Takaful Car Insurance: What Is The Difference?

Takaful Car Insurance: What Is The Difference?

Besides conventional car insurance, there is another version of it: takaful car insurance. What is takaful? What is the difference between conventional car insurance and takaful car insurance? Read on to find out.

Anyone old enough to drive and own a vehicle must have heard about the alternative to conventional insurance products, that is the takaful insurance products. Almost all insurance products in Malaysia will have their takaful version, and that includes car insurance. But what is the difference compared to conventional insurance?

Fun fact: insurance has existed since 215 BC. Over 1400 years, civilizations throughout the world have been practicing the concept of insurance. In the Arab world, the ancient Arab tribes were the pioneers of takaful. 

The term ‘takaful’ originated from Kafalah. Kafalah is an Arabic word meaning a joint guarantee or guaranteeing each other. A community sharing the responsibilities and fairness in compensation is prominent in takaful concepts. 

Takaful car insurance is Shariah-compliant. Policies are created based on Islamic teachings.

Takaful car insurance is also known as Islamic insurance. It relies on the principles of cooperativeness as well as the separation between the shareholders’ operations and funds. In other words, you, the policyholder, have ownership of your takaful insurance’s operations and funds.

The Muslim jurists made a conclusion that Islamic insurance must be based on the principles mentioned above. In addition to the prominent elements of solidarity, common interest, joint indemnity, and shared responsibility.

In other words, the policyholders are considered to be joint investors. Meanwhile, the takaful operators (insurance vendors) are considered to be a mudarib, which means an agent or manager for the policyholders. Profits and losses are shared. 

Takaful insurance, including takaful car insurance, demands fund contributions where every participant supports one another – sharing is caring. 

Essentially, policyholders under takaful insurance co-operate for the common good of everyone involved. Each policyholder would make a payment (a donation known as tabarru) to help those who require assistance in times of trouble.

Liabilities are spread evenly and losses are divided across the community pooling system. This system has a purpose whereby making profits is not the priority. Instead, it is to encourage and uphold the principle of bearing each other’s burden in troubled times.

Other differences between takaful car insurance and conventional insurance.

There might not be much of a difference between takaful car insurance coverage and conventional insurance. However, there are still some differences in certain aspects; particularly the concepts mentioned previously. Those concepts are the allocation of funds and the sharing of profits.

Just like conventional insurance, takaful policyholders who didn’t make a claim in that particular year are going to enjoy the No Claim Discount (NCD). Here’s the amount that takaful policyholders would receive if they didn’t make any claim:

Coverage Period

NCD Amount

1st year 25%
2nd year 30%
3rd year 38.33%
4th year 45%
5th year 55%

In addition to NCD, you can also look forward to receiving a percentage of the profits shared. That is if you didn’t claim in that particular year. This kind of reward is called hibah (similar to a gift or donation in this case). 

If there’s a sharing surplus when the financial year ends, the distribution of funds will be equal between the insured and insurer. Also, if you’re renewing your takaful car insurance, you can utilize the rebate for your renewal donation. What a way to save! 

Finally, the moment everyone has been waiting for. Is takaful insurance more expensive than the conventional one? The answer is, it simply depends on the coverage type chosen based on the insured’s circumstances. 

Like conventional insurance, the takaful insurance policy would also specify the coverage period and nature of the risk. A takaful operator will administer and manage your funds, normally where a sum of fees may apply (upon agreement of both parties). The fees may include costs for claims management, underwriting, as well as sales and marketing.

Everyone can apply for Takaful insurance.

Although takaful insurance is formed based on Islamic concepts and teachings, it is not limited only to Muslims. Non-Muslims are also eligible to get takaful insurance. Regardless of your faith, you should understand the minor differences and see if you think it is best for you in the long run, even though there’s not much difference when it comes to the premium.

Renew your insurance at Fatberry.com and get the best deals!

P/S: It’s school holidays! Before you go cuti-cuti or balik kampung, make sure you have ticked off everything on the car maintenance checklist! Drive safe, maintain social distancing, and take care!

 

 

 

*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.

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Car Maintenance Checklist: A Beginner’s Guide

Car Maintenance Checklist: A Beginner’s Guide

The old adage of “failing to prepare is preparing to fail” also rings true for commuting. Here’s a car maintenance checklist to help you prepare for your commute if you’re new to driving and owning a car. 

 

The borders are open; you can now go balik kampung or Cuti-Cuti Malaysia if you’re vaccinated! It must’ve been a long time since your car goes on a long journey since the number of Covid-19 cases skyrocketed and the government enforced the MCO for months on end.. You need to check on your vehicle condition and make sure everything looks good before you go and rentas.

Here’s a car maintenance checklist to help you prepare for your commute, regardless of the distance:

1. Engine oil

First things first, check your oil level and the date that you may need an oil change. If it is almost time to change your oil, then do it immediately when you can. Mechanics usually stamp a sticker on your windscreen to remind you when you need to change the oil. However, if for some reason it is not there, or you can’t remember the mileage, you can still do it manually by checking the oil dipstick underneath your bonnet.

2. Fluids

Humans aren’t the only ones who are advised to consume plenty of fluids. The level of fluids in your car also needs to be kept at an optimal level. This includes the oil, coolant, windscreen wash levels, and brake fluids. This is an efficient way to avoid unnecessary breakdowns that could lead to possible accidents.

3. Condition of tires

Your tires are your car’s only contact with the road so you need to ensure that they are in the best condition. This not only helps avoid road accidents but also increases your fuel economy. Make sure they are properly inflated, and also check whether your tires can last the entire journey. Worn-out tires may blow out during your commute if you haven’t checked your tires for ages.

4. Light and signals

You may need someone’s help to check the light and signals of your car. While you sit in the car and turn on all the lights and signals, ask them if the lights are working well. Functioning lights and signals can be the difference between safety and disaster.

5. Battery

You might never know if your car’s battery is in good working condition if it hasn’t been changed for a while. If the sound of your starter is sluggish, it may indicate corrosion or a dying battery. Go change it as soon as possible.

6. Wipers

Parking under the hot sun can sometimes harden or damage the rubber. Before your commute, check your wipers to ensure they are in good working condition for clear visibility. We also hope you’ve followed our previous advice regarding fluids as this relates to wipers as well.

7. Air filter

The car’s performance and efficiency will be improved if the supply of clean air to the engine is plentiful. Also, do not forget the cabin filter since the air is not fresh inside the car if the cabin filter is worn out.

8. Emergency equipment

Emergency equipment includes your mobile phone, spare tire, and emergency tools (like flashlights, screwdrivers, spanners); which should always be kept in your bonnet (with the exception of your phone, of course).

9. Prepare for the worst-case scenarios

Unfortunately, in Malaysia, the number of road accidents is constantly fluctuating; but the numbers remain alarmingly high. Make sure you, your family, and your car are protected by having the right car insurance plan.

10. Renew your car insurance plan or road tax with FatBerry to enjoy special promos!

Perhaps one of the most important things on your car maintenance checklist is renewing your car insurance and/or road tax. Now, with FatBerry, you can compare and customise your car insurance plan before you buy it! However, you can only renew your policy within two months before your policy expiry date. So be quick and be on time!

You can also earn extra cash with FatBerry! All you have to do is register, and refer your family and friends to our platform. You can earn RM25 when your family or friends renew their insurance with FatBerry! 

*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.

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Roadside Assistance: 5 Handy Car Services Apps

Roadside Assistance: 5 Handy Car Services Apps

It’s always frustrating when your car experiences a breakdown mid-journey. Thankfully, there is plenty of roadside assistance ready to serve you!

It can happen to anyone. It’s something that most people dread. It can be shocking and also be the epitome of an emergency. There is no doubt, however, that it is frustrating. Yes, we’re talking about roadside car breakdowns here!

Thankfully, though, we live in the year 2021. No matter where you go in Malaysia, you’ll be hard-pressed to find someone who doesn’t own a smartphone and mobile internet plan. This means, wherever you are, you can always find help easily.

Today’s technology means there are plenty of mobile apps for almost every need. So, to help ease your worries, here are five car service apps that provide roadside assistance:

1. Roger

Roger is a comprehensive car ownership app that gets you help during car emergencies and helps manage the upkeep of your vehicles at just one tap. If your car experiences a roadside breakdown, Roger is ready to help by providing tire replacements, tow truck services, and accident assistance.

Furthermore, they can also deliver fuel, batteries, and tires. It doesn’t end there. They can install the battery and replace the tires for you too!

2. Bateriku

Bateriku specializes in battery change service if you ever need any. They are ready to help you with your car battery problem, regardless of the weather. They have 8 battery brands for you to choose from and they come with 6-18 months warranty depending on the brand, type, and vehicle model.

The best thing about Bateriku is, you only pay for the price of the battery. The delivery, checking, and installation are all free!

3. MyAssist

Unlike most other car service apps, MyAssist offers 24 hours and 365 days coverage. Yes, even if it’s raining! Furthermore, depending on the traffic and breakdown location, they can offer a 45-minute emergency request delivery.

The services MyAssist provides are jump start, battery change service, tire change, petrol delivery service, unlocking cars, and towing. Their staff and technicians have more than 10 years of experience and are backed by a fleet of 30 vehicles and support from 490 panels all over Malaysia.

4. Pomen

With Pomen, you are covered if you need a breakdown, tire change, battery replacement, jump start, or car service and maintenance. They offer transparent service with clear, flat-rate pricing, cashless payment, and reliable help for motorists.

Unlike your traditional roadside assistance club membership, you do not need to pay a membership fee to belong. You can also register family members on your profile, who will then be able to keep tabs on your status when you are having car trouble.

5. TukarBateri

Based on the name itself, TukarBateri is another battery change service. They have been in the car battery business for over 10 years!

They can get your change of battery delivered to you within 30 minutes, subject to the traffic and weather. TukarBateri is currently only available in the Klang Valley, Selangor, and Penang.

Similar to bateriku, you’re also paying for the cost of the battery only. Delivery and installation are free! Plus, they will come to your assistance even when it’s raining!

Get car insurance on Fatberry’s platform that covers your damages and enjoy additional special promos!

Sometimes, damages to your car are too severe and it needs to be towed to a workshop. At other times the damages are due to natural disasters, vandalism, theft, accidents, civil commotion, riot, strikes, etc. That’s why it’s good to know if these damages are covered by your car insurance.

With FatBerry’s AI-powered platform, you can compare and customise your car insurance plan before you buy it, all in three minutes or even less! However, you can only renew your policy within two months before your policy expiry date. So be quick and be on time!

We are currently offering a JOMRENEW promo where you can get RM150 rebate for your car insurance renewal!

That said, if your car insurance has not expired yet, don’t worry. Just click ‘CHOPE’ for your next renewal. This deal is exclusively for Visa cardholders only, where you can claim your RM1 road tax later. In other words, you can reserve the promo first before the deal ends.

On the other hand, if you’re interested in earning some extra cash, refer your friends to our platform and earn RM25 when your friends renew their insurance with FatBerry! Check out our main page for more info!

*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.

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Car Insurance Terminologies: The Basics (Part 2)

Car Insurance Terminologies: The Basics (Part 2)

It’s always helping to understand and know the basics and most common terminologies of car insurance.

 

When comparing the best car insurance (or motorcycle insurance), it’s crucial for you to review the policies carefully before you sign on one of them. Most of us are not familiar with the legal terms stated in the policies. 

Being ignorant of what they meant or misunderstanding the terms could be problematic should accidents happen. Which makes it all the more reason for you to know the terminologies of car insurance in Malaysia.

 

Just like in Part 1, we’ll break the terminologies down. This time, we’ll go through terminologies starting with D, E, and F:

 

Common car insurance terminologies starting with ‘D’

 

Disability

If an accident causes you disability where you’re no longer able to work, you’ll usually receive compensation from your Personal Accident policy. This applies to grave injuries that leave you incapable of working. In this situation, you will receive a lump-sum compensation.

Meanwhile, for cases where you are absent from work temporarily because of an accident. Compensation in the form of a weekly payment will be paid for up to two years. 

Disability Benefit

This is an added provision for life insurance policies that waives the premium and at certain times a monthly payment income. This applies if you, the insured, become permanently and totally disabled. 

Deductible

Refers to the agreement made between the insurance company and the policyholder. It is where both parties will share the medical treatment costs. For instance, if the total medical bill is RM300 and the excess amount option is RM100, your insurer will pay the RM200 balance.  

Declaration

Refers to the part in an insurance policy that contains personal details and representations of the applicant. For example, past accidents or previous medical conditions.

Date of Issue

It is different from the insurance commencement date. The “Date of Issue” refers to the actual date when an insurance company finally issues the policy’s document.

Damages

Refers to the compensation for property damages or injuries sustained due to another party’s negligence or wrongful acts.

 

Common car insurance terminologies starting with ‘E’

 

Ex Gratia

The insurer pays the insured out of kindness or grace.

Exclusions

Anything excluded or not covered by an insurance policy 

Exceptions 

Also known as Exclusions in some cases. “Exceptions” are meant to limit the risk of an insurer. It can be found in the small print of policies.

Effective Date

The date when an insurance company is legally obligated to start the coverage. However, “Effective Date” is not the same as “Policy Date” and “Issue/Inception Date”.

Endorsements

The insurer or insured makes special plans or changes after the policy has already started.

Endowment

A combination of savings and protection where payment will be disbursed at a particular time if you sustain permanent and total disability or upon your demise.

Common car insurance terminologies starting with ‘F’

Fire and Theft

Comprehensive Car Insurance is usually not required for older cars. Therefore, an individual may extend a Third-Party policy for added premium in order to cover damage or loss caused by theft or fire (as well as attempted theft). However, idle or parked cars are only covered for theft and fire.

Free-Look Period

The period when policyholders can take their time to examine their newly issued insurance policy (normally 15 days). Once the period is over, the policyholder can make an exchange for a full refund of the premium by surrendering the policy without making claims.

Face Amount

In case a particular event that is insured happens, the insurer will make a lump-sum payment to the insured as promised.

Foreign Use (Cars)

In some countries, their car insurance can also be extended to cover the insured when they are driving in neighbouring countries. For example, some Singapore car insurance covers the insured while they are in Malaysia or Southern Thailand. Another example is when Hong Kong residents drive their vehicles in China, where they’re covered by their policies. 

Fleet Policies

For companies that own a few vehicles, all of them can be insured and covered under one policy, typically with a discount given.

 

Always remember to read your policy thoroughly. Check whether every detail is correct, and make sure you truly understand all the terms and conditions mentioned in the contract. Don’t sign the policy until you’re certain that everything’s right and satisfactory. You may also ask for help from someone to review the policy and ask for their second opinion. 

*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.

Car Insurance Terminologies: The Basics (Part 1)

Car Insurance Terminologies: The Basics (Part 1)

If you’re new to car insurance, you may be overwhelmed by the legalities of it all. Many of us don’t know some of the term meanings stated in a car insurance policy. We’ll explain a few basic and most common car insurance terminologies to know.

 

It can be tedious to find, compare and buy car insurance, particularly if you’re the fussy kind (which is good because we’re talking about saving yourself and others). In between all of that, you’ll also have to review the policies carefully before you sign on the dotted line.

For most of us, we may not be familiar with the legal terms stated in the policies. Not knowing what they meant or misunderstanding what they meant could cause you some problems in the future, which is why you need to know all there is to know about the terminologies of car insurance in Malaysia.

Since there are so many car insurance terminologies that you must know, we’ll break it down into a few parts. In this Part 1, we’ll list the terms that start with A to C:

 

Common car insurance terminologies starting with ‘A.’

 

Act Of God

This refers to whatever occurrences that happen naturally beyond human control, for example, floods or landslides…

Acceptance

Both parties involved agree to the terms of an insurance contract, where it is binding.

Accident

An unintended or unforeseen occurrence or event.

Accidental Bodily Injury

The insured’s body has injuries due to an accident.

Additional Perils 

Add-ons made for basic insurance policies. They are sometimes known as Special Perils or Fire policies, where they cover perils such as explosion, lightning, and fire; or losses due to flood and storm.

Age Limits

Insurance companies won’t accept policy renewals or applications by those who are under the age limit or over the age limit.

Agents

An individual who sells and provides services related to insurance policies on behalf of insurance providers.

Annual Limit

For a one-year policy, the Annual Limit refers to the maximum amount paid for your claims settlement. Your premium will be higher the higher the annual limit.

Assured

An individual who has been insured against loss.

 

Common car insurance terminologies starting with ‘B.’

 

Benefit Policy

A contract that pays the insured a sum of money in a specific occurrence, whether or not the person insured faces financial loss.

Beneficiary

An individual who receives the payout from the contract made if the insured dies.

Beneficiary, Contingent

When the beneficiary dies before the insured, the death benefit will be designated to individual(s). 

Beneficiary, Irrevocable

A beneficiary that the insured cannot change.

Beneficiary, Primary

An individual or individuals who will receive the benefits.

Betterment

If some wrecked parts need to be replaced with new ones when you send your damaged vehicle for repair, a portion of the costs will be covered by your insurer. The difference needs to be paid by you based on the standard betterment scale, ranging from 0% to 40%.

Bodily Injury Liability

 A legal liability arises when someone faces an injury or dies.

Breach of Contract

The insured fails to comply with his/her insurance policy’s terms and conditions. 

Broker

An individual who represents the insured by servicing and arranging insurance policies on the latter’s behalf. The broker earns commissions from the insurance company.

 

Common car insurance terminologies starting with ‘C.’

 

Claim

An individual makes a claim to an insurance company for a loss that the policy covers.

Conditions

The policy owner (the insured) needs to comply with the policy’s terms before his/her insurers pay for the claim made.

Contract of Indemnity

This type of property insurance restores the insured’s financial condition to how it was before when he/she suffers a loss or misfortune. However, it is not considered a Contract of Indemnity for Personal Accident insurance if the insurer makes a lump sum payment to the insured, which has been pre-agreed.

Contribution

In the case where an individual holds more than two insurance policies (which are contracts of indemnity) that are similar in terms of coverage for the same perils, the law will prevent the insured from recovering his/her loss under the policies so he/she could profit from it. 

Coordination of Benefits

When more than one policy covers an insured, the primary carrier will be determined by a group policy provision. This is to ensure that the insured will not receive overpayments in claims.

 

You must read your policy thoroughly. Check whether every detail is correct, and make sure you truly understand all the terms and conditions mentioned in the contract. Don’t sign the policy until you’re confident that everything’s right and satisfactory. You may also ask for help from someone to review the policy and ask for their second opinion. Stay tuned for the second part of this blog post!

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*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.