What is Covered Under Motor Takaful?

Motor takaful is a plan that provides coverage options against the loss or damage of a vehicle due to several reasons such as accidents, theft, etc. Apart from providing financial coverage for vehicles, it also offers coverage against third-party bodily injury or death and third-party property loss or damage. Motor takaful plans also Shariah-compliant and are available for non-Muslims as well.

Concept of Takaful in Motor Takaful

To get financial coverage from a motor takaful plan, you must first subscribe to it. Like other takaful plans, you can subscribe to a motor takaful plan by offering your contribution (tabarru’). You will also have to undertake a contract (aqad) to become a participant of your selected plan. Motor takaful plans are based on the principles of mutual cooperation (ta’awun) wherein participants agree to help each other, should any of the participants face any unexpected defined risk.

The funds (contribution) collected from the participants of a plan are pooled into a takaful fund. If any participant faces any loss or damage concerning his vehicle, financial help is offered from that pooled fund. Takaful funds are handled by a takaful operator, who also invests the funds in Shariah-compliant investment avenues. All motor takaful plans are deeply based on Islamic Shariah laws, so they do not have elements of Al-gharar (uncertainty), Al-maisir (gambling), and Riba (Interest).

Types of Motor Takaful Plans

There are different types of motor takaful plans that cater to different requirements. You can check them below to know what basic features are covered under motor takaful plans:

Third Party Plan

If you subscribe to a third-party plan, you will get coverage options against the third party’s death or injury. A third-party plan also provides coverage against property damage caused by your vehicle.

Third Party Fire and Theft Plan

A third-party fire and theft motor takaful plan provides coverage against damage to a vehicle caused by an accidental fire, theft, burglary, explosion, and lightning. It also offers coverage for third-party death, bodily injury, vehicle damage, and property damage caused by your vehicle.

Comprehensive Plan

A comprehensive car takaful offers coverage against the loss or damage of a vehicle due to theft, accidents, or accidental fire. Apart from providing coverage for the vehicle, it offers financial protection for the passengers and the drivers in the event of injury, death, or permanent disability.

Motorcycle takaful plans protect not just your motorcycle, but your loved ones who are pillion riding with you as well.

Roadside assistance takaful plans provide 24/7 Roadside Assistance for your vehicle, with flood protection & personal accident benefits for the driver and all passengers of the vehicle.

You must also note that the Road Transport Act of 1987, Malaysia has made it mandatory for vehicle owners to get a plan that offers coverage for third-party risks. Violation of the mandate is considered an offence.


When you opt to take a motor takaful plan, you can also select additional benefits and coverage options. This way, you can design your motor takaful plan according to your needs and requirements. Some plans are also specifically designed for two-wheelers, riders, and pillion riders. You can check and compare the best motor takaful plans in Malaysia and select the one that fits your needs.