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Consumer Zone

Glossary – Motor Product

Guarantee Asset Protection (GAP) Cover

Provide an agreed indemnity that corresponds to the difference between the new markets value of the vehicle and the value of the same vehicle at the time of a total loss event. Such GAP takaful is either provided on a standalone certificate or as an optional add-on to the Motor certificate. There are 3 major variations of GAP takaful covers underwritten, which are described below:

Sub-Product Type

  1. Brief Description of the Product Key Features
    1. Guaranteed Asset Protection – Return to Invoice In the event of Total Loss or Beyond Economic Repair of the participants vehicle under Section A of the Motor Certificate, pays the difference between the Invoice Value or Purchase Price of the vehicle when it was first purchased and the market value at the time of the loss under the underlying certificate subject to the agreed certificate limit.
    2. Guaranteed Asset Protection – New Car Replacement Value In the event of Total Loss or Beyond Economic Repair of the participants vehicle under Section A of the Motor certificate, pays the difference between the Replacement Value of the new vehicle of similar make and model and the market value at the time of the loss under the underlying certificate subject to the agreed certificate limit.
    3. Guaranteed Asset Protection – Outstanding Loan In the event of Total Loss or Beyond Economic Repair participant of vehicle under Section A of the Motor certificate, pays the difference between the total loss amount and the balance of the outstanding loan at the Date of Loss up to the agreed certificate limit.
  2. Motor Accident Related Expenses

    The purpose of this takaful product is to reimburse for expenses incurred directly as a result of a Motor Accident to the participants of vehicle not normally indemnifiable under the standard Motor Certificate such as:
    1. Spray Painting of Whole Car – top up expenses to spray-paint the whole vehicle in the event of own damage repair.
    2. Reimbursement of Betterment Cost – pay for the cost of betterment that is applicable under the Motor Certificate in the event of own damage repair.
    3. Inconvenience Allowance for period whilst car is under repair in an approved authorised workshop.
  3. Tariff Motor Certificate or Endorsement

    This is standard form Motor Third Party certificate or endorsement as the case may be issued in accordance with the Motor Tariff.

    All other Motor certificates including any add-on endorsement attaching thereto issued in post-July 2016 are deemed to be Non-Tariff Motor Certificates unless otherwise provided by the regulator under the ‘Phased Liberalisation of Motor and Fire Tariffs. (reference BNM/RH/PD 029-8)
  4. Terrorism Takaful

    Terrorism Takaful if provided is generally issued as an add-on endorsement to the Motor Certificate. The coverage generally emphasizes on the following acts of terrorism:

    “Acts of Terrorism’ as a norm should include, although 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.”

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