Compare Motor Takaful in Malaysia

Choosing motor takaful in Malaysia can be confusing. At first glance, many plans may look similar. The differences usually come from the extra benefits, roadside assistance, driver coverage, and optional add-ons included in each plan.
In this article, we compare the key benefits of the motor takaful plans currently available through BJAK, focusing on comprehensive cover for private cars.
Note: Benefits, limits, and contributions can change by product and policy. Always check the latest Product Disclosure Sheet (PDS) before buying.

Differences Between Takaful and Conventional Insurance

Before comparing motor takaful, it helps to understand how takaful differs from conventional insurance. Both provide financial protection against risks such as accidents, damage to your vehicle, fire, theft, and third-party liability, subject to the terms of the policy or takaful certificate.
The main difference is how the protection is structured:

• Motor takaful operates based on Shariah principles, including concepts such as Tabarru’ and Wakalah. Contributions are managed according to the takaful structure and applicable Shariah requirements.
• Takaful is available to both Muslims and non-Muslims.

Types of Motor Takaful

Like conventional car insurance, motor takaful generally comes with three main types of coverage:

1. Comprehensive
2. Third-party, fire and theft
3. Third-party

In this article, we focus on comprehensive motor takaful. Comprehensive cover provides protection for your own vehicle against covered losses such as accidents, fire, and theft. It also includes third-party liability, subject to the terms and conditions of the certificate.

Motor Takaful Providers Available on BJAK

Malaysia currently has four licensed general takaful operators that can provide motor takaful. However, BJAK’s current panel includes three of these operators:

• Takaful Malaysia
• Takaful Ikhlas
• Zurich General Takaful

The plans available to you can also depend on your vehicle, NCD (No Claim Discount), vehicle age, model, and the operator’s underwriting requirements. Below is a closer look at the three operators currently available on BJAK’s panel.

Takaful Malaysia

Takaful Malaysia’s Takaful myMotor offers several benefits for private car owners:

1. Complimentary personal accident cover of RM15,000The plan provides complimentary Personal Accident (PA) coverage of RM15,000 for each eligible driver and passenger in the event of accidental death or permanent disability, subject to the terms of the plan.
2. Free cover for additional driversTakaful Malaysia states that all authorised drivers are automatically covered at no extra cost. You do not need to provide their names.
3. Cashback for no claimsTakaful Malaysia also provides a cashback benefit when the certificate remains claims-free during the coverage period. The amount and eligibility are subject to the applicable terms and conditions.
4. 24/7 roadside assistanceThrough its Tele Bantuan programme, Takaful Malaysia provides 24/7 roadside assistance. For private cars, complimentary breakdown towing is available up to 50km and can be used for an unlimited number of trips, subject to the applicable terms.

Takaful Ikhlas

Takaful Ikhlas offers the IKHLAS Private Car Comprehensive Plus Takaful. Its current PDS lists several complimentary benefits:

1. Complimentary personal accident coverThe plan provides RM10,000 complimentary Personal Accident coverage for the participant, subject to the certificate terms.
2. Waiver of compulsory excess for unnamed driversNormally, an RM400 compulsory excess may apply to unnamed drivers. Takaful Ikhlas’ Comprehensive Plus plan includes a Waiver of Compulsory Excess for Unnamed Driver as a complimentary benefit (subject to certificate terms).
3. Transportation fee reimbursementTakaful Ikhlas provides reimbursement of up to RM100 for eligible public local transportation expenses while the insured car is being repaired at an approved workshop.
4. 24-hour roadside assistanceComplimentary 24-hour Bantuan IKHLAS Road Assist includes accident and breakdown towing, roadside assistance, and a battery delivery service.

Zurich Takaful

Zurich offers Z-Driver Takaful, a comprehensive motor takaful plan with several value-added benefits:

1. Personal accident coverage up to RM175,000Zurich advertises PA coverage of up to RM175,000 per car, with contributions starting from RM15 a year. (Note: This is a paid coverage option, not complimentary).
2. Free additional driver coverageYou can extend coverage to an unlimited number of named drivers for private use without an additional charge. (BJAK also lists Zurich as providing All Drivers coverage at no extra cost, though exact coverage should be checked against your quotation).
3. Waiver of bettermentBetterment charges may apply when new original parts are used to repair an older vehicle. Zurich offers a Waiver of Betterment add-on to waive these costs.
4. Discount with voluntary excessChoosing a voluntary excess can provide a discount of up to 20% on the motor contribution. This means you agree to pay a higher amount out-of-pocket during a claim in exchange for a lower upfront contribution.

Which Motor Takaful Should You Choose?

There is no single motor takaful plan that suits every car owner. Instead, compare the benefits that matter most to you:

Benefit	Takaful Malaysia	Takaful Ikhlas	Zurich Takaful
Comprehensive cover	✓	✓	✓
Complimentary PA	RM15,000 per driver/passenger	RM10,000 participant	Optional cover up to RM175,000
Additional driver coverage	Free authorised drivers	Unnamed-driver excess waiver / authorised drivers	Free additional named drivers / BJAK lists All Drivers
Roadside assistance	24/7	24 hours	24 hours
Breakdown towing	Up to 50km	Subject to service/product terms	Subject to certificate towing limit
Transportation reimbursement	—	Up to RM100	—
Betterment waiver	Optional benefits vary	Available as optional cover	Available
Voluntary excess discount	—	—	Up to 20%

Note: This table is for easy comparison only. Benefits may depend on the exact product, quotation, certificate, and add-ons selected. The latest PDS and certificate wording take priority.

What Should You Check Before Buying Motor Takaful?

Don’t compare the contribution price alone. Before buying, check:

1. Coverage: Make sure the plan provides the type of protection you need (comprehensive is best for protecting your own vehicle).
2. Driver coverage: Check whether additional drivers are covered automatically or if you need to manually add them.
3. Roadside assistance: Pay attention to towing distance limits, the number of allowed towing trips, breakdown assistance, and battery services.
4. Add-ons: Depending on your needs, compare optional add-ons like windscreen protection, special perils/flood cover, betterment waivers, PA cover, or e-hailing coverage.
5. Product Disclosure Sheet (PDS): Read the latest PDS and takaful certificate before making your decision, as benefits shown online can change.

Compare Motor Takaful at BJAK

Motor takaful plans can look similar, but the additional benefits can be quite different. Instead of looking at the contribution alone, compare the coverage, driver benefits, roadside assistance, and add-ons included in each plan.
You can use BJAK to compare available motor takaful and car insurance quotes online. Get your free car insurance quote and compare your available options before renewing.