Tips to select the best motor takaful

KUALA LUMPUR, NY, MALAYSIA, July 9, 2021 / — If you have a vehicle, then subscribing to a motor takaful is a must. Why? A motor takaful is comparable to a motor insurance plan and is designed to provide you with financial security if your vehicle and the passengers meet with an accident or face any such untoward situation on the road.

A motor takaful plan abides by Shariah ideals. So, rest assured that it does not contain any elements that are considered as Haram (like Al-Maisir, Al-Gharar, and Riba) in Islam. Once you subscribe to a plan, you must provide your contributions (tabarru’) to a motor takaful fund after undertaking the contract (aqad).

Several Takaful operators offer well-designed plans and motor tariffs. However, before you make a selection you must check whether it aligns with your requirements or not.

Tips to select the right motor takaful

Read along for tips to select the right motor takaful for you.

Type of Cover

There are three types of coverage options offered by takaful operators.

● A Third Party cover provides security against the third party’s death or bodily injury.

● A Third Party Fire and Theft cover offers financial protection against the third party’s death or bodily injury. It also offers coverage for any damage or loss of your vehicle caused by fire.

● A comprehensive cover, apart from offering protection against the third party’s death or bodily injury, also provides financial protection for the damage and loss of your vehicle caused due to fire, theft, or accident.

Check the type of cover that you want, and then select a motor takaful plan that fits your needs the most.

Excess Offered

Some takaful operators may impose an excess on your motor takaful. An excess is an amount that is deducted before the final claim amount from your certificate is paid by the operator. Before selecting one, you must check whether an excess is imposed or not.

Value-added Services

Check the types of extended coverage options offered by different takaful operators and select the one that aligns with your requirements. Your motorcycle and pillion riders or roadside assistance can also be covered as per your needs. Many takaful operators offer 24/7 roadside assistance with benefits like towing and support if you are stranded due to problems on the road.


Compare the tariffs offered by different takaful operators. Select the one that suits your budget and at the same time offers a host of benefits and privileges not just for your vehicle but for your passengers and pillion riders too.

After the liberalisation of the Motor and Fire Tariff was introduced on the 1st July 2016, insurers and takaful operators had the flexibility to determine the pricing. As a result, it was now possible for takaful participants to make better decisions. So, before you choose one, make sure to check the above points and opt for the one that includes all your desired coverage options. This way, you will be able to get all the benefits, of being Shariah compliant and Protected.

Carolina Darbelles
iQuanti, Inc.
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