Takaful Vehicle Insurance

Takaful Vehicle Insurance

The Takaful Motor Insurance Program offers a modern, Sharia-compliant solution for vehicle coverage. It provides a range of benefits including fast processing, flexible insurance options, and prompt claims settlement. Policyholders also have the freedom to choose repair providers based on their geographic location and preferred quality standards.

Additionally, holders of Takaful motor insurance policies are considered partners in the profits generated from their policies.

Types of Takaful Vehicle Insurance

Unified Takaful Insurance (Compulsory & Third Party Liability):

Takaful Insurance for Bodily Injuries (Compulsory):
As per Insurance Law No. 20 of 2005, vehicle owners are required to insure against bodily injuries and fatalities resulting from road accidents. This coverage applies to passengers and pedestrians alike, based on the principle of absolute liability, regardless of fault.
Takaful Insurance for Third-Party Property Damage:
This type of insurance compensates third parties for material damages caused by the insured vehicle. Compensation is paid when the insured party is found liable for the accident.

Comprehensive Takaful Insurance – Vehicle Body Coverage:

This insurance covers damage or loss to the insured vehicle or its parts in the following cases:

Collision or overturn
Fire or external explosion
Theft
Malicious acts by others
Falling or flying objects
Damage sustained while the vehicle is being towed due to a breakdown

How Premiums Are Calculated:

Unified (Compulsory & Third-Party) & Comprehensive Takaful Premiums:

The premium for both types of insurance is calculated based on minimum tariff rates set by the Capital Market Authority.
The comprehensive insurance premium is a percentage of the vehicle’s value (based on minimum approved rates), and depends on various factors including:
- Intended use of the vehicle (as per vehicle registration)
- Type and power of the vehicle (horsepower and passenger capacity)
- Year of manufacture
- Accident history of the owner/driver
- Required additional coverages
- Deductible amount borne by the vehicle owner per accident