the insurance money itself. Legal insurance funds as mentioned before, is a contemporary issue and scholars have had differing opinions about the lawfulness of the various types of insurance. Muslims are encouraged to read and understand these opinions in evaluating the status of insurance they want according to their needs. Those who hold on to the opinion that allows certain types of insurance, they can make the decree as a guide in selecting the type of nomination they want to commit to. Based on the latest fatwa of 2012, the insurance money received by the nominee is no longer regarded as the inheritance (interest) of the policyholders and are to be distributed to the beneficiaries according to the law of inheritance. However, in terms of the legal currency of the nomination, Irrevocable cannot escape from debt claims therefore the JKF advises Muslims to settle remnants of deceased debt first. 6. Conclusion From the results of this study, it can be concluded that the objectives of Shari'ah is to achieve the betterment of the human world and the hereafter, preventing disputes from occurring, as long as they do not contradict the original clear evidences of Qat'i. This can be seen in the practice of insurance nomination, though scholars have differing views on the law of insurance itself, some are allowed based on the needs whereas others do not agree due to the presence of syubhah and gharar in the collection of funds and investments. However, JKF takes into account the needs of the community that prompts a financial plan for them and the future of their families, as well as limited investment options for individuals with average-income while others can only afford to invest in the form of insurance. JKF takes all of these into consideration when determining the law, such as the nomination computed as a medium that can meet the needs of the community to return the insurance money to certain people, whether in the form of Revocable or Irrevocable insurance nomination. Based on these requirements, JKF applied maqashid theory in the decrees issued to look for ways to make similar nomination with contemporary grant. This method is considered as new in property management, in line with the principles of Islamic law, even if it is not done in writing and the work of earlier scholars. It is still acceptable, based on maxims that allow ijtihad in muamalat issues, especially new things that are not found in nas qath'i (obviously) in the Quran and the Sunnah or specific discussion about the prior knowledge of the Islamic Fiqh. Ultimately, the goal is to facilitate the edicts of the Muslim community's financial needs as well as personal and family welfare financial planning without compromising the principles of Islam. Thus, there will be an increasing number of Muslims planning for assets distribution based on their individual needs. Therefore revitalizing Maqasid Shari'ah in ijtihad of JKF determining laws for insurance nomination for the benefit of mankind. 7. 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