Some may find it hard to choose motor takaful in Malaysia as the products may look the same at first glance. In order to help you find the best motor takaful, we will help you compare the best motor takaful in Malaysia, particularly for comprehensive coverage for private cars.
Differences between takaful and conventional insurance
Before we look into each motor takaful available in Malaysia, are you aware of the differences between takaful and conventional insurance?
Generally, conventional insurance and takaful share the same objective of protecting policyholders and/or the third party in the event of an accident, damage to cars and properties, fire and theft, following the policy.
However, the key difference between takaful and conventional insurance is that takaful is free from the elements that are against Islam including Riba’ (interest), Maysir (gambling) and Gharar (uncertainty). Another thing you should know is takaful is not only limited to Muslims; non-Muslims can also purchase takaful. Refer to our visual below for the differences between takaful and conventional insurance.
Types of motor takaful
Like conventional insurance, there are also 3 types of motor takaful which are:
- Comprehensive
- Third-party, fire and theft
- Third-party
In this article, we will compare motor takaful only for comprehensive coverage. As you may know, this motor takaful type offers the most comprehensive coverage compared to third-party, fire and theft and third-party coverage, as our visual below illustrates.
The best motor takaful in Malaysia
According to the Malaysian Takaful Association (MTA), there are 4 motor takaful operators in Malaysia which are Takaful Malaysia, Takaful Ikhlas, Zurich Takaful and Etiqa Takaful. In this post, we will compare the key benefits offered by each motor takaful for comprehensive coverage for private cars. Let us get started.
Takaful Malaysia
Takaful Malaysia through myClick comprehensive plan offers a range of benefits including:
1. Complimentary personal accident cover of RM15,000 per life for driver and passengers
Personal accident cover typically involves additional premiums. However, Takaful Malaysia offers this benefit at no charge.
Its comprehensive plan comes with a complimentary personal accident coverage of RM15,000 for each driver and passenger in the event of accidental death or permanent disability.
2. Free all drivers coverage
This takaful plan provides free all drivers coverage. Typically, you will have to pay RM20 to enjoy this coverage.
With this coverage, anyone authorised to drive your car will be automatically covered. You do not have to provide any names to your insurer.
3. Cashback for no claims
Takaful Malaysia also rewards their policyholders with cashback, should they make no claims within the coverage period.
However, note that cashback by Takaful Malaysia is not guaranteed and it may vary depending on future claims and Takaful Malaysia’s investment performance of takaful risk fund.
4. 24/7 roadside assistance
Through Tele Bantuan, Takaful Malaysia offers 24/7 emergency assistance to their Comprehensive Private Motor Takaful participants. Their roadside assistance includes an unlimited number of breakdown towing up to 50km, jumpstart services, change of battery or tires, emergency delivery of petrol, minor wiring work and vehicle repair with free labour costs up to 2 hours.
Takaful Ikhlas
Through IKHLAS Private Car Comprehensive Plus Takaful, Takaful Ikhlas also offers attractive benefits that include:
1. Complimentary personal accident cover for participants up to RM10,000
Like Takaful Malaysia, Takaful Ikhlas also offers free personal accident coverage. While Takaful Malaysia offers RM15,000 per life for the participant and passengers, Takaful Ikhlas covers up to RM10,000 only for the participant.
2. Waiver of compulsory excess for unnamed drivers
In the event that you let anyone who is not a named driver drive your car, you will have to pay a compulsory excess of RM400 if your car runs into an accident.
However, Takaful Ikhlas waives this excess even though the driver is not named in your takaful policy.
3. Transportation fee reimbursement up to RM100
Takaful Ikhlas also offers transportation fee reimbursement of up to RM100 for your use of public transport when your car is repaired in a panel workshop.
4. 24-hour roadside assistance
Takaful Ikhlas through Bantuan IKHLAS Road Assist offers free roadside services including 24-hour accident and breakdown towing services, roadside assistance and locksmith services.
Zurich Takaful
Next, Zurich Takaful through its product Z-Driver Takaful also offers a range of benefits including:
1. Personal accident coverage up to RM175,000 for as low as RM15 a year
Unlike Takaful Malaysia and Takaful Ikhlas which offer free personal accident coverage, Zurich Takaful charges a nominal fee for personal accident coverage that is as low as RM15 a year for coverage of up to RM175,000, subject to terms and conditions.
This additional coverage protects you as the participant and other passengers.
2. Free all drivers coverage
Zurich Takaful also lets you extend your coverage to an unlimited number of additional named drivers, free of charge.
3. Waiver of betterment cost
In the event of an accident, you may have to pay a betterment cost, which is a portion of the cost of new and original parts. However, with this waiver of betterment coverage, you can replace the damaged parts with new and original parts at no extra cost.
4. Discount up to 20% with a voluntary excess
In addition to any standard or compulsory excess that may apply, you may choose to take a voluntary excess to reduce your takaful premium or contribution.
You can choose from RM500 to RM5,000 to self-pay in the event of claims to get a discount on your motor contribution. However, ensure that you can afford to pay the excess amount which will be applicable to all claims except third-party claims.
Etiqa Takaful
Etiqa Takaful also offers competitive benefits to its comprehensive motor takaful participants including:
1. Free all drivers coverage
Like all other motor takaful providers, Etiqa Takaful offers free all drivers coverage. There is no need for you to put in any named drivers as all your authorised drivers are automatically covered.
2. No excess
For drivers above 21 years old, you do not have to pay any excess for an insurance claim.
3. Free courtesy car after an accident claim
What if you have no other car when your only car is in a workshop for repair?
Etiqa Takaful lets you use a free courtesy car for 14 days. If you heavily rely on only one car, especially for your daily transport, this is a good benefit for you.
4. 24-hour emergency road assistance
Like all other motor takaful providers, Etiqa Takaful through Etiqa Claims Care also offers 24/7 emergency road assistance.
Compare the best motor takaful at Bjak
We have shared the key benefits offered by all four motor takaful providers in Malaysia which are Takaful Malaysia, Takaful Ikhlas, Zurich Takaful and Etiqa Takaful. Before you buy any motor takaful, ensure that you first compare the benefits and premiums offered by the providers. Take some time to peruse the product disclosure sheet and policy wording carefully.
In order to help you easily compare the benefits and premiums offered by the motor takaful providers, simply use Bjak, one of the biggest insurance comparison sites in Malaysia. Visit at Bjak.my and get your free motor takaful and car insurance quotes today.
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