Table of contents:
Malaysia Car Insurance Type – You may have heard that regular car insurance and takaful car insurance are similar. Both pursue the same goal of providing insurance protection to policyholders. But the difference is that Takaful is based on Islamic principles. But what exactly is Takaful? And what are the other differences between traditional car insurance and Takaful car insurance?
Motor Takaful is a car insurance that complies with Sharia (Islamic) laws and principles. Compared to traditional car insurance, car takaful plans are free from the forbidden Islamic principles of riba (interest), maishir (gambling) and gharar (uncertainty).
Malaysia Car Insurance Type
Takaful is an alternative to existing conventional insurance for Muslim participants mainly to avoid these prohibitive factors. However, non-Muslims can also purchase Takaful products without hesitation.
Shipping Cars To Malaysia
Policyholders are entitled to a cash refund (at least 10%) from the Takaful company if they do not make a claim during the policy period.
The Takaful system is in accordance with Sharia law and does not involve suspicious transactions. It also prohibits the elements of riba (interest), mejsir (gambling) and gharar (uncertainty), which are forbidden in Islam.
As mentioned earlier, both car insurance and regular car insurance have the same purpose of providing insurance coverage to the policy holder.
The information we provide indicates that existing insurance policies may contain elements of riba’ (interest), maishir (gambling) and gharar (uncertainty), which are prohibited in Islam. In contrast, Takaful has no such prohibited elements.
Road Accidents In Malaysia: Top 10 Causes & Prevention
(MJFK) buying conventional insurance products, including general insurance and life insurance, is a violation of Islam. The main reason is that it contains the three prohibited elements mentioned earlier.
From what we have shared, both traditional car insurance and car takaful have the same purpose of providing insurance coverage to the policy holder. Both policies also provide coverage for the policyholder’s vehicle in the event of an accident, fire or theft. However, it is mandatory for Muslims to purchase motor takaful as it does not contain ingredients prohibited by Islam.
We offer general and fully comprehensive insurance to our clients. You can compare 15 insurance and takaful providers in Malaysia. Visit us today and get your free car quote and car insurance. Want to get car insurance? Before signing up for car insurance, you should first understand the types of car insurance. This is to make sure you get the right coverage.
First of all, there are three types of car insurance in Malaysia. Let’s take a look at each type of insurance and coverage.
Road Tax Price In Malaysia
The first is fully comprehensive insurance, also known as primary insurance. This policy provides the policy holder with the most complete insurance coverage.
Comprehensive insurance protects the insured’s car in case of a car accident, fire, theft, etc. The policy also provides third party insurance coverage.
Typically, new vehicles less than 10 years old require comprehensive insurance. For cars over 15 years old, most insurance companies recommend third party fire and theft insurance (TPFT). This will be explained below.
Liability, fire and theft insurance protects you from damage and loss to third parties if you are at fault. Also, the insured’s vehicle is insured against fire and theft. This policy does not apply to the policyholder’s vehicle in the event of an automobile accident or otherwise.
Top 10 Add-ons As Chosen By Generali Malaysia’s Car Insurance Customers
This type of insurance is usually cheaper than fully comprehensive insurance and is more suitable for older, rarely used vehicles.
Liability insurance is the most basic insurance. In Malaysia, car owners must have at least third party insurance to legally drive on Malaysian public roads.
For purposes of this policy, a “third party” is a person for whom you are responsible and who is involved in an accident involving your vehicle.
This policy only applies to third parties for damage or loss caused to them and their property by your vehicle.
Bank Negara Malaysia On X: “you Can Add Flood Insurance/takaful Cover To Your Basic Insurance Policy/takaful Certificate To Ensure Protection Against Flood Damage By Paying An Additional Premium/contribution. Protect Your Home, Car
This policy is only available for third party claims, so coverage is very limited. If any damage occurs to your vehicle, you will be responsible for the cost of repairs.
For your convenience, here is an overview of the differences between the three types of car insurance:
To help you choose the right car insurance, here are three important things to consider.
It is important to choose the right insurance according to the age of your vehicle. This is to prevent overinsurance (car insurance).
Compare & Buy Car And Motor Insurance Online In Malaysia
For example, if your vehicle is older than 15 years, you may qualify for liability, fire and theft insurance. This is because the estimated cost of damage to your vehicle can be cheaper and cheaper.
However, if your car is new, we recommend that you sign up for comprehensive insurance as it can provide full coverage for the vehicle.
If you use your car frequently, it may be a good idea to get comprehensive insurance to provide more protection.
For example, if your car is over 10 years old and you use it often, comprehensive insurance is a better option because it includes coverage in the event of a car accident.
Insurance Plans For Your Overall Protection
For vehicles that are over 10 years old but have a market value of RM10,000 or more, it is recommended that you take out comprehensive insurance to ensure that your vehicle is adequately insured. Comprehensive insurance protects car owners from having to pay high repair costs in the event of an accident.
Most insurance companies offer the three types of insurance policies covered above. Before purchasing an insurance policy, consider your insurance coverage, the age of the vehicle, the use of the vehicle and the amount of coverage to ensure you have adequate protection.
To compare policies from different insurance companies in Malaysia, use our website where you can get up to 15 car insurance quotes for free. Compare offers and easily extend your car insurance online.
It is one of the largest insurance comparison sites in Malaysia, offering insurance products from over 10 brands. Get your free insurance quote today! What do Myvi and Mercedes have in common? Answer: Both vehicles require valid auto insurance to be registered on the road.
Car, Home & Business Insurance
If you own a car, whether new or used, domestic or imported, you need valid car insurance to drive it on the road. It’s that simple.
Anyone who says otherwise is either uninformed or just doesn’t care about their own well being and those around them.
Additionally, if you don’t have valid car insurance and road tax (both apply together and you can’t buy or renew one without the other), you may have to spend extra money to pay traffic citations when you’re stopped or being stopped by the police may be possible. to obstacles.
Under the Road Transport Act 1987, all car owners in Malaysia are required to have valid car insurance and road tax, both of which must be renewed annually.
How To Check Car Insurance Status In Malaysia 2024?
However, in addition to the legal requirements, it is also important to have adequate car insurance for your vehicle so that you can be confident that your insurance policy will cover you if something bad happens (accident, natural disaster, etc. ). Damage due to theft may also occur). Cost of repair or replacement.
According to a study by the Malaysian Road Safety Research Institute, more than 400,000 road accidents were recorded in 2020 alone, of which nearly 5,000 were fatal.
There is every reason to get adequate and comprehensive insurance that protects you and your vehicle when you are out and about.
There are three types of car insurance available in the Malaysian market and the purpose of each is to protect you and/or your vehicle.
Conventional Car Insurance Vs Motor Takaful
Third party insurance is the cheapest of the three types of car insurance commonly offered and is the simplest form of car insurance you can buy in Malaysia.
Imagine this. It’s a rainy night and you’re heading home after a long night at work. Because the road was slippery, the car suddenly skidded at an intersection and collided with another driver. Fortunately, you escaped unharmed, but so did the person who fell.
To avoid spending a lot of money on hospital bills, not to mention auto repairs, you need at least auto liability insurance.
As the name suggests, liability insurance covers damages resulting from the bodily injury or death of another person (a third party). This includes loss or damage to your vehicle or property.
Malaysia Motor Insurance
In most cases, third party fire and theft insurance works the same as liability insurance. However, this policy allows you to make a claim if your car is damaged by fire or stolen.
This type of insurance covers loss/damage due to fire and theft, but not loss/damage due to the accident itself.
This car insurance offers a wider range of coverage than the two car insurance policies mentioned above.
Not only does it provide coverage;
