Things to Note: Motor Takaful

Things to Note: Motor Takaful

	Motor takaful not only protects your motor vehicle from losses or damages such as accidents, but also helps other participants of the plan. This is because as a participant in the plan, you contribute towards a general takaful fund in the form of participative contribution (tabarru'), which will be used to help other participants whose vehicles are involved in an accident. If you have not made a claim during the period of takaful, you are also entitled to a share of the surplus in the general takaful fund. The surplus shared is based on a pre-agreed ratio between you and the takaful operator. Below is an example of how surplus sharing can give you even more savings. Example: The sum covered is RM80,000 while the market value of the vehicle is RM100,000. 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.