Third party – This protects you against the third party’s death, bodily injury and/or property damage.
Comprehensive – This protects you against the third party’s death, bodily injury and/ or property damage; as well as loss and/or damage to your vehicle due to accidental fire, theft or an accident.
Who is a third party?
A third party is a person who is injured or has suffered loss or damage arising from an accident involving your motor vehicle. A third party may be a pedestrian, a driver or passengers in another
vehicle. The first party to a motor takaful plan is you as the vehicle owner and the second party is the takaful operator.
How much should I cover?
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 in the event of a claim. The average condition is a penalty 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 and 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.
What is a 'no claim discount' (NCD)?
This can be regarded as an incentive to you for not making a claim during the preceding period of motor takaful cover. The discount is given according to the following scale when you renew your certificate:
The NCD can be transferable to another takaful operator/ insurance company or another vehicle that belongs to you.
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