Since the premium is exactly the same for the same coverage between Etiqa Car Insurance and Etiqa Car Takaful, why doesn’t everyone go for the Takaful option since the Takaful option typically results in a surplus sharing rebate of around 5%?

What is holding everyone back from completely ditching Etiqa Car Insurance?
Why does Etiqa Car Insurance exist?
Is there a downside to buying Etiqa Car Takaful?
Are non-Muslims worse off getting the Takaful option?

This post has been edited by contestchris: Feb 15 2024, 02:23 PM

I use Takaful Malaysia

same here

One of the year, a few years ago, I've mistakenly bought Etiqa Car insurance.

I still get the surplus rebate at the end of the year.

I guess the only difference, between takaful & non takaful, is where the money pool is invested. Shariah compliant investments vs non Shariah compliant.

Anybody could buy either one & benefit from either one regardless.

I buy takaful and non takaful also never get any rebate back.

Lol which company u buy?

iinm not all companies gives csshback. I only know Takaful Malaysia got.
Now i know Etiqa also got

This post has been edited by WaCKy-Angel: Feb 15 2024, 03:56 PM

All Takaful companies must give cashback for any insurance product, as long as their risk fund makes a profit in the year. Only exception if you made a claim during the year.

Etiqa Car Insurance has no cashback. They retain all profit for their shareholders fund.

Please provide proof to back your claim.

Ooo didnt know that.

What about medical card and life policy?

Yes have also. But it varies as to how much in % terms. All profits must be shared 50/50 between policyholders and Takaful operator.

Don't need to, you are right.

The cash back description I received does not tally with the Etiqa policy number for the car insurance.

Must have been for some other etiqa products

i got RM34 cashback for my Takaful Malaysia car insureance

Premium amount?

So confirmed Takaful better right? Last time I live chat ask for differences they said only the term are different where the cost and everything the same.

Seems like they gave wrong info

I also don't know that's why I'm asking.

I have been using the non-takaful for years, only rebate I get is from the add on Drive Less Save More because my covered distance is relatively short

So can I assume that your confirmation is based solely on your live chat wherein what they said that the term(s) is/are different, whereas the costs and everything else remain the same, without them actually showing you their actual offer ? What I find strange is, you took their word for it and here you start with a question "So confirm Takaful is better right ?" Then you end with "Seems like they gave wrong info."

This post has been edited by Roman Catholic: Feb 15 2024, 11:12 PM

Of course I took their word for it assuming it is the same then bumped in to this thread today and that's also reason why I asked a question here to find out.

Even their FAQ stated that way https://motortakaful.com/faq

"While the end goals of insurance and takaful are similar (to provide financial cover against risk such as accidents), there are subtle but important differences between the two concepts. While conventional insurance is governed purely for commercial considerations, the takaful system is based on mutual co-operation and shared responsibility. Governed by the Syariah Advisory Council, it must therefore adhere to certain Islamic principles - most importantly of which it must be free from elements of gharar (uncertainty) in respect of contribution and coverage, maisir (gambling) and riba (interest)."

This post has been edited by zero5177: Feb 15 2024, 11:54 PM

Advise, next time look carefully on their insurance offers and then decide which izzit you want to pay.

governed by Shariah Council, means anything to do will refer to Syariah Court?
then I better skip.
small cash back only but the rules/law applied might be different.

Depends on your mileage... I just started this year (dec 2023) and need to install etiqa app to report mileage. Low mileage can get cashback. Havent updated my reading yet. I think insurers still think it's worth offering Cashback so that customer will return plus they won't file silly claims.

Used flexidrive from AXA before and not only get cashback but also gps monitoring which is nice. Too bad they discontinued it. Also used promilej last year but they increase their premium a lot this year thus switching to etiqa.

I got it before. Likely not every year but I might be wrong too coz nowadays they auto credit bank acc instead of sending check.

RM2,300 plus

Well I did look carefully, just I really did not notice the differences, hence I double confirm via Live Chat.

Asking for some spoonfeed here like for this Etiqa Vs Takaful where you find the differences in term of cost & return? Because all I understand is Takaful tweaked the term to be more muslim compatible while everything work the same.