What is Zurich Z-Rider Takaful?
It is a Shariah-compliant motorcycle takaful plan offered by Zurich General Takaful Malaysia Berhad.
It operates on a mutual assistance model, in which participants contribute to a General Takaful Fund (GTF), and claims are paid from this pooled fund. Any surplus at the end of the financial year is distributed back to eligible participants who did not make a claim, based on the Hibah (gift) principle.
The plan is designed for motorcycle owners who need basic protection without overcomplicating things. You choose between two cover types: Comprehensive (which covers your own motorcycle against accidental damage, fire and theft, plus third-party liability) or Third Party, Fire and Theft (which protects you from third-party claims and covers your own motorcycle only for fire, explosion or theft; accidental own damage is excluded).
One feature worth noting: Zurich offers lower contribution rates to safer riders. This is reflected in the No Claim Discount (NCD) system, which rewards claim-free years with a discount at renewal — up to 25% after three consecutive claim-free years.
The plan also covers you within Malaysia, Singapore and Brunei at no extra charge. Riding into Thailand is possible with an add-on (Endorsement 101), subject to a RM100,000 limit for property damage liability only.
What is the applicable Shariah concept?
Z-Rider Takaful uses several Shariah concepts that differ from conventional insurance:
- Tabarru', where a portion of your contribution is donated to the GTF for mutual assistance among participants.
- Wakalah, where Zurich manages the GTF on your behalf and charges a Wakalah fee (29.5% of the gross contribution) covering commission and management expenses.
- Hibah, where if a surplus arises in the GTF at year-end, 50% is shared among eligible participants who made no claim during the period.
- Qard, where if the GTF runs into a deficit (not due to Zurich's negligence), Zurich provides an interest-free loan to cover the shortfall, repaid from future surpluses.
What does it cover?
Under Comprehensive cover, Z-Rider Takaful protects your motorcycle against:
- Accidental collision or overturning (including due to mechanical breakdown or wear and tear)
- Fire, explosion or lightning
- Burglary, housebreaking or theft
- Malicious acts
- Damage while in transit (by road, rail, inland waterway, or ferry between Penang island and the mainland)
Third-party liability coverage includes unlimited cover for death or bodily injury to third parties, and up to RM3 million for third-party property damage. Legal costs of up to RM2,000 are also covered if you face charges under the Road Transport Act 1987.
Standard towing to the nearest approved repairer is covered up to RM50 per incident. With the optional 'Increase Limit for Accident Towing Cost' add-on, this goes up to RM100.
What is not covered?
Several situations are excluded from coverage regardless of your plan type:
- Loss of use of the motorcycle (rental costs, travelling expenses while your bike is under repair)
- Flood, storm, earthquake and other natural disasters (unless Endorsement 57 is added)
- Damage to tyres only (unless other parts are also damaged at the same time)
- Theft of accessories or parts when the motorcycle itself is not also stolen
- Riding under the influence of alcohol or drugs
- Racing, rallies or use on any racetrack
- Use outside Malaysia, Singapore and Brunei (unless add-on purchased for Thailand)
- Riding without a valid licence (expired licence may still be covered if rider is not disqualified)
- Hire and reward use (e-hailing, rental) without specific endorsement
Are there any optional add-ons available?
- Pillion Liability (Endorsement 108): Required if you're riding into Singapore
- Special Perils (Flood, Earthquake, Storm (Endorsement 57)): RM10/year
- Strike, Riot and Civil Commotion (Endorsement 25): 0.3% of vehicle sum covered
- Personal Accident Basic — Participant (Endorsement 200/288): From RM6/year (sum covered: RM4,000) up to RM30/year (RM20,000)
- Personal Accident — Authorised Rider & Pillion (Endorsement 282): RM10/year (sum covered: RM5,500)
- Hospital Income — Participant (Endorsement 283): RM5/year (sum covered: RM9,000)
- Hospital Income — Authorised Rider (Endorsement 284): RM5/year (sum covered: RM9,000)
- Waiver of Betterment (Endorsement 280): RM5/year — waives your contribution to betterment costs for motorcycles aged 5–10 years
- Waiver of Compulsory Excess (Endorsement 281): RM4/year — waives the compulsory excess for Section A claims
- Extension to Thailand (Endorsement 101): 20% of contribution after NCD — covers Section A and property damage up to RM100,000 in Thailand
- Non-standard Accessories (Endorsement 97): Contribution varies — covers accessories not factory-fitted
- Agreed Value Clause (Endorsement 87): Additional contribution — fixes settlement at agreed value, not market value at time of loss
- Z-Rider Plus Bundle (below 250cc only): 50% of basic contribution; includes Special Perils Allowance (RM1,000), Accident Towing up to RM100, Breakdown Towing (60km) and Personal Accident (RM5,500)
- CyclePAC Takaful (separate plan): From RM13/year — adds Rider PA (up to 2 additional named riders) and Pillion PA; no underwriting required; ages 16–80 are eligible
For more details, check out the product disclosure sheet.
Should I choose a single rider or an all-riders cover?
When you take up Z-Rider Takaful, you choose between two rider coverage arrangements.
For a single-rider coverage, only the named participant (typically the registered owner) is protected. If someone else rides the motorcycle and is involved in an accident, there is no takaful cover.
For all-riders coverage, any person riding the motorcycle with the owner's permission is covered, provided they hold a valid licence for the relevant class and comply with the certificate's terms and conditions. This option costs an additional 50% of the basic contribution.
Most riders in Malaysia opt for 'All-Riders' cover since lending motorcycles to family members is common. If you are on 'Single Rider' and your motorcycle is ridden by someone else during an incident, your claim will be rejected.
How do I make a claim?
If your motorcycle is involved in an incident, here is what you need to do:
- Notify Zurich within 7 days of the incident (or 30 days if you are physically disabled or hospitalised as a result).
- Report the accident to the police as required by law.
- Submit the completed claim form within 21 days of notification.
- Send your motorcycle to an Approved Repairer (panel workshop) for inspection before any repair work begins.
- Do not admit liability, negotiate or settle any third-party claim without Zurich's written consent.
For roadside assistance, call 1-300-88-5566 or WhatsApp to 03-2109 6845. You can also submit claims online at zurich.carfix.my.
However, if you send your motorcycle to a non-panel workshop without prior approval from Zurich, your claim for own damage under Section A may be rejected entirely.
How do the cancellations and refunds work?
You can cancel your Z-Rider Takaful certificate at any time by returning the original Certificate of Takaful (CT) to Zurich, or submitting a Statutory Declaration if the CT is lost.
Refunds are calculated on a short-period basis if you are a new participant, or pro-rate if the certificate has been continuously renewed. No refund is available if you have paid only the minimum contribution or if a claim has already been made on the certificate.
Zurich can also cancel the certificate by giving 14 days' written notice to your last known address, with a pro-rate refund for the remaining period.
Small amounts below RM10 arising from cancellation or surplus distribution that cannot be made via electronic payment will be channelled to charity, in accordance with Zurich's Shariah Committee-approved policy.
PIDM Protection
The benefits payable under Z-Rider 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 (FAQs)
Find out the answers to the most common questions about motorcycle insurance below.
Is Z-Rider Takaful the same as conventional motorcycle insurance?
Not exactly. Z-Rider Takaful is a Shariah-compliant product based on mutual assistance (Takaful). Instead of paying a premium to an insurer in exchange for risk transfer, you contribute to a shared fund (the GTF). If there is a surplus in the fund at year-end, eligible participants who made no claims may receive a portion of it as Hibah (a gift). Conventional insurance does not have this surplus-sharing feature.
What is the maximum NCD I can get?
The maximum NCD for Z-Rider Takaful is 25%, earned after three consecutive claim-free years. The scale is: 15% after year 1, 20% after year 2, and 25% from year 3 onwards. Making a claim resets your NCD to zero at the next renewal.
Can my family members ride my motorcycle under this takaful?
Yes, but only if you have selected 'All-Riders' cover. Under this option, any person riding with your permission and holding a valid licence of the relevant class is covered. Under the 'Single Rider' cover, only the named participant is covered, so if someone else is riding when an incident occurs, there is no coverage.
Does Z-Rider Takaful cover flood damage?
No, not by default. Flood, storm, earthquake, landslide and other natural disasters are excluded under the standard certificate (for both Comprehensive and TPFT). You can add Endorsement 57 (Inclusion of Special Perils) for an additional contribution to cover these events. Alternatively, the Z-Rider Plus bundle (for motorcycles below 250cc) includes a Limited Special Perils Allowance of up to RM1,000.
Do I need to cover my pillion passenger separately?
Yes. Legal liability to pillion passengers is not included in the basic certificate. You need to add Endorsement 108: Legal Liability to Pillion for an additional contribution. This is also a legal requirement if you are riding into Singapore, as Singapore's laws mandate coverage for pillion liability.
What happens if I ride my motorcycle outside Malaysia?
Your certificate automatically covers you in Malaysia, Singapore and Brunei. If you plan to ride into Thailand, you will need to purchase Endorsement 101 (Extension of Cover to the Kingdom of Thailand), which covers accidental damage to your own motorcycle and property damage liability up to RM100,000 in Thailand. Bodily injury liability to third parties is not covered in Thailand under this endorsement.
What is the compulsory excess, and can I waive it?
The compulsory excess is the first amount you must bear for each approved claim under Section A (own damage). The exact amount is shown in your Certificate Schedule and varies by profile. You can waive this by adding Endorsement 281: Waiver of Compulsory Excess for RM4 per year. Note that the excess does not apply to fire, theft, third-party property or bodily injury claims.
Can I cancel my certificate midway through the year and get a refund?
Yes. If you cancel before 8 months of cover, you are entitled to a partial refund on a short-period scale (ranging from 87.5% for cancellations within the first week down to 12.5% for cancellations before 8 months). There is no refund if you have exceeded 8 months, paid only the minimum contribution, or if a claim has been made.
Is my motorcycle covered at market value or agreed value?
By default, Z-Rider Takaful settles claims based on market value, which is the current cost of replacing your motorcycle with one of the same make, model, age and general condition at the time of loss. If you want a fixed agreed value instead, you can opt for Endorsement 87: Agreed Value Clause for an additional contribution. It is important to ensure your sum covered reflects the actual market value of your motorcycle to avoid under-coverage penalties.
For more details, check out the following documents.
