What is IKHLAS Private Car Comprehensive Plus Takaful?
Car takaful in Malaysia generally comes in three tiers - third party only, third party fire and theft, or comprehensive, and the IKHLAS Private Car Comprehensive Plus Takaful sits at the top of that range. Offered by Takaful Ikhlas General Berhad, a wholly owned subsidiary of MNRB Holdings, this is a Shariah-compliant motor takaful certificate that covers your vehicle against accidental damage, fire, and theft, while also protecting you against liability to third parties for bodily injury or property damage.
The contract operates under two Shariah principles: Tabarru' (donation to a shared risk fund for mutual solidarity among participants) and Wakalah (Takaful IKHLAS acts as your agent to manage the fund, for which a Wakalah fee is charged). Up to 33% of your contribution is taken as a Wakalah fee upfront, with the remainder going into the Risk Fund for Tabarru's purposes. If the Risk Fund generates a surplus at year's end, participants receive 50% of the distributable surplus after Takaful IKHLAS takes its Surplus Performance Incentive - provided the amount due exceeds RM10.
Cover is valid in Malaysia, Singapore, and Brunei. Extension to southern Thailand (within 25 km of the Malaysian border) and to Kalimantan, as well as ferry transit to Sabah and Labuan, are available via endorsement at an additional contribution.
What Does It Cover?
The base certificate covers your own vehicle and third-party liability. On the own damage side, your car is covered for accidental collision or overturning (including from mechanical breakdown or wear and tear), fire, explosion, lightning, breakage of windscreen or sunroof (including tinting film), burglary and theft, malicious acts, and damage sustained while your car is in transit by road, rail, inland waterway, or ferry between Penang island and the mainland.
For third-party liability, you are covered for death or bodily injury caused to other parties, and for damage to other parties' property.
What is not covered under the base certificate:
- Your own bodily injury or death from a motor accident (requires separate personal accident or medical cover)
- Flood, storm, landslide, and other acts of nature (available as an optional add-on under the Special Perils endorsement)
- Consequential losses, loss of use, and depreciation
- Mechanical, electrical, or electronic breakdown not arising from an accident
- Tyre damage unless other parts of your car are also damaged
- Any loss arising from cheating or criminal breach of trust
- Drunk driving and unlicensed driving
How Claims Are Settled
When your car is damaged, and the repair is economical, Takaful IKHLAS will arrange repairs at an approved panel workshop, pay you a cash equivalent of estimated repair costs, or reinstate/replace your vehicle with one of the same make, model, age, and condition. If the car is declared Beyond Economic Repair (BER) or is stolen and not recovered, you are paid the market value at the time of loss or the sum covered - whichever is lower - and the certificate terminates.
Under-coverage: If your sum covered falls short of the actual market value by more than 10%, any claim payout will be reduced proportionally. For example, if your car's market value is RM100,000 but you only covered it for RM80,000, and the assessed loss is RM5,000, Takaful IKHLAS pays RM4,000, and you bear the remaining RM1,000. It is worth covering your vehicle at its current market value to avoid this.
Betterment: If new original parts are used in repairs and your car ends up in better condition than before the damage, you will need to contribute toward the betterment cost based on your car's age. Cars under five years old have no betterment charge. Once your car turns five, the rate starts at 15% and increases by 5 percentage points each year, reaching 40% for cars aged ten years and above.
Excess: The excess (the first amount you bear in any approved claim) is stated in your Certificate Schedule. In addition, a compulsory excess of RM400 applies if the driver at the time of the incident is under 21 years old, holds a Provisional (P) or Learner (L) licence, or is not named in the policy schedule. This compulsory excess does not apply to claims arising from fire, theft, third-party property damage, or bodily injury.
No-Claim Discount
For every claim-free year of cover (minimum one year of continuous coverage), you accumulate a No-Claim Discount (NCD) that reduces your contribution at renewal. The NCD scale for private cars in Malaysia is:
| Years Claim-Free | NCD |
|---|---|
| 1 | 25% |
| 2 | 30% |
| 3 | 38.33% |
| 4 | 45% |
| 5 or more | 55% |
Making a windscreen claim under the base policy forfeits your NCD. To protect your NCD on windscreen claims, you can take up Endorsement 89 (separate windscreen cover) at an additional contribution.
You can check your current NCD entitlement at https://www.mycarinfo.com.my/ncdcheck/online before renewing.
24-Hour Road Assistance
Comprehensive cover under this certificate comes with a complimentary 24-hour Bantuan IKHLAS Road Assist service, reachable at 1-800-88-1186. If your car is involved in an accident, Bantuan IKHLAS arranges towing to the nearest police station for a police report and then to a Takaful IKHLAS-approved panel workshop - all free within 150 km of the accident site. For breakdowns, free towing to your preferred workshop is available within 150 km of the breakdown site.
Beyond 150 km, an additional charge of RM2.50 per km applies and is borne by the participant.
The road assist service also covers:
- Jump start and battery replacement (cost of new battery borne by participant)
- Flat tyre change (cost of new tyre borne by participant)
- Petrol assistance (cost of petrol borne by participant)
- Chauffeured car, taxi, or car rental at special rates when your vehicle cannot be driven
How to Make a Claim
If you are involved in an accident:
- Call Bantuan IKHLAS Road Assist at 1-800-88-1186 to arrange towing to an approved panel workshop, or call the Accident Assist Call Centre (AACC) at 1-300-22-1188 or 15-500 for claim enquiries.
- Report the accident to the police within 24 hours as required by law.
- Submit all third-party letters, writs, or summons to Takaful IKHLAS as soon as you receive them.
- Do not authorise any repairs or admit liability to third parties without Takaful IKHLAS' consent.
- Track your claim status via the Go Serve Claims Portal at https://go.takaful-ikhlas.com.my/eclaim/general/inquiry.
If the third party is clearly at fault, you can also submit an own damage Knock-for-Knock (KfK) claim - your NCD will not be affected, and you can recover any excess paid from the at-fault party's insurer or takaful operator.
Optional Add-Ons
Several endorsements are available for an additional contribution:
- Special Perils - extends cover to flood, storm, landslide, and other convulsions of nature
- Windscreen (Endorsement 89) - separates windscreen claims from your NCD
- CART (Compensation for Assessed Repair Time) - pays an agreed daily rate while your car is being repaired
- Compensation for Loss of Use - covers transport costs while your car is unavailable
- Strike, Riot and Civil Commotion - extends the general exceptions to cover these events
- Legal Liability to Passengers - covers your liability for passenger injury (required if driving into Singapore)
- Legal Liability of Passengers - covers liability arising from passengers' negligent acts
- Car Accessories - separate cover for accessories not fitted as standard
- Private Hire Car Endorsement (MTD005A) - extends cover for licensed e-hailing use
- Bantuan IKHLAS Supreme Takaful - an optional add-on plan providing unlimited towing, additional personal accident cover, and an inconvenience allowance of RM500 in the event your vehicle is damaged by flood
Fees and Charges
The contribution payable is made up of:
- Base takaful contribution (determined by your vehicle's sum covered, NCD, and risk profile)
- Wakalah fee (up to 33% of total contribution; includes management expenses and agent commission)
- Service tax at prevailing rates
- Stamp duty of RM10
Cancellation and Refund
You may cancel the certificate at any time by giving written notice to Takaful IKHLAS. A pro-rata refund of the contribution for the unexpired period of cover will be provided, subject to no claims having been made under the certificate. A handling fee of RM10 applies on cancellation.
Frequently Asked Questions
What is the difference between market value and agreed value?
This policy settles total loss and theft claims based on market value - the current cost to replace your car with one of the same make, model, age, and condition at the time of loss. Agreed value policies fix a predetermined payout amount regardless of depreciation. IKHLAS Private Car Comprehensive Plus Takaful uses market value, so your payout on a total loss will reflect what your car is actually worth at that point, not what you paid for it.
Does making a windscreen claim affect my NCD?
Under the base certificate, yes - a windscreen claim will forfeit your NCD entitlement. If you want to keep your NCD intact for windscreen repairs, you can add Endorsement 89 (separate windscreen cover) to your certificate for an additional contribution. Once Endorsement 89 is in place, windscreen claims are handled separately, and your NCD is not affected.
What is the compulsory excess, and when does it apply?
The compulsory excess is an additional RM400 that you must bear on top of your scheduled excess if the driver at the time of the incident is under 21 years old, holds a P or L licence, or is not named in your policy schedule. It does not apply to fire, theft, third-party property damage, or bodily injury claims.
Can I use my car for e-hailing purposes under this takaful?
The base certificate does not cover e-hailing use. If you or an authorised driver uses the car for licensed e-hailing (such as Grab or inDrive), you need to add Endorsement MTD005A (Private Hire Car Endorsement) to your certificate. Without it, any claim arising from e-hailing use may be rejected.
What happens if my car is declared Beyond Economic Repair?
If Takaful IKHLAS determines that repairing your car is not safe or economical, your car will be declared Beyond Economic Repair (BER). The payout will be the lower of the market value at the time of loss, or the sum covered stated in your schedule. Once this payment is made, your certificate is automatically terminated.
Is flood damage covered?
Flood, storm, landslide, and other convulsions of nature are excluded under the base certificate. To cover these risks, you need to add the Special Perils endorsement, which extends your certificate to include natural disaster damage. The IKHLAS Limited Special Perils Takaful (Non-Tariff) is also available as an alternative.
How does the betterment charge work?
When new original parts are used to repair your car, Takaful IKHLAS may require you to contribute a share of the parts cost if the repairs leave your car in better condition than before the damage. The contribution rate is based on your car's age: 0% for cars under five years old, 15% for five-year-old cars, rising by 5 percentage points per year to a maximum of 40% for cars aged ten years and above.
What is Bantuan IKHLAS Supreme Takaful?
Bantuan IKHLAS Supreme Takaful is an optional add-on plan available to IKHLAS Private Car Comprehensive Plus Takaful participants. It provides unlimited towing and roadside assistance, additional personal accident cover for drivers and passengers worldwide, and an inconvenience allowance of RM500 if your vehicle is damaged by flood. Contributions start from RM120.
Can I drive into Singapore with this takaful?
The base certificate covers you in Malaysia, Singapore, and Brunei. However, Singapore law requires you to have cover for Legal Liability to Passengers (LLP) to enter Singapore. Since LLP is not included in the base certificate, you need to add Endorsement 100 before driving into Singapore.
How is the Takaful surplus distributed?
At the end of each certificate period, if the Risk Fund generates a surplus, Takaful IKHLAS takes a Surplus Performance Incentive of up to 50% of the gross distributable surplus. The remaining amount is distributed in full to participants. If the amount due to you is less than RM10, it will either remain in the Risk Fund or be donated to charity on your behalf.
