Motor Takaful covers you against loss or damage to your vehicle due to accidental fire, theft or accident. It also covers bodily injury or death of a third party as well as loss or damage of a third party’s property.
Related Information

Dealing with takaful intermediaries

Motor insurance

Traffic Accident – What to do next?

How to prevent motor theft

Insurance fraud

Taking up a car loan

Making a complaint
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  Motor takaful not only protects your motor vehicle from losses or damages such as accidents, but also helps other participants of the plan. This is because as a participant in the plan, you contribute towards a general takaful fund in the form of participative contribution (tabarru'), which will be used to help other participants whose vehicles are involved in an accident.

If you have not made a claim during the period of takaful, you are also entitled to a share of the surplus in the general takaful fund. The surplus shared is based on a pre-agreed ratio between you and the takaful operator.

Below is an example of how surplus sharing can give you even more savings.

Example: The sum covered is RM80,000 while the market value of the vehicle is RM100,000. The loss is RM5,000. The average condition will operate as follows.
  The takaful operator will only pay RM4,000 instead of RM5,000 for the loss. You have to bear the difference of RM1,000.  
  Make sure that the amount covered in your motor takaful certificate reflects the market value of your vehicle, i.e. the cost of replacing your vehicle with a similar make, model and condition.

If the amount covered is less than the market value, the average condition will apply and you will be penalised when you make a claim for underinsuring your vehicle. Underinsuring means the sum covered at the time of loss is less than the market value.

Example: The sum covered is RM80,000 while the market value of the vehicle is RM100,000. The loss is RM5,000. The average condition will operate as follows.
  The takaful operator will only pay RM4,000 instead of RM5,000 for the loss. You have to bear the difference of RM1,000.  
  Motor takaful will not cover the following:  
Your own death or bodily jury due to a motor accident.
Damage to tyres unless the vehicle is damaged at the same time.

Consequential losses, depreciation, wear and tear, rust and corrosion, mechanical or electronic. breakdowns, failures or breakages, equipment or computer malfunction.
Loss, damage or liability occurring outside the geographical area (Malaysia, Singapore and Brunei).
Loss or damage caused by or due to cheating or criminal breach of trust.
Loss, damage or liability arising from an act of nature, i.e. flood, storm or landslide.
If you or any person with your consent is not licensed to drive the vehicle.
If you or the authorised driver drives the vehicle whilst under the influence of alcohol and drugs
Loss, damage or liability caused by the vehicle being used for unlawful purpose.

If the vehicle is used for or is prepared for any motor sport or competition (other than treasure hunts) or any other purpose specified in the certificate.
  With additional contributions, you can extend the standard motor takaful plan to cover the following:  
Passenger liability cover
Claims by the passenger of the vehicle against you arising from a accident.
Convulsion of nature
Any accident, loss or damage caused by or in connection with flood, typhoon, hurricane, volcanic eruption, earthquake, landslide, landslip or other convulsion of nature that is specifically excluded under a motor policy.
Legal liability of passenger for acts of negligence
Acts of negligence by your passenger that causes loss or damage to a third party.
Example: A passenger opening the door of the motor vehicle causing injury to a passer-by who may be a pedestrian or motorist.
Breakage of glass in windscreens or windows
Shattering of your windscreen or window other than that caused by an accident.
Strike and civil commotion
A chaotic situation due to a strike or civil commotion that inflicts damage upon your vehicle.
  If you do not make a claim during the preceding period of your motor takaful cover, you will be entitiled to a No claim discount or NCD as an incentive. The discount is given according to the following scale when you renew your certificate:  
Takaful Period
After the first year of takaful
After the second year of takaful

30 %
After the third year of takaful
38 1/3 %
After the fourth year of takaful
After five or more years of takaful

  The NCD is transferable to another takaful operator/insurance company or another vehicle that belongs to you.
Excess is the amount of loss you will have to bear before the takaful operator will pay for the balance of your claim. Example: The claim is for RM1,500. The amount of excess is listed at RM1,000. That means the takaful operator will only pay you RM500. The takaful operator may, as stated in the certificate, impose excess on the motor takaful plan.
Loading is imposed to ensure that your contribution commensurate with the risk you bring. The most commonly used loading factors are your age, any adverse driving characteristics, cubic capacity (engine CC), specific claims experience of your vehicle and re-conditioned vehicles.
The takaful cover will compensate your loss by putting you back to the same financial position as you were in immediately before the loss. You cannot profit from a motor takaful claim.
  Betterment is, when you repair your vehicle after an accident, and you need to replace one part with a new franchise part, for example, your old bumper is replaced with a new franchise part. In line with the principle of indemnity, you will have to bear the difference in cost as your repaired vehicle is in a better condition than before.  
  Compensation for actual repair time (CART)  
  CART means a reasonable amount payable by third party takaful operator as compensation for loss of use of vehicle. Let’s say somebody has collided with your vehicle, and you make a third party claim against them. Your vehicle needs to be repaired, and you cannot use it at that time. As you are deprived of the loss of use of your vehicle, you can claim for CART of your vehicle or items such as:  
Cost of taking alternate transport of similar type and engine cubic capacity
Renting a vehicle of similar type and engine cubic capacity.
  The actual repair time will be set by an independent loss adjuster, based on the number of days it will take to repair your vehicle. Takaful operators at their own discretion may allow an additional 7 working days grace period for any unforeseen or unavoidable delay.  
  When applying for a takaful plan :  
Do disclose all material facts on the risks to be covered.
Do read the ‘Important Notice’ on the Proposal Form.
Do answer all questions fully and accurately.
Do complete and sign the Proposal Form yourself.
Do pay the contribution.
Don’t leave any question in the Proposal Form unanswered.
Don’t use ticks & dashes to answer the questions requiring full answers.

Don’t withhold or misrepresent any material fact. Otherwise, the plan issued will be void, meaning that the claim can be repudiated.

Don’t underinsure, as you will be penalised by the application of ‘average condition’ in the event of a claim.
Sign any blank forms
  After a loss or damage :  
Do notify the takaful operator immediately
Do report to the police all cases involving theft

Do send all writs or claims from third parties immediately upon receipt to the takaful operator
Do cooperate with the takaful operator and loss adjuster
Do communicate with the takaful operator in writing
Do take reasonable action to mitigate further losses
Don’t admit liability, pay or negotiate with the third party on claims

Don’t deliberately inflate the claim with the belief that the takaful operator will systematically reduce the claim. This is untrue and could also cause the claim to be forfeited

Don’t leave the damaged building exposed to further losses without taking reasonable precautions to ensure its safety
  Claim involving a motor accident  
If you are involved in a motor accident, the general rules that you need to observe are:
Obtain the following details relating to the accident:
Names and addresses of all drivers and passengers involved;
Registration number, make and model of each vehicle involved;

Third party’s driving licence number and takaful/insurance identification; and

Names and addresses of as many witnesses as possible
Take safe actions to prevent further deterioration of the situation, such as calling the police/fire brigade and protecting undamaged parts.
Lodge a police report within 24 hours of the accident.
Notify your takaful operator as soon as possible followed by a written notification.
Send all supporting documents together with your completed claim form immediately to your takaful operator. Copies of the following are usually required:
The police report lodged
Driver’s identity card

Driver’s licence
Vehicle registration card
Road tax
Also view our helpful guide on what to do if you’re involved in a traffic accident.
  Claim involving damage to your vehicle  
If you have a comprehensive cover, you can claim on your own takaful certificate.

Send your damaged vehicle to the workshop approved by the takaful operator and inform your takaful operator immediately. Check with your takaful operator for the list of approved workshops.

Submit the fully completed Motor Accident Report Form together with all supporting documents immediately to your takaful operator.

Cooperate fully with adjusters or takaful claims investigators.
Do not instruct repairs until you have the written consent of your takaful operator.
  Claim involving a third party  
  Follow the same procedures as “Claim involving damage to your vehicle”  

Do not readily admit liability to the third party and/or any other party.

Inform your takaful operator of any third party or potential third party claim. Refer all third parties and/or his representative to your takaful operator on all matters.
  Claiming as a third party  

Notify your takaful operator and the takaful operator / insurance company you are claiming against.

Follow the instructions given by your takaful operator and/or the takaful operator/insurance company you are claiming against, and submit all supporting documents to speed up the claim processing.
  Claim involving theft of your vehicle  

Lodge a police report immediately

Notify your takaful operator by telephone within 24 hours of the discovery of the theft followed by written submission of the claim form.

Follow the instructions given by your takaful operator and cooperate fully with them during the course of investigation of the theft claim.
  Additionally, view our tips on how to prevent your vehicle from being stolen.  
  The electronic cover notes system under JPJ eINSURANS is part of the e-Government initiative undertaken by the Ministry of Transport for road tax renewal. This system will be operational for new registration and renewal of road tax only.  
Insurance companies and takaful operators will transmit motor insurance/takaful information electronically to the Road Transport Department (RTD) and;
Policy owners will receive a confirmation slip from their insurers/takaful operators/agents as proof of insurance/takaful purchase
Upon confirmation of successful transmission by the insurer/takaful operator/agent concerned, policy owners will then proceed to either RTD or Pos Malaysia offices for road tax renewal.
  What vehicle owners need to ensure  

Provide a copy of their vehicle registration card to their insurer/takaful operator/agent at the point of purchase of motor insurance/takaful cover;

Receive the confirmation of successful transmission of their cover note information to RTD from their insurer/takaful operator/agent prior to road tax renewal; and

Contact their insurer/takaful operator/agent for assistance in the event they face difficulties in road tax renewal.
To gain a better understanding about your motor takaful policy, download our booklet or visit our FAQ section on Motor takaful. You may also contact a takaful operator of your choice for further explanation.