Motor Takaful Contributions: How Prices Are Calculated
Your motor takaful contribution depends on your car's sum covered, NCD, risk profile and selected coverage. Each takaful operator uses its own pricing and underwriting methods, so the same car may receive different quotations.
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- Compliance
- Your sum covered and risk profile affect your contribution.
- NCD can reduce your contribution by up to 55% for eligible private cars.
- Add-ons increase the amount you pay.
- Applicable charges may include 8% service tax and RM10 stamp duty.
- Wakalah fees are part of the contribution structure, not automatically an extra charge.
What affects your motor takaful contribution?
| Factor | How it affects the price |
|---|---|
| Sum covered | A higher sum covered generally means a higher contribution. |
| Car make and model | Repair costs, parts and theft risks can differ. |
| Vehicle age | May affect repair and claim risks. |
| Coverage type | Comprehensive cover generally costs more than third-party options. |
| NCD | A higher eligible discount reduces your contribution. |
| Driver profile | Age, experience and claims history may be considered. |
| Add-ons | Optional protection, such as windscreen and flood cover, increases the contribution. |
Choose an appropriate sum covered for your vehicle. Read about sum covered and market value vs agreed value.
Why do takaful operators charge different prices?
Motor takaful pricing for comprehensive and third party, fire and theft cover was liberalised in stages from 2016 to 2017. This allows operators to set their own prices based on their underwriting assessments.
Third-party-only cover remains subject to the applicable tariff. Operators may also consider different risk factors when calculating contributions.
Where does your contribution go?
Motor takaful uses two important concepts:
- Wakalah
A fee paid to the takaful operator for managing the takaful arrangement. It is included in the contribution structure and should not be counted twice.
- Tabarru'
A donation allocated to the shared takaful risk fund, which helps pay eligible claims.
The allocation and Wakalah fee structure differ between products. Check your Product Disclosure Sheet (PDS) for the details.
Service tax and stamp duty
Current motor takaful PDS examples show:
- Service tax: 8%, where applicable.
- Stamp duty: RM10, where applicable.
Your final payment may also include selected add-ons. Check your quotation for the complete breakdown.
How can you reduce your contribution?
Maintain your NCD
Private cars can qualify for up to 55% NCD after five consecutive claim-free years.
Choose necessary add-ons
Avoid paying for optional protection you do not need.
Consider voluntary excess
Some products offer a lower contribution in exchange for a higher amount you pay when making a claim.
Compare operators
Check the contributions and coverage offered by takaful operators on BJAK.
Frequently asked questions
Not necessarily. The price depends on your vehicle, NCD, coverage and the operator's pricing assessment.
Yes. Eligible private car participants can receive NCD discounts based on their claim-free history.
Your vehicle's value, NCD, claims history, selected add-ons and the operator's pricing may change from year to year.
Compare motor takaful on BJAK
Compare contributions, coverage and add-ons from participating takaful operators before renewing your car protection.