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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Cheat Sheet For Beginners on No Claim Discount (NCD)

Cheat Sheet For Beginners on No Claim Discount (NCD)

At some point in our lives, we will have our own car. As much as it sounds exciting, it also comes with a certain responsibility, including knowing all the essential information.

For newbies, NCD, betterment and insurance may seem intimidating at first but you can easily understand them once you get the hang of it. If you want to attain thorough information about NCD, you’re in the right place.

Below, we have gathered all the necessary deets and answers to the most frequently asked questions.

See Also: Best Car Insurance in Malaysia (2022)

What is No Claim Discount (NCD)?

No claim discount or commonly known by its abbreviation NCD refers to an insurance discount that is given to individuals who didn’t make any claim for a year. It also includes the absence of third party claims made against your policy.

The rate of NCD is set and fixed by the Persatuan Insurans Am Malaysia (PIAM) Motor Tariff. NCD is not available during the first purchase of your  insurance policy. However, you can choose to transfer the NCD of any existing vehicle registered under your name to the new vehicle.

The maximum rate of the NCD is 55% which is eligible for those who managed to keep a clean free record for 5 consecutive years.

Needless to say, NCD is the core of insurance as it allows you to enjoy up to 55% discount on the insurance cost.

What’s the rate of NCD in Malaysia?

Period

Private Car

Motorcycle

Commercial Vehicle

1st year

0%

0%

0%

2nd year

25%

15%

15%

3rd year

30%

20%

20%

4th year

38.33%

25%

25%

5th year

45%

25%

25%

After 5th years

55%

25%

25%

The table above states the NCD rate in Malaysia, and the amount differs depending on the type of vehicle you’re using.

The rate for private cars and motorcycles is not the same as those who own private cars can enjoy the highest rate of NCD, which is capped at 55%. Whereas for motorcycles and commercial vehicles, the maximum NCD rate is only 25%. 

Based on the table, the rate of NCD will increase annually, and this reward is given to vehicle owners for being a safe driver.

As an example, if you receive a quotation with a basic premium of RM5,000 with 30% NCD, you can save up to RM1,500. If you manage to keep a claim-free record until the NCD increases to 55%, you can enjoy a whopping RM2,750 discount. Well, isn’t that great?

How To Check Your Car NCD?

Apart from referring to your previous insurance policy, you can easily check the rate of your car NCD online.

One way to do that is on our website! You just have to fill out your vehicle information. Do note that you can only check your NCD on fatberry.com if your insurance policy is expiring within 2 months. If your insurance policy is not expiring anytime soon, you can also head over to MyCarInfo.

However, make sure that the information matches with the registered details on the Malaysia Road Transport Department. Do note that some people opt for the special ID instead of their NRIC when they register their vehicle details.

Hence, if you’re a public servant, particularly an army or policeman, remember to recheck the actual ID that you used.

Does Windscreen Affect My Car Insurance NCD Rate? 

One of the most common questions that people frequently ask about NCD is whether or not claiming a broken windscreen affects the NCD. Well, it actually depends on several situations:

If you didn’t add on the windscreen insurance:

Although you can claim the replacement of the broken windscreen from your insurer, it can affect the NCD rate as it is considered as a claim. Hence, it is recommended that you include the windscreen insurance whenever you purchase one. 

If you already have a windscreen insurance: 

For those who have included this add on, you can simply claim for the windscreen replacement without having to worry about the deduction. The cost of such replacement has been covered by the add on

On another note, if you decide to pay for the cost incurred for the broken windscreen, it will not affect the rate of NCD.

How to Transfer the NCD to Another Vehicle? 

As we have mentioned earlier you can transfer the NCD of your existing vehicle to a newer one. Generally, it is recommended that you do this to enjoy a discount price of the premium cost.

As new vehicles tend to have a high premium due to the stipulated insured value, transferring the NCD is the ultimate way to save your money. Please note that you cannot transfer the NCD of your car to the motorcycle or vice versa. It can only be done for similar types of vehicles. 

Once the NCD has been transferred, the old vehicle will automatically have 0% NCD. However, the car insurance NCD rate will increase accordingly if no claim has been made within the 12 months.

If you want to transfer the NCD, you can visit the nearest insurer’s branch and request them to do so. However, you may need to pay a certain amount of the prorated price.

The Essential Things You Should Know About No Claim Discount (NCD)

What if I change to another insurer?

If you want to change to another insurer, you can still enjoy the no claim discount (NDC) that you have acquired throughout these years. So, whether you prefer Zurich, RHB, Takaful Malaysia, AmGeneral Insurance,  or etiqa, the NCD rate is applicable to all of the insurers.

Can someone else transfer their no claim discount (NCD) to me? 

The answer is no since the NCD belongs to the individual, so you cannot transfer it to another person. With that being said, you can only transfer the NCD to another vehicle as we have mentioned before. 

I’m a first time car owner, will I get 55% no claim discount (NCD)?

Unfortunately, the rate of no claim discount (NCD) for a first time car buyer is 0%. However, it will increase annually should you keep a claim-free record. The rate will gradually increase based on a renewal basis. 

If I get involved in an accident, will it affect my no claim discount (NCD)? 

Primarily it depends on the situation whether the other party is at fault or not. The insurer will make their discretion based on the police report. If you are found innocent, it will not affect the NCD rate.

In another situation, if you got into an accident and decided to pay for the cost incurred with your own money, it will also not affect the NCD since no claim has been made on your car insurance.

But, what if the other party runs away? Will it affect my car insurance NCD? 

If you managed to get the plate number, the first thing you need to do is make a police report of the incident. If the other party submits a report, the police will investigate the matter and identify the party who is at fault. Therefore, the result is entirely based on the investigation.

On the contrary, if you didn’t manage to catch the glimpse of the vehicle plate number, remember to make a police report. Then you can submit the No Fault Own Damage claim (NFOC) to your insurer. The repair cost will be covered without deducting your car insurance NCD rate.

*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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Road Tax Malaysia – Everything You Need to Know

Road Tax Malaysia – Everything You Need to Know

What is Road Tax and How It Works In Malaysia

Road tax is a tax fee paid annually by the owner of a vehicle used on the road. Road tax and car insurance are both obligatory for car owners to have. The bigger the vehicle, the more charges are required to be paid. 

Road charges are utilized for the countrywide maintenance of the road network. The amount of road tax depends on the kind of vehicle; whether it runs on diesel or petrol, the capacity of the engine, and if the car is used for commercial or personal purposes. 

Cars operating in East Malaysia pay a lesser tax amount than West Malaysia due to the variations in road conditions, amenities, and infrastructures.

Driving with an expired road tax is a crime, and you won’t be able to lodge an insurance claim to pay for the cost of the damage if an accident occurs. You will either be called by the JPJ officer or obliged to participate in a court hearing if you are found driving without a valid road tax.

Private automobiles are classed as ‘saloon’ vehicles. Examples of ‘saloon’ vehicles are hatchbacks, convertibles, and sedans. On the other hand, examples of ‘non-saloon’ vehicles are MPVs, SUVs, or pickup trucks. The road tax price for ‘saloon’ vehicles differs from ‘non-saloon’ vehicles.  Furthermore, for the same engine displacement, ‘Company-Registered Saloon’ will have to pay a higher amount than ‘Private Saloon.’ A different rule applies to ‘non-saloon’ automobiles.

So the next concern would be to figure out how much the road tax costs for vehicles in Malaysia. We have got that covered for you!

See Also: Best Car Insurance in Malaysia (2022)

Road Tax Price for Cars in West Malaysia

Engine (cc)  Base Rate  Progressive Rates Road Tax Amount
1,000 and below RM20 RM20
1,001 – 1,200 RM55 RM55
1,201 – 1,400 RM70 RM70
1,401 – 1,600 RM90  RM90
1,601 – 1,800 RM200 RM0.40 RM200 – RM280
1,801 – 2,000 RM280 RM0.50 RM280 – RM380
2,001 – 2,500 RM380 RM1.00 RM381 – RM880
2,501 – 3,000 RM880 RM2.50 RM882 – RM2,130
3,001 and above RM2,130 RM4.00 RM2,134 +

Road Tax Price for Motorcycles in Malaysia

Engine Capacity  Fixed Rate
150 and below RM2
151 – 200 RM30
201 – 250 RM50
251 – 500 RM180
501 – 800 RM250
More than 800 RM350

 

How do you calculate the amount of your road tax?

Let’s go over an example for a Proton X70.

If you look at the car specifications, the car has a 1,799cc engine. Looking at the ‘Road Tax Price for Cars in West Malaysia’ table, Proton X70 that we are talking about falls between 1,601 and 1,800 cc. We can see it has a base rate of RM200. 

To calculate the progressive rate we take the 1,799cc and minus it with the 1,601cc in the table. 

Total of progressive rate:

= (1,799cc – 1,601cc**) x RM0.40

= 198 x RM0.40

= RM79.60 

**The 01cc needs to be calculated into the progressive rates. So, minus 1600cc instead of 1601cc.

Your road tax amount:

= Total of progressive rates + Base Rate

= RM79.60 + RM200

= RM279.60

And that is how you can calculate the amount of your road tax yourself! Like how we mentioned previously, it’s important to pay your road tax on time. Don’t delay such important things as renewing your road tax or there will be heavy consequences.

 

Where To Renew Road Tax

Option 1: Road Transport Department (JPJ)  

Renewing your road tax at JPJ is possible. You just have to locate the nearest JPJ Office, queue, and get it done. Look out for a long queue because JPJ Offices are usually packed with people. Alternatively, you can head to the post office and also renew your road tax over there but an appointment is needed beforehand.

Who can renew my road tax?

The road tax renewal application can be submitted by the vehicle owner or a representative.

If the person present to renew the road tax is the owner of the registered vehicle, he must submit his MyKad for reading and record purposes into the MySikap system through the MyKad reader.

However, if you send a representative, he does not need to bring the MyKad of the registered vehicle’s owner. He only needs to submit his own MyKad.

How to renew road tax at JPJ

  1. Make sure you have prepared the necessary documents:
  • Identification card (IC)
  • Vehicle ownership certificate or copy of vehicle grant
  • Cover note insurance

2. Go to the nearest JPJ office, JPJ branch, or any UTC counter.

  • The full list of JPJ offices is here.
  • The full list of UTC offices is here.

3. Get the queue number.

4. Chill in the waiting area and wait for your number to be called.

5. Go to the counter when your number is called and get your road tax renewed.

6. Done!

 

Option 2: Pos Malaysia

Uneasy feelings and worry come along with expired road tax. Constantly worrying about getting summoned. Here’s how you can renew road tax at Pos Malaysia, besides getting it done at JPJ. The steps are exactly similar to getting it done at JPJ.

How to renew road tax at Pos Malaysia

  1. Make sure you have prepared the necessary documents:
  • Identification card (IC)
  • Vehicle ownership certificate or copy of vehicle grant
  • Cover note insurance

2. Go to any Pos Malaysia office that is nearest to you.

3. Get the queue number.

4. Chill in the waiting area and wait for your number to be called.

5. Go to the counter when your number is called and get your road tax renewed.

6. Done!

 

*For anyone who has lost the copy of your vehicle grant, you can still renew your road tax at the Post Office. You just need to bring your IC or passport. If you are only a representative, the owner’s IC is not required. 

The Pos Malaysia Centres have been reopened nationally since 9 August 2021 to facilitate the new directive, counter services for licenses, or road tax renewals.

Given the present pandemic situation, Pos Malaysia announced that they won’t accept walk-ins to avoid crowds. Vehicle owners need to make an online appointment on the Pos Malaysia Website or the Pos Malaysia app to renew their road tax at the post office.

 

Option 3: Add on road tax when you renew your insurance with Fatberry!

Skip the queue and avoid the “I was busy, I forgot” because now you can renew your road tax online!

You don’t need to queue or hire a runner to buy/renew your road tax anymore. Simply add on the road tax as you renew or buy your car insurance with FatBerry!

 

What happens if you don’t renew your vehicle insurance on time?

Problems will arise with your insurance policy if you don’t renew your vehicle insurance on time. However, if you feel like you are experiencing financial constraints, but your insurance renewal is due just around the corner, there is a leeway for that. Fortunately, insurance providers usually provide a grace period. Here are five(5) repercussions that you will face if you don’t renew your vehicle insurance on time:

1. Your Road Tax Cannot Be Renewed

Section 14(4) of the Road Transportation Act (RTA) 1987 states that if you are caught driving without a road tax, you can be fined RM3,000. The road tax and auto insurance of your car work in conjunction. So you can’t renew your road tax at the Road Transport Department (JPJ) without valid car insurance. 

You are driving illegally if you proceed to drive with an expired road tax. Furthermore, if the JPJ summons you, you are required to settle it at the court and. You can get summoned by the JPJ or the police. 

Your vehicle road tax and insurance normally expire at the same time. This makes it easier for you since you can just get it done on the same day. Once again, you cannot renew your road tax without valid insurance.

2. Your policy will get terminated.

If you skip or make late payments, chances are your insurance provider will terminate your insurance and your vehicle will not be insured anymore.

You will not be protected from the financial effect of car damage or losses resulting from an accident or any unlucky incident without vehicle insurance. This means that you won’t be able to file a claim from the insurance company.

3. The Lapse Of Your Insurance

Your insurance will lapse if you don’t renew your motor insurance or make delayed payments. You will not be covered for some time when you have a deficiency in coverage.

Fortunately, your coverage won’t lapse right away since insurance undertakings frequently allow insurance policyholders a thanksgiving period to pay your premium before it officially delays.

The grace period is normally 30 days following the end of your policy but may vary by provider. This is something you should confirm truly with your insurance provider.

4. There will be an increment in your new premium

You are seriously mistaken if you thought you could save cash by skipping or renewing your insurance later. If possible, avoid doing so because you can end up paying a greater amount on your next insurance renewal.

5. Your Credit Value May Be Affected

Your insurance will lapse if you don’t renew your vehicle insurance or make delayed payments. You will not be covered for some time when you have a deficiency in coverage.

If you are a car owner, you should know that a good credit score is essential. If you are a young adult just starting, maintaining your credit score between 300-850 is vital. The credit score is an indicator of your ability to repay loans.

It’s terrible for your credit score to delay or skip your car insurance payment. Insurance renewals payment is the type of information collected by the Central Crédit Reference Information System, a credit reporting system managed by Bank Negara Malaysia, which credit agencies will later use to compute the credit score.

 

FAQs

How to check when my road tax is expiring?

Road tax is usually renewed annually. You may quickly verify the date online through the JPJ portal if you don’t remember when your road tax is due. Once you have access to the site, follow these four (4) simple steps;

  1. Motor vehicles license expiry investigation search.
  2. Choose your ID Category  (MyKad).
  3. Fill in your ID and the registration number of your vehicle.
  4. Click submit. 

Details such as the start date and end date of your road tax and the date of the expiration of your insurance will be available on the portal. This way, you won’t miss the renewal deadline.

Why is my road tax expensive?

The bigger the engine capacity, the higher the road tax price. 

Are there other factors affecting the price of road tax in Malaysia?

Several factors determine the value of the road tax in Malaysia. Vehicle type, vehicle specs, vehicle registration location, ownership type, and vehicle purpose are all considered. West Malaysians and East Malaysians pay different rates due to the reasons mentioned at the beginning of the article.

Is there anywhere else I can renew my road tax?

Renewing your road tax is obviously much easier now with technology and online resources available. If you’re thinking about purchasing/renewing your car insurance and road tax, you can easily do it 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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