We all know that to drive your own car legally in Malaysia a road tax is required. And to get a road tax for your car, it is mandatory for you to have coverage for your car. When it comes to car coverage, there’s conventional insurance and there’s Takaful. While they may sound interchangeable, Takaful is actually very different from conventional insurance – but not all of us are aware of this.
Don’t believe us? We even headed out to the streets to ask around and gauge public awareness of Takaful, and just like us, most of the interviewees weren’t too sure about what Takaful is, despite having heard of it before. We did get some interesting answers and you can check out our video to see what sort of answers people came up with.
Determined to find a comprehensive answer, we set up a meeting with the CEO of the Malaysian Takaful Association (MTA), Mr. Mohd Radzuan Mohamed. After all, who else would be a better person to explain this to us?
It’s easy to say that Takaful is just an Islamic form of insurance, but the reality is that there is more difference than just that. Without boring you too much with these written words, what can be said is that they have fundamental differences – one being that Takaful consists of a Takaful fund, Takaful operator, and you, while insurance involves the insurance provider and you. The existence of the Takaful fund as a standalone unit means you have the rights to it too (implying you gain profit from investments made with it too).
We could go into the details of Takaful here, but it’s honestly much easier to understand through the video. And if it’s time for you to renew your car coverage, head on to MotorTakaful.com by Etiqa. When you renew with them, you get a 10% rebate, cashback, and many more.