PART XIII - PAYMENT OF POLICY MONEYS UNDER A LIFE POLICY OR PERSONAL ACCIDENT POLICY
Section 169. Payment of policy moneys where there is no nomination.
(1) Where a policy owner of a policy dies without having made a nomination, subject to section 168, the licensed insurer shall pay the policy moneys of the deceased policy owner to the applicant who produces the Grant of Probate or Letters of Administration or Distribution Order.
(2) Subject to subsection (1), the licensed insurer may pay to the policy owner's spouse, child or parent in that order of priority and where there are more than one spouse, child or parent, in equal shares to each person of that class and where there is no spouse, child or parent and-
(a) where the policy moneys do not exceed a hundred thousand ringgit or such greater amount as may be prescribed, the licensed insurer may pay all that policy moneys without requiring the Grant of Probate or Letters of Administration or Distribution Order-
(i) to a person who satisfies the licensed insurer to be entitled and likely to be given the Grant of Probate or Letters of Administration or Distribution Order; or
(ii) to a person who satisfies the licensed insurer to be beneficially entitled to the estate of the deceased policy owner; or
(b) where the policy moneys are more than a hundred thousand ringgit, or such greater amount as may be prescribed, the licensed insurer may pay to the person referred to in subparagraph (a)(i) or (ii) the amount referred to in that paragraph and subject to subsection (6), pay to that person the balance of the policy moneys upon production of the Grant of Probate or Letters of Administration or Distribution Order.
(3) In this section, a reference to policy moneys is a reference to the aggregate amount of policy moneys in respect of all policies of the policy owner with that licensed insurer where there is no nomination.
(4) The Grant of Probate or Letters of Administration or Distribution Order granted or having effect as if granted, in respect of the personal estate comprising the policy moneys, by a Court in Malaysia or a competent authority outside Malaysia, or its certified copy shall be sufficient proof to the licensed insurer to pay the policy moneys to the person to whom the grant was made.
(5) The licensed insurer may accept the Grant of Probate or Letters of Administration or Distribution Order or any other document having the same effect, granted by a Court in Malaysia or a competent authority outside Malaysia, as sufficient proof to pay the policy moneys of the deceased policy owner to the person to whom the grant was made, provided that the same have been duly registered with the Court in Malaysia and sealed in accordance with the Probate and Administration Act 1959 [Act 97].
(6) Where, upon the expiry of twelve months after a payment under paragraph (2)(b) has been made by a licensed insurer, and a balance of the policy moneys still remains payable and no claim has been made by a person who holds a Grant of Probate or Letters of Administration or Distribution Order, the licensed insurer shall pay the balance of the policy moneys to the person who received the initial payment of the policy moneys.
(7) Policy moneys paid under this section shall be deemed to have been duly paid and the licensed insurer shall be discharged from liability in respect of the policy moneys so paid notwithstanding the absence or invalidity of, or any defect in the Grant of Probate or Letters of Administration or Distribution Order or any other document having the same effect.
(8) A person to whom a payment may be made under this section shall give a receipt which shall be deemed to be a valid receipt.