TYPES OF COVER
ALL ENDORSEMENTS OR CLAUSES THAT ARE SEPARATELY
ATTACHED TO THIS CERTIFICATE ALSO APPLY.
In consideration of You having applied to Us to
cover Your Vehicle by an application and declaration which shall be the basis
of this contract and having paid to Us the contribution stated in the
Certificate Schedule in accordance with the laws of Malaysia, We will cover You
against loss, damage or liability as described in this Certificate occurring
during the Period of Takaful subject to the terms, conditions and endorsements
forming part of this Certificate.
SECTION I - LOSS OR DAMAGE TO YOUR VEHICLE
will cover You if Your Vehicle is damaged or lost in the following
a. by accidental collision or
b. by collision or overturning
caused by mechanical breakdown,
c. by collision or overturning
caused by wear and tear,
d. by impact damage caused by
falling objects provided no flood, typhoon, hurricane, storm, tempest, volcanic
e. landslip or other convulsion
of nature is involved,
f. by fire explosion or
g. by burglary, housebreaking or
h. by malicious act,
i. when in transit (including
its loading and unloading) by:
1. road rail inland waterway
2. direct sea route across the straits between the island
of Penang and the mainland.
a. We will at Our option
1. pay the cost of repairs to Your Vehicle, or
2. ay in cash the amount of the loss or damage to Your
3. reinstate or replace Your Vehicle.
b. The maximum amount We will
pay is the market value of Your Vehicle at the time of the loss or the sum
covered in the certificate whichever is the lower figure.
c. If Your Vehicle shall at the
of happening of any loss or damage (be it partial/ total) be covered for a sum
less than its market value then, You shall bear the rateable proportion of the
loss accordingly. Provided always that this shall not apply unless the market
value at the time of the loss exceeds the sum covered by 10%.
d. The market value of Your
Vehicle would be determined in the event of a dispute by the Head office of the
Franchise-holder and this value would be equal to the cost purchasing a
replacement Vehicle of the same make, model and age of Your Vehicle at the time
e. In the event no
Franchise-holder is available for the make of Your Vehicle, the market value of
the vehicle would be determined by a Loss Adjuster licensed under the Insurance
Act, 1963 and its subsequent legislation agreed to by both You and Us.
f. The valuation done by the
relevant Head Office of the Franchise-holder or Loss Adjuster licensed under
the Insurance Act 1963, and its subsequent legislation will be conclusive
evidence in respect of the market value of Your Vehicle in any legal
proceedings against Us.
of Damaged Vehicle
We will pay You to a maximum
RM200.00 as Towing Charges for taking Your Vehicle to either the nearest
Repairer or towing the Vehicle by returning it to Your address as shown in the
Schedule or towing it to a secure place for it to be garaged, provided Your
Vehicle has been damaged by circumstances described in this section.
to Section A
We will NOT pay
a. consequential losses of any
b. the loss of use of Your Vehicle.
c. depreciation, wear and tear,
rust and corrosion, mechanical or electrical or electronic breakdown, equipment
or computer malfunction, failures or breakages to Your Vehicle except breakages
of windscreen or windows.
d. damage to Your Vehicle’s
tyres unless Your Motor Vehicle is damaged at the same time.
e. any loss or damage caused by
or attributed to the act of cheating/criminal breach of trust by any person
within the meaning of the definition of the offence of cheating/criminal breach
of trust set out in the Penal Code.
f. the Excess stated in the
g. the failure or inability of
any equipment or any computer program to recognize or correctly to interpret or
process any date as the time or correct date or to continue to function
correctly beyond date.
SECTION II - LIABILITY TO THIRD PARTIES
will pay the amount which You or Your authorized driver are legally liable to
pay (including claimants’ costs and expenses) for:-
a. death or bodily injury to any
person except those specifically excluded under Exceptions to Section II
b. damage to property as a
result of an accident arising out of the use of Your Vehicle.
Provided Your authorized driver
also follows all the terms and conditions of the Certificate that You are
of Our Liability
Our total liability under this
Section II 1 (a) is unlimited
Our total liability Section II 1
(b) is limited to RM 3 million
in respect of any claim or
series of claims arising out of one event
for Legal Representatives
Following the death of any
person covered under this Section We will indemnify that person’s legal
representatives for liability covered under this Section, provided such legal
representative’s follow all terms and condition of the Certificate.
We will pay legal costs incurred
up to a maximum of RM 2,000.00 for defense of any charge including the charge
of causing death by driving the Motor Vehicle (other than murder) if Our prior
written agreement had been secured.
to Section II
We will NOT pay for :
a. death or bodily injury to any
passenger being carried for hire or reward.
b. death or bodily injury to any
person where such death or injury arises out of and in the course of the
employment of such person by You or by Your authorized driver.
c. damage to property belonging
to or in the custody of or control of or held in trust by You or your
authorized driver or any member of Your household under this Section.
d. liability to any person who
is a member of Your household or Your authorized driver who is a passenger in
Your Vehicle unless he/she is being carried by reason of or in pursuance of a
contract of employment.
e. any claims brought against
any person in any country in courts outside Malaysia,
the Republic of Singapore
or Negara Brunei Darussalam.
f. all legal costs and expenses
which are not incurred in or recoverable in Malaysia,
the Republic of Singapore
and Negara Brunei Darussalam.
NO CLAIM DISCOUNT
If no claim is made or arises from Your
Certificate and provided Your Vehicle is covered with Us for a continuous
period of 12 months in each of the following instances, You are entitled to a
No Claim Discount on renewal of Your Certificate as follows:-
Period of Takaful
After the first year of Takaful
After the second year of Takaful
After the third year of Takaful
After the fourth year of Takaful
After five or more years of Takaful
If more than one Motor Vehicle is described in
the Schedule the No Claims Discount shall be applied as if a separate
Certificate had been issued in respect of each Motor Vehicle. NCD is not
transferable to another owner.
AVOIDANCE OF CERTAIN TERMS AND RIGHTS OF
rights or that of any other person to recover indemnity by virtue of the
Legislation or Agreement executed between the Minister of Transport for the
Government of Malaysia and the Motor Insurer’ Bureau on March 30,1992 or the
Agreement executed between the Government of Singapore and the Motor Insurer’
Bureau of Singapore on February 22,1975 shall not be affected in any way.
in the event that We are liable to pay any monies as a result of the said
Legislation or Agreement which We would not otherwise have been liable to pay,
You shall repay to Us such monies paid by Us.
GENERAL EXCEPTIONS - THESE APPLY TO THE WHOLE
We will NOT pay for any liability under the
You or any person with Your consent are not licensed to drive the Vehicle
except if You or any person with Your consent has held and is not disqualified
from holding or obtaining such a license to drive Your Vehicle under any
required laws, by-laws and regulations.
You or Your authorized driver drives Your Vehicle whilst under the influence of
drink or drug to such an extent as to be incapable of having control of Your
loss damage or liability caused by Your Vehicle being used for an unlawful
purpose by You or by some other person with Your consent.
any loss or damage or liability is caused by invasion, war (whether war be
declared or not), warlike operation, acts of foreign enemies, hostilities,
civil war, acts of terrorism, strike, riot, civil commotion, mutiny, rebellion,
revolution, insurrection, military or usurped power or by any direct or
indirect consequences of any of the said occurrences.
the damage is caused by or arising from flood, typhoon, hurricane, storm,
tempest, volcanic eruption, earthquake, landslide, landslip or other convulsion
of nature is involved.
Your Vehicle is used for or is being tested in preparation for any Motor sport
or competition (other than treasure hunts). This includes (but is not limited
to) reliability trials, hill-climbing tests and rallies.
in the event of any accident or breakdown, Your Vehicle is left unattended
without proper precaution being taken to prevent further loss or damage and if
Your Vehicle is driven in an un-roadworthy condition before the necessary
repairs are effected, any extension of the damage or any further damage to Your
Vehicle shall be excluded from the cover granted by this Certificate.
any accident loss damage or liability caused sustained or incurred outside of Malaysia,
the Republic of Singapore
and Negara Brunei Darussalam.
any liability attaches by virtue of an agreement but for which We would not
have been liable in the absence of such agreement.
accident loss or damage to any property whatsoever or any loss or expense
resulting or arising there from or any consequential loss
Any liability of whatsoever
nature directly or indirectly caused by or contributed to by or arising from
ionizing radiations or contamination by radioactivity from any nuclear fuel or
from any nuclear waste from the combustion of nuclear fuel. For the purpose of
this exception combustion shall include any self-sustaining process of nuclear
accident loss damage or liability directly or indirectly caused by or
contributed to by or arising from nuclear weapons material.
If a law or laws are named in a section of the
policy entitled “Avoidance of certain terms and the rights of recovery” or in
Certificate Schedule under the heading of “Legislation” all references to
specific Sections of such laws are deemed to be deleted so that the references
to such law or laws are left to apply to each law in its entirety.
CONDITIONS - THESE APPLY TO THE WHOLE
- DUTY OF
If You fail to disclose to Us
fully and faithfully, all the facts which You know or ought to know, or if You
misrepresented any facts to Us before the Certificate was entered into, We may
avoid this Certificate
You must observe and fulfill the
Terms, Conditions, Endorsements, Clauses or Warranties of the Certificate.
AND CLAIMS PROCEDURES
a. We must be notified in
writing with full details as soon as possible after an event which may become
the subject of a claim under this Certificate.
b. All accidents must be
reported to the Police as required by Law.
c. Every communication writ
summons and process from other parties must be sent to Us immediately. You must
also tell Us if You know of any impending prosecution inquest or fatal inquiry
without delay. In case of theft or other act which may give rise to a claim
under this Certificate, You must without undue delay make a report to the
Police and co-operate with Us in securing the convictions of the offender.
d. No negotiation, admission or
repudiation of any claim may be entered into without Our prior written consent.
e. We shall have full discretion
in the conduct, defense and settlement of any claim.
f. No repairs may be authorized
to Your Vehicle without Our prior written consent.
g. In the event Your Vehicle is
involved in an accident and gives rise to a claim, Your Vehicle must be removed
to PIAM Approved Repairer for repairs. Failure to remove Your Vehicle to PIAM
Approved Repairer would be a breach of this condition and We shall have the
right to decline liability under Section I of the Certificate.
h. In any event giving rise to a
claim or series of claims under Section II 1 (b) of this Certificate, We may
pay to You the full amount of Our liability under Section II 1 (b) and
relinquish the conduct of any defense, settlement or proceeding and We shall
not be responsible for any damage alleged to have been caused to You in
consequence of any alleged action or omission by Us in connection with such defense
settlement or proceeding or by Us relinquishing such conduct nor shall We be
liable for any cost or expenses how whatsoever incurred by You or any claimant
or any person after We have relinquished such conduct.
a. You may cancel this Certificate
any time by notifying Us in writing and We shall be entitled to deduct a
service fee of RM 10.00 from refund of Takaful Contribution.
b. We may also cancel this
Certificate by giving You 14 days written notice by registered post to Your
last known address.
c. In case of cancellation
requested by You (provided no claim has arisen during the then current Period
of Takaful), You shall be entitled to a refund Contribution based on Our
customary pro-rata rates.
d. In case of cancellation by
Us, You shall be entitled to a pro-rata refund of the unexpired Contribution.
e. In the event of cancellation
the Original Certificate must be returned to Us before You are entitled to a
refund Takaful Contribution.
You must give Us written notice
if You have any other Takaful/Insurance covering Your Vehicle. If at the time
any claim arises under this Certificate there is any other existing
Certificate/Policy covering the same loss damage or liability, We shall only
pay Our rateable proportion of any loss damage compensation costs or expenses.
However, nothing in this condition shall impose on Us any liability from which
We would not have been subject to.
We shall be entitled if We so
desire to take over conduct at Our own expense in Your name the defense or
settlement of any claim or to prosecute in Your name for Our benefit any claim
for indemnity or damages or otherwise and We shall have absolute discretion in
the conduct of any proceedings and in the settlement of any claim and You shall
give all such information and assistance as We may require.
All differences arising out of
this Certificate shall be referred to an Arbitrator who shall be appointed in
writing by You and Us. In the event that You and We are unable to agree on who
is to be the Arbitrator within one month of being required in writing to do so
then You and We shall be entitled to appoint an Arbitrator each who shall
proceed to hear the differences together with an Umpire to be appointed by both
Arbitrators. However, this is provided that any disclaimer of liability by Us
for any claim hereunder must be referred to an Arbitrator within twelve
calendar months from date of Our disclaimer to You.
This Certificate will only
be-operative if: -
a. Any person claiming
protection has complied with all its Terms, Conditions, Endorsements, Clauses
b. You have taken all reasonable
precautions to maintain Your Vehicle in an, efficient roadworthy condition.
c. You have taken all reasonable
precautions to safeguard Your Vehicle from loss or damage.
d. You must grant Us free access
at all reasonable times to examine Your Vehicle.
For the benefit of the Account
and the Participant the Company will invest the whole contribution made to this
account according to the Syariah principles and any profit derived from the
said investment shall be distributed in accordance with the following
a. Fifty percent (50%) of the
profit to the Account and to be reinvested for the benefit of the account
b. Fifty percent (50%) of the
profit to the Company
All expenses incurred pertaining
to the operations and investment of this account shall be borne by this
- SHARE OF
NET SURPLUS (PROFIT)
If at the end of the Period of
Takaful stated in the Schedule there is the net surplus of the Motor Takaful
Account of the Company’s General Takaful Fund the Participant is entitled to
their share of the net surplus as provided for in the Application and Declaration
provided always that the Participant has not incurred any claim and/or not
received any benefits under this Certificate and/or the total amount claim made
did not exceed the Contribution made whilst it is in force.
DEFINITION OF WORDS HIGHLIGHTED IN THE
refer to Etiqa Takaful Berhad
refers to the Certificate holder and/or Participant.
Vehicle refers to the Vehicle and its accessories, including those described in
the Certificate Schedule.
refer to the standard tools of a Motor vehicle including air-conditioners and
spare tyres and may include radio/tape recorder/ compact disc player and the
like if specified in the Schedule.
refers to a Motor repair workshop under PIAM Approved Repairers Scheme.
household refers to all members of Your immediate family (i.e. Spouse, Children
including legally adopted Children, Parents, Brother and Sister).
as defined in the Penal Code is as follows:-
Whoever, by deceiving any
person, fraudulently or dishonestly induces the person so deceived to deliver
any property to any person or to consent that any person shall retain any
property, or intentionally induces the person so deceived to do or omit to do
anything which he would not do or omit if he were not so deceived, and which
act or omission causes or is likely to cause damage or harm to that person in
body, mind, reputation or property, is said to ‘cheat’.
breach of trust as defined in the Penal Code is as follows:-
Whoever, being in any manner
entrusted with property, or with any dominion over property, dishonestly
misappropriates or converts to his own use that property, or dishonestly uses
or disposes of that property in violation of any direction of law prescribing
the mode in which such trust is to be discharged, or of any legal contract,
express or implied, which he has made touching the discharge of such trust, or
willfully suffers any other person so to do, commits “criminal breach of
of terrorism means
An act, including but not
limited to the use of force or violence and/or the threat thereof, of any
person or group(s) of persons, whether acting alone or on behalf of or in
connection with any organisation(s) or government(s), committed for political,
religious, ideological or similar purposes including the intention to influence
any government and/or to put the public or any section of the public, in fear.
IMPORTANT NOTICE TO CERTIFICATE HOLDER
· You are hereby advised to read through the
Certificate carefully and if it has not been issued in accordance with your
intention, kindly return same to the Company for alteration immediately.
· Please keep this Certificate in a safe place as
reference will be made to this document in endorsements and renewals
· Any Contribution paid to Your Takaful
agent/broker is not deemed to be payment to the Company for the purpose of the
· Please note that if this Takaful is transacted
through your Takaful agent/broker, the agent/broker is acting on your behalf
for the purpose of formation of this contract of Takaful. It is important that
you ensure your Takaful agent/broker remits your contribution to the Company in
strict compliance with the provisions of the CBC Regulation.
· Kindly observe the CBC Regulation.