Have you ever wondered what the difference between Takaful and Insurance is? In this article, we will compare and explain the difference between Motor Takaful and Conventional Insurance. To make our comparison more realistic we will use Etiqa’s product to compare. Etiqa offers both Motor Takaful and Motor Insurance.
The Etiqa Motor Takaful (Takaful) and Etiqa Motor Insurance (Conventional) plans are both among the best motor insurance plans available to all Malaysian road users. They are both a comprehensive motor protection plan which covers loss, theft and even damages to cars. The best part is that customers will get a 10% rebate on top of their NCD when they renew either plans online. So, which should you choose? Let us help you understand so that you can decide on which plan suits your need.
Similarities between Etiqa’s Motor Takaful and Insurance?
It is clear that the Takaful and Conventional plans both serves different purposes to customers. However, we would first like to highlight on many of the similarities between both plans. Some of them include :
Comprehensive motor insurance
Coverage for loss, theft or damage protection
10% rebate on top of your NCD for online renewals
Get reimbursed with a value you agree with
All authorized drivers automatically covered
24/7 emergency hotline
24-hour roadside assistance
Third party bodily injury and death
Third party property loss or damage
Coverage for loss or damage to vehicle due to accidental fire, theft or accident
0% Interest Installment Plan for Maybank Credit Card Holders
Differences Between Motor Takaful and Insurance
Now that you know the similarities between both plans, let us show you some of the differences in the benefits between both these plans so you can have a better understanding. These are the seven differences that will be able to help you decide on which plan suits your needs.
Motor Takaful Main Features
- Shariah compliant plan
The Takaful plan is a Shariah compliant version of insurance while the conventional insurance is not. This is a significant difference for muslim customers in Malaysia as they might choose the Shariah compliant plan as urged by their religious teaching.
- Offers cashback when no claims is made
The Takaful plan offers cashback for zero claims at the end of the policy year whereas the Conventional plan does not. Therefore, a driver who is confident that he or she practices safe and careful driving might be entitled to obtain additional cash benefit by selecting this plan.
Rental car assistance in the event of an accident
The Takaful plan offers rental car assistance in the event of an accident and replacement services for tires, battery and more. This benefit might be useful for working customers who need to travel to work on a daily basis as having a mode of transportation is always important to them.
Conventional Insurance Main Features
Free car towing up to 200km.
The Conventional plan offers free car towing assistance up to 200km. This is a benefit that is not offered by the Takaful plan. This benefit might be useful for drivers who often drive alone and need a mode of assistance in case of an emergency.
Fast Claim Approval within 30 minutes
The Conventional plan offers fast claim approval for amounts of up to RM5000 which the Takaful plan does not offer. We believe this benefit will certainly be useful for drivers who are busy and always on the go, as they may only need to wait up to 30 minutes for claim approvals.
- Get 30% cash refund when you drive less
The Conventional plan offers customers cash refund up to 30% for low mileage usage. We believe that this benefit might help customers who rarely use their car to save a lot of money in the long term.
Takaful vs Conventional : Which is better?
In conclusion, the Takaful plan is a must for people who want a Shariah compliant plan while people can choose the Conventional if a Shariah compliant plan is not a concern to them. In addition, the Takaful provides cashbacks, when you do not make any claims for accidents during the end of the policy year. However, Conventional does not have this benefit. The good news is, if you do not drive much, the Conventional plan will give you up to 30% cash refund while the Takaful plan does not have this benefit. The 30% cash refund is an important benefit especially for people with a spare car at home that is not driven often.
Besides that, the Conventional plan also provides customers free car towing up to 200km and faster claim approvals. If you are someone who is always busy with work, then this plan would benefit you a lot as your claims will be approved within 30 minutes and you do not have to worry about paying extra for tow service. On the other hand, the Takaful plan provides you with an immediate replacement car and also provides tires and battery replacement services for their customers. This is great especially for people who drive their car to work everyday and cannot afford to wait long until the car is repaired as they do not have a spare car at home.
We hope all this information would have opened your eyes to make a better decision by now. The factors discussed above should help you realise your needs in choosing between the Takaful or Conventional plan.
Key Differences : Takaful and Conventional Plan
The Takaful plan is for people who:
want a Shariah compliant plan
want claims cashback for safe driving
need a replacement car after an accident
The Conventional plan is for people who:
drive less or second car that are not used that often
travel long distance
want fast claims processing