What is Zurich Z-Rider Takaful?
If you are looking for motorcycle protection that fits your values, Zurich Z-Rider Takaful is worth a look. It is a Shariah-compliant takaful certificate, which means instead of paying a premium to an insurer, you and other participants contribute to a shared General Takaful Fund (GTF). When someone makes a claim, it is paid from that pool. If the fund ends the year with money left over, that surplus is shared back with participants who did not make any claims, which is something conventional motor insurance does not offer.
In terms of what it covers day to day, it works much the same as a standard motorcycle insurance policy.
Which cover level should I get?
| Cover type | What it covers |
| Comprehensive | Accidental damage, fire, theft, and third-party liability for injury, death, and property damage |
| Third Party, Fire & Theft | Fire damage and theft, plus third-party liability, but not accidental damage to your own bike |
| Third Party | Third-party liability only: injury, death, and property damage you cause to others |
Third-party cover is the legal minimum for any motorcycle on Malaysian roads. It only protects other people, not your motorcycle. If your bike gets damaged in an accident, you pay for repairs yourself unless you have comprehensive or TPFT cover. Whether the upgrade is worth it comes down to your bike's value and how much you could absorb out of pocket if something happened.
One thing to check before you buy: make sure your sum covered matches your motorcycle's current market value. If it is lower by more than 10%, Zurich Takaful will only pay your claim in proportion to the shortfall. For example, if your bike is worth RM10,000 but you only covered it for RM8,000, a RM3,000 repair claim would pay out RM2,400, not the full amount. You bear the rest.
Who can ride my motorcycle under this certificate?
This depends on whether you choose Single Rider or All Riders cover. Single Rider covers only the named participant. All Riders covers anyone who rides your motorcycle with your permission, as long as they hold a valid licence for the relevant class and comply with the certificate conditions. Most riders choose All Riders since lending motorcycles to family and friends is common in Malaysia.
What add-ons are available?
| Add-on | Cost |
| Legal liability to pillion | RM15 |
| Special perils (flood and landslide) | RM10 |
| Strike, riot, and civil commotion | 0.3% of vehicle sum covered |
| Personal accident (participant), sum covered RM4,000 to RM20,000 | RM6 to RM30 |
| Personal accident (authorised rider and pillion), sum covered RM5,500 | RM10 |
| Hospital income (participant), sum covered RM9,000 | RM5 |
| Hospital income (authorised rider), sum covered RM9,000 | RM5 |
| Waiver of betterment | RM5 |
| Waiver of compulsory excess | RM4 |
| Extension of cover to Thailand | 20% of contribution after NCD |
A few are easy to overlook. The pillion liability add-on matters if you carry passengers regularly, since the base certificate does not cover them. If you plan to ride into Singapore, Singapore law requires pillion liability cover, so you will need to add this before crossing the border. And given how frequently parts of Malaysia flood, the RM10 special perils add-on is worth considering.
The betterment waiver is also worth understanding. If your bike is five years or older and needs new original parts after an accident, Zurich Takaful will normally deduct a percentage of the parts cost based on your bike's age: 15% at five years, rising to 40% at ten years and above. The waiver removes that deduction for RM5.
What is not covered?
The base certificate will not pay out for:
- Riding under the influence of drugs or alcohol, or any other illegal act
- Cheating or criminal breach of trust
- Your own death or bodily injury from a motor incident (add personal accident cover for this)
- Injury claims from your pillion passenger (add legal liability to pillion cover)
- Flood, landslide, or storm damage (add special perils cover)
- Riding outside Malaysia, Singapore, and Brunei (add the Thailand extension for cross-border trips)
- Loss of use, consequential losses, or tyre damage unless other parts of the bike are damaged at the same time
- Loss of electronic data
How does the No Claim Discount work?
If you complete a full year without making a claim, your contribution drops at each renewal:
| Claim-free years | NCD Entitlement |
| After 1 year | 15% |
| After 2 years | 20% |
| After 3 years | 25% (maximum) |
One claim resets your NCD to zero at the next renewal. Your NCD is personal to you and cannot be transferred to a new owner if you sell your motorcycle. You can check your current NCD entitlement at mycarinfo.com.my before renewing
How is my contribution calculated?
Your base contribution depends on your motorcycle's make, model, engine size, age, and market value, along with your own age and NCD entitlement. Two fixed charges apply on top:
- Service Tax: 8% of gross contribution
- Stamp Duty: RM10
A Wakalah fee of 29.5% of the contribution is also charged upfront. This covers Zurich Takaful's management expenses (19.5%) and agent commission (10%) for administering the certificate on your behalf.
Cover does not begin until Zurich Takaful receives your contribution. Keep your receipt as proof.
What happens to any surplus in the fund?
If the GTF records a net surplus at the end of the financial year, 50% is distributed to eligible participants as a conditional gift (Hibah). To qualify, you must not have made any claims during the coverage period, and your certificate must have been for a full year and expired within the declared financial year. The remaining 50% goes to Zurich Takaful as a performance reward (Ju'alah) for managing the fund.
If the fund runs into a deficit, Zurich Takaful provides an interest-free loan (Qard) to cover it, repaid when the fund returns to surplus.
Any amount below RM10 arising from surplus distribution, cancellation, or claims that cannot be paid electronically will be channelled to charity, unless you submit a formal request otherwise.
How do I make a claim?
Notify Zurich Takaful within 7 days of the incident. If you are physically disabled or hospitalised as a result, you have 30 days. You can reach them through:
- Call 24-hour Roadside Assistance: 1-300-88-5566
- WhatsApp your location to: 03-2109 6845
- Submit an e-Request at zurich.carfix.my
You must also report the incident to the police as required by law. For own-damage claims, your motorcycle must go to an authorised Zurich panel workshop before any repairs begin. Repairs done elsewhere, or without Zurich Takaful's written consent, will not be covered.
Do not admit liability or negotiate with any third party without Zurich Takaful's consent.
What are the claim limits?
- Third-party bodily injury or death: unlimited
- Third-party property damage: up to RM3 million per incident
- Legal costs (if charged for dangerous or careless riding): up to RM2,000
- Base towing to nearest approved workshop or safe place: up to RM50
Can I cancel early?
Yes. Send a written notice to Zurich Takaful and return your original Certificate of Takaful. If you have lost it, a Statutory Declaration will do.
For continuous renewals or replacements with a new Zurich Takaful certificate within 12 months, the refund is on a pro-rata basis. In all other cases, the short-period scale applies:
| Period covered | Refund |
| Up to 1 week | 87.5% of total contribution |
| Up to 1 month | 75.0% |
| Up to 2 months | 62.5% |
| Up to 3 months | 50.0% |
| Up to 4 months | 37.5% |
| Up to 6 months | 25.0% |
| Up to 8 months | 12.5% |
| More than 8 months | No refund |
No refund if a claim has been made, or if you paid the minimum contribution.
What if I have a dispute?
If your dispute involves RM250,000 or less, you can refer it to the Financial Markets Ombudsman Service (FMOS) at fmos.org.my. For amounts above RM250,000, disputes go to arbitration. You can also contact Bank Negara Malaysia through BNMLINK at 1-300-88-5465.
