What Is Z-Driver Takaful?
Z-Driver Takaful is a private car motor takaful certificate from Zurich General Takaful Malaysia Berhad. Like a conventional comprehensive car insurance plan, it covers accidental damage, fire, theft, and third party liability but it runs on Shariah principles. Contributions go into a General Takaful Fund (GTF) under the Tabarru' (donation) concept, and Zurich manages the fund under a Wakalah arrangement, charging a Wakalah fee of 29.5% of the gross contribution.
One thing that separates takaful from conventional insurance: if the fund records a net surplus at year-end, participants who made no claims share 50% of that surplus as Hibah (gift). The remaining 50% goes to Zurich as Ju'alah. This is not guaranteed, it depends on how the fund performs across all participants.
The certificate covers private cars only and is valid for one year, renewable annually. The territorial limit is Malaysia, Singapore, and Brunei.
Which Plan Tier Should I Choose?
Z-Driver Takaful comes in three Comprehensive plan tiers: base Comprehensive, Essential, and Premier. Third Party, Fire & Theft and basic Third Party are also available.
The base Comprehensive plan covers own vehicle damage, third party liability, and basic windscreen. Most of the useful add-ons such as flood cover, passengers liability, key replacement need to be purchased separately on this tier.
Essential bundles the most commonly purchased add-ons into one plan. Flood and landslide cover (special perils) for petrol engine cars, enhanced windscreen cover (so your NCD stays intact after a windscreen claim), key replacement, and legal liability of passengers for negligent acts are all included.
Premier has everything in Essential, plus a full Waiver of Compulsory Excess. That RM400 compulsory excess which normally applies whenever someone under 21, a P or L licence holder, or an unnamed driver is behind the wheel is waived entirely. If you regularly let different people drive your car, Premier removes a cost you would otherwise absorb on every own damage claim.
What Does Z-Driver Takaful Actually Cover?
Under Comprehensive cover, own vehicle damage includes accidental collision, overturning, fire, explosion, theft, malicious acts, windscreen breakage, and damage while being transported (ferry, rail, road). Flood and other natural perils are excluded unless you add special perils cover, or you are on the Essential or Premier plan.
Third party liability is unlimited for death or bodily injury, and up to RM3 million for third party property damage. If you are charged with reckless or dangerous driving following the incident, Zurich covers legal defence costs up to RM2,000 with prior written approval.
Third Party, Fire & Theft covers fire, theft, and third party liability (same unlimited and RM3 million limits), but nothing for accidental damage to your own car.
What Add-Ons Are Worth Knowing About?
Unlimited named drivers at no extra cost. All three Comprehensive plan tiers include complimentary coverage extension for unlimited named drivers under private use. Most insurers charge a fee per additional named driver — Z-Driver Takaful does not.
Flood cover for RM100/year on a RM50,000 car. The Special Perils add-on covers flood, landslide, earthquake, storm, and other natural perils. The tariff rate is 0.2% of the vehicle's sum covered, and Zurich applies a 60% discount off that, making the effective cost significantly lower. Based on the PDS illustration: RM100 for a RM50,000 car, annually. The Essential and Premier plans include this automatically for petrol engine cars.
Flood towing and cleaning, separately. Even with special perils cover, the physical cost of towing and cleaning a flood-damaged car is covered under a separate add-on. It reimburses up to RM5,000 for those costs, starting from RM10/year for RM1,000 of cover, or RM55/year for RM5,000 of cover.
Personal accident cover up to RM175,000. The Personal Accident Basic add-on covers the participant for accidental death and permanent disablement. It is sold in units of RM35,000 sum covered at RM15 per unit per year, up to five units. So RM75/year gets you RM175,000 coverage.
Voluntary excess discount up to 20%. Agreeing to pay more out of pocket per claim reduces your contribution. A RM1,000 voluntary excess knocks 5% off your contribution (after NCD); RM5,000 voluntary excess knocks off 20%. Useful if you rarely claim and want to lower your annual cost.
Discount for lower-risk drivers. Zurich offers up to 10% off contributions for certain driver profiles — cautious drivers, lady drivers, and SUV owners, among others.
EV Protect for electric vehicle owners. A packaged add-on that covers the home wall charger (up to RM15,000 all-risk), personal liability when using EV chargers (up to RM50,000), portable charging cable (up to RM2,000), and compassionate cover for damage at public charging stations (up to RM20,000). A separate EV Special Perils extension also covers EV battery damage from water ingression caused by covered perils.
What Does the 24/7 Roadside Assistance Cover?
Zurich Roadside Assistance is included free with all Comprehensive private car certificates. Call 1-300-88-5566 or WhatsApp +603-7989 0345 any time of day or night.
For breakdowns, Zurich pays up to one hour of roadside labour to get you moving on the spot. If the car cannot be repaired on the road, it will be towed to your preferred workshop — up to 150 km for new certificates, or 300 km for renewals (round-trip, annual limit). With the Z-Drive Assist add-on, the towing limit becomes unlimited.
For accidents where you intend to make an own damage claim, Zurich will tow your car to the police station and then to the nearest Approved Repairer, up to the per-incident towing limit in your certificate. Towing beyond the covered distance costs approximately RM5.00/km, and toll charges are also borne by you.
Two further services are available on request: if you are stranded far from home, Zurich can help organise alternative transport so you can continue your journey. In any emergency, Zurich can also relay information to a nominated emergency contact on your behalf.
Do note that Zurich is not responsible if the emergency contact cannot be reached. Parts, consumables (battery, engine oil, fuel), and non-vehicle expenses such as taxi fares are not covered under the roadside assistance programme.
The Zurich Courtesy Car Programme (1-300-88-1323, Mon–Fri 9AM–6PM, Sat 9AM–1PM) is separate — contact this line if you need a replacement vehicle while yours is being repaired.
How Is My Contribution Calculated?
Your contribution is based on your car's sum covered, its age, your NCD entitlement, the plan tier you choose, and any add-ons selected. To illustrate: the PDS example shows a RM50,000 sum covered car, no NCD, with flood cover, enhanced windscreen, and passengers liability add-ons — the gross contribution comes to RM2,240.40. Add 8% Service Tax (RM179.23) and RM10 stamp duty, and the total is RM2,429.63 per year.
Of that gross contribution, 29.5% goes to the Wakalah fee — split between 10% commission and 19.5% management expenses. The remainder goes into the GTF as your Tabarru'.
Cover only starts once full payment is received. Accepted payment methods are debit card, credit card, and online payment.
What Is Betterment, and Can I Avoid It?
If your car is repaired using new original parts and ends up in better condition than it was before the damage, Zurich will ask you to contribute a portion of the parts cost. The amount depends on your car's age: cars under five years old pay nothing. From five years onwards, the rate scales from 15% up to 40% for cars ten years and older.
A Waiver of Betterment endorsement removes this charge entirely. It costs RM200 for cars aged 4–7 years, RM350 for 8–11 years, and RM400 for 12–15 years. If your car is getting older and you want a predictable repair bill with no surprise top-ups, this add-on is worth considering.
Who Can Buy This Certificate, and What Are the Conditions?
Z-Driver Takaful is for private car owners. To participate, you need to have a takaful interest in the vehicle, meaning you own it or have a financial stake in it. You must disclose all material facts at the time of application: past accidents, engine modifications, how the car will be used, the car's age and model, your NCD entitlement, and your driving history. Non-disclosure or misrepresentation can result in the certificate being voided.
The certificate covers private use only such as social, domestic, pleasure, and the participant's own business travel. Using the car as a private taxi, hire car, or to carry goods for trade requires a different certificate type. E-hailing drivers must add the E-Hailing Private Hire Car endorsement.
After an accident, report it to the police within 24 hours and notify Zurich within 7 days. Own damage claims must go to a Zurich Approved Repairer because repairs done at a non-panel workshop without Zurich's prior approval may be refused.
PIDM Protection
The benefits payable under Z-Driver Takaful are protected by PIDM (Perbadanan Insurans Deposit Malaysia) up to certain limits under the Takaful and Insurance Benefits Protection System (TIPS). For details, refer to PIDM's TIPS brochure at www.pidm.gov.my or on Zurich's website.
Frequently Asked Questions
Does Z-Driver Takaful cover flood damage?
Not under the base Comprehensive or Third Party, Fire & Theft certificate. Flood falls under "convulsions of nature" and is excluded by default. Add the Special Perils endorsement (0.2% of sum covered with 60% tariff discount applied) to cover it, or choose the Essential or Premier plan, which includes special perils for petrol engine cars automatically. A separate Towing and Cleaning due to Water Damage add-on covers towing and cleaning costs specifically — it starts from RM10/year for RM1,000 of cover.
How many named drivers can I add, and what does it cost?
Unlimited, at no extra charge, on all Comprehensive plan tiers. There is no fee to add family members or other regular drivers to the certificate.
What is the RM400 Compulsory Excess?
Zurich deducts an additional RM400 from any own damage claim where the driver at the time of the incident is under 21 years old, holds a P or L licence, or is not named in the certificate schedule. This is on top of the standard excess stated in your schedule. Under the Premier plan, this RM400 compulsory excess is waived for all drivers.
What happens if my car is stolen or declared beyond economic repair?
Zurich pays the lower of your sum covered or the market value at time of loss. This means insuring at the correct market value matters — if your sum covered is more than 10% below the actual market value, your payout will be reduced proportionally. Market value is determined using the ISM Automotive Business Intelligence System (ISM-ABI).
Will a windscreen claim affect my NCD?
Under the base Comprehensive certificate, yes — a windscreen claim will forfeit your NCD for that year unless you have the enhanced windscreen endorsement (Endorsement 89, 89a, or 89b). Under the Enhanced Windscreen Cover included in Essential and Premier plans, your NCD is not affected. Instead, your windscreen sum covered is reduced by the claim amount, and you can reinstate it at a pro-rated contribution if needed.
Can I use my car for e-hailing with this certificate?
No — private hire or reward use is excluded from the standard certificate. To drive for e-hailing platforms, add the E-Hailing Private Hire Car endorsement. The annual rate is 170% of your contribution after NCD, or RM7.50 per day (after SST, effective 1 Oct 2025). The endorsement also adds RM50,000 personal accident cover for the authorised e-hailing driver, covering accidental death, permanent total disablement, and a weekly benefit for up to 26 weeks.
Can I get a refund if I cancel my certificate early?
Yes, under most circumstances. If you have been continuously renewing with Zurich, or if you are replacing the certificate with a new one within 12 months, the refund is on a pro-rata basis. For a brand-new certificate cancelled within 12 months, the refund follows a short-period scale instead. No refund is given if a claim has already been made or if minimum contribution was charged.
Do claim-free participants get anything back?
Under the takaful structure, yes — potentially. If the General Takaful Fund produces a net surplus at year-end, 50% is distributed proportionately to retail participants who made no claims during the year, as Hibah (gift). This is not guaranteed and depends on the fund's overall claims experience for that year.
How do I check my NCD before renewing?
Visit mycarinfo.com.my/ncdcheck/online to check your current NCD entitlement. You can also ask Zurich directly at 1300-888-622.
Is Z-Driver Takaful covered by PIDM?
Yes. Benefits payable under this certificate are protected by PIDM under the Takaful and Insurance Benefits Protection System (TIPS), up to the applicable limits. Refer to PIDM's TIPS brochure or visit pidm.gov.my for details.
More Informations
For more informations, check out the following documents:
- Z-Driver Takaful Product Disclosure Sheet
- Z-Driver Takaful Certificate Wording
- Zurich Roadside Assistance
