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Dependants’ Protection Scheme (DPS)
The nominated assured sum in DPS is the nominee's absolute right and are not subject to farāʾiḍ, while non-nominated sums form part of the deceased's estate and distributed according to farāʾiḍ. The Fatwa Committee advises to plan meticulously and avoid causing injustice and harm to other heirs whilst considering dependants or others' needs.
Last updated 25 February 2026
بسم الله الرحمن الرحيم
الحمد لله رب العالمين، والصلاة والسلام على سيد المرسلين وإمام المتقين نبينا محمد وعلى آله وأصحابه أجمعين. اللهم أرنا الحق حقا وارزقنا اتباعه، وأرنا الباطل باطلا وارزقنا اجتناه وبعد.
INTRODUCTION
1. The Fatwa Committee received a question from the Office of the Mufti (OOM) on 20 July 2023 regarding nomination in the Dependants’ Protection Scheme (DPS), whether it is subject to the principles of farāʾiḍ and needs to be distributed to the estate according to the principles.
2. This question is also related to the fatwa decision on the DPS scheme issued in 1997. The Fatwa Committee at the time decided that the assured sum in the DPS should be distributed to the heirs according to the rules of farāʾiḍ (whether it had been nominated or not) because the assured sum is considered part of the policyholder’s estate after their death.1
3. However, there is a need to review the 1997 fatwa decision as fatwas related to nominations (2010) and insurance (2012) have since been reviewed, where nomination is considered as a new form of giving recognised in Islamic law. This review is necessary also to ensure that the fatwa can be properly implemented to secure human welfare and ensure its alignment with the objectives of the DPS scheme.
DPS NOMINATION SCHEME
4. The DPS is a term life insurance scheme owned by many Singaporean workers. It aims to alleviate the financial burden that family members may face at an early stage if the policyholder (i) passes away, (ii) suffers from a terminal illness, or (iii) loses all physical abilities permanently (Permanent Disability) before age 65.
5. The policyholder has the right to nominate the benefits from this scheme to a nominee, whether the nominee is (i) an individual, whether they are an heir or not, or (ii) a legal entity.2
LEGAL CONSIDERATIONS
a) Discussion of the DPS nomination contract
6. The nomination contract for the DPS scheme is a new kind of contract not found in the issues of past jurists in the fiqh tradition (turāth). According to the general fiqh principle, all new contracts are valid if they have not been explicitly prohibited by the Shariah.
الأصل في العقود والشروط: الجواز والصحة ولا يحرم منها ويبطل إلا ما دل الشرع على تحريمه وإبطاله
Meaning: “The original ruling for a contract and its conditions is permissibility and validity, it is not prohibited and invalidated except for what Shariah indicates as prohibited and invalidated.”3
7. The DPS nomination contract falls also under the category of ʿaqd al-tabarruʿāt (contract without any exchange in return). This is because nomination is a form of giving by the policyholder to the nominee without any payment/exchange of assets between the two parties. Therefore, the contract remains valid, even if the nominee only receives the compensation after the policyholder’s death. It is similar to a will contract, when the distribution of money only occurs after the testator’s death.4 The policyholder is free to determine (ḥaq al-taṣarruf), during his/her lifetime, who will receive the DPS assured sum.
b) Distribution of DPS Assured Sum
8. In addition to considering the validity of the nomination contract, two aspects require further consideration, namely: (i) the issue of al-qabḍ and (ii) the likelihood of the nominee not receiving the DPS assured sum.
First: The issue of al-qabḍ
9. Although the nominee does not receive the DPS assured sum (al-qabḍ)5 before the policyholder’s death, this does not necessarily invalidate the contract.
10. This is because the general principle (al-aṣl) in contracts is that al-qabḍ is not a prerequisite unless specifically required.6 This is also the more accurate view in the Shafi’i school as written by Imam al-Nawawi in his book Rawḍah al-Ṭālibīn.7 This is also the view of Ibn Rushd Al-Hafid in Bidāyah al-Mujtahid wa Nihāyah al-Muqtaṣid.8
Second: the likelihood of the nominee not receiving the DPS assured sum
11. The DPS assured sum will be distributed to the nominee if the policyholder passes away before the age of 65 and the sum has not been paid to them during their lifetime. Therefore, there is a possibility that the nominee may not receive anything if the sum has already been given to the policyholder beforehand.
12. Nevertheless, from an Islamic viewpoint, these terms do not affect the contract’s validity as the policyholder has willingly consented to all the terms and conditions outlined in the DPS agreement. The Qur’an underscores the importance of honouring agreements made by individuals. Allah ﷻ said:
﴿يَا أَيُّهَا الَّذِينَ آمَنُوا أَوْفُوا بِالْعُقُودِ ۚ﴾
Meaning: “O you who have believed, fulfil [all] contracts.” (Surah al-Māʾidah, verse 1)
13. The Prophet ﷺ also explained the importance for every Muslim to fulfil all agreements:
وَالْمُسْلِمُونَ عَلَى شُرُوطِهِمْ إِلاَّ شَرْطًا حَرَّمَ حَلاَلاً أَوْ أَحَلَّ حَرَامًا
Meaning: “And the Muslims are bound by their conditions, except for a condition that forbids what is permissible or permits what is forbidden.”9
14. The terms and conditions contained in the DPS are also included in the general fiqh principle:
الأصل في الشروط اعتبارها
Meaning: “The original ruling for conditions is to recognise them.”10
15. The Fatwa Committee is of the view that the two terms of the DPS mentioned above do not affect the validity of the nomination contract. Both matters do not conflict and negate the original purpose of the DPS scheme contract.
DECISION OF THE FATWA COMMITTEE
16. Based on the considerations above, the Fatwa Committee has decided:
i) The assured sum in DPS received by the nominee becomes his/her absolute right. If the policyholder has made a nomination, the money does not become part of the deceased’s estate and, therefore, is not subject to distribution according to farāʾiḍ.
ii) Any sum in DPS that has not been nominated becomes part of the deceased’s estate and can only be distributed according to farāʾiḍ.
17. The Fatwa Committee advises individuals to meticulously plan for their estate, especially when making nominations via DPS. They should avoid causing injustice or harm to other heirs, while, at the same time, considering the needs of dependants or others who may be in greater need. This is based on the Prophet’s ﷺ advice in his hadith:
...إِنَّكَ أَنْ تَدَعَ وَرَثَتَكَ أَغْنِيَاءَ خَيْرٌ مِن أَنْ تَدَعَهُمْ عَالَةً يَتَكَفَّفُونَ النَّاسَ...
Meaning: “…Indeed, for you to leave your heirs well-off is better than to leave them dependent on others…”11
18. May Allah ﷻ grant us wisdom and prudence in planning and managing our assets during our lifetime.
والله أعلم
والله ولي التوفيق، وصلى الله على سيدنا محمد وعلى آله وصحبه وسلم.
Dated this day 21st of September 2023 coinciding on 6 Rabiulawal 1445H
DR NAZIRUDIN MOHD NASIR
CHAIRMAN, THE FATWA COMMITTEE
THE MUFTI OF SINGAPORE
1 The Fatwa Committee is of the opinion that the payment of the DPIS (Dependants’ Protection Insurance Scheme) should be distributed according to farāʾiḍ. (Fatwa Decision 19/8/1997)
2 Great Eastern, Dependants’ Protection Scheme. Refer to: https://www.greateasternlife.com/content/dam/corp-site/great-eastern/sg/homepage/dps/tnc.pdf
3 Ibn Taymiyyah, Majmūʿ al-Fatāwā, (Madinah: Majmaʿ al-Malik Fahd li Ṭibāʿah al-Muṣḥaf al-Sharīf, 1995), 29:132.
4 Al-Shādzulī, Naẓariyyāh al-Sharṭ fī al-Fiqh al-Islāmī, (Riyadh: Dār Kunūz Ishbīliyyā, 2009), 159.
5 Al-qabḍ: An undisputed transfer of the gift from the giver to the giftee.
6 This principle also serves as the fundamental principle for two fatwas issued by the Fatwa Committee: (i) CPF Nomination in 2010 and (ii) Insurance Nomination in 2012.
7 Al-Nawawī, Rawḍah al-Ṭālibīn, (Beirut: Dār ʿĀlam al-Kutub, 2003), 4:437.
8 Ibn Rushd Al-Ḥafīd, Bidāyah al-Mujtahid wa Nihāyah al-Muqtaṣid, (Cairo: Maktabah Ibn Taymiyyah, 1994), 4:163.
9 Al-Tirmidhī, Jāmiʿ al-Tirmidhī, hadith no. 1352.
10 Al-Zuḥaylī, Al-Qawāʿid al-Fiqhiyyah, (Damascus: Dār al-Fikr, 2006), 2:833.
11 Al-Bukhārī, Ṣaḥīḥ al-Bukhārī, hadith no. 2742; Muslim, Ṣaḥīḥ Muslim, hadith no. 1628.