Motor FAQS

A motor takaful plan covers against loss or damage to your own vehicle against accidental loss and/or damage and/or theft including legal liability to the third parties, arising out of the use of the motor vehicles, belonging to the participant.

Comprehensive: This protects you against accidental loss and/or damage and/or theft including legal liability to the third parties, arising out of the use of the motor vehicles, belonging to the participant.

Third party: This protects you against the third party’s death, bodily injury and/or property damage.

Who is a third party?: A third party is a person who is injured or has suffered loss or damage arising from an accident involving your motor vehicle. A third party may be a pedestrian, a driver or passengers in another vehicle. The first party to a motor takaful plan is you as the vehicle owner and the second party is the takaful operator.

The takaful operator may, as stated in the certificate, impose deductible on the motor takaful plan. Deductible is the amount of loss you have to bear before the takaful operator will pay for the balance of your claim. In other words, the deductible amount will be deducted before the final claim payment. Example: If the amount of deductible is Rs1,000 and the amount of claim is Rs1,500, the takaful operator will only pay you Rs500.

The takaful operator may apply a loading on your contribution to ensure that the amount charged is commensurate with the risk of the participants. The most commonly used loading factors are your age, any adverse driver characteristics, cubic capacity, specific claims experience of your vehicle and re-conditioned vehicles.

The takaful cover will compensate your loss by putting you back to the same financial position as you were in immediately before the loss. You cannot profit from a motor takaful claim.

Depreciation occurs when, in the course of repairing an accident vehicle, an old part is replaced with a completely new one. For example, if your old bumper is replaced with a new one, you have to bear the difference in cost between the old and new bumper, in line with the principle of indemnity. This is because your contribution to the takaful plan is based on the amount covered. This amount, in turn, depends on the value of your vehicle, which will usually be lower than a new one.


• Your own death or bodily injury due to a motor accident

• Damage to tyres unless the vehicle is damaged at the same time

• Consequential loss, depreciation, wear and tear, rust and corrosion, mechanical or electronic breakdowns, failures or breakages, equipment or computer malfunction

• Loss, damage or liability occurring outside the geographical area

• Loss or damage caused by or due to cheating or criminal breach of trust

• Loss, damage or liability arising from an act of nature, i.e. flood, storm or landslide

• If you or any person with your consent is not licensed to drive the vehicle

• If you or the authorised driver drives the vehicle whilst under the influence of alcohol or drugs

• Loss, damage or liability caused by the vehicle being used for an unlawful purpose

• If the vehicle is used for or is prepared for any motor sport or competition or any other purpose specified in the certificate

Yes. Riot and strike damage is covered under the policy.

Only the drivers identified in the proposal form will be acknowledged as drivers eligible for indemnity.

File an FIR (in case of snatching) and lodge a claim at Salaam Takaful Limited.

For certain vehicles tracker is mandatory to be installed in the vehicle. For example all 4X4 vehicles and new variants of Toyota Corolla should have the tracker in them.

No. To be borne by the Participant in all cases and it should be of a tracker company approved by Salaam Takaful Limited.

For buying an insurance policy, you need to submit your CNIC, Vehicles registration book’s copy & driving license card.

It is a temporary document given to the Participant as a proof of insurance/takaful which is valid for 7 days. In this duration the participant can make the payment and then this document is void and the policy is issued.

• Policy Copy.

• Copy of Registration book.

• Claim Form; duly filled and signed.

• Copy of Driving License & N.I.C

• Repair Estimates from workshop.

• Original invoice of workshop

• Original insurance policy

• Original Registration book

• Original Police report

• N.O.C (no objection certificate)

• Transfer letter

• Original Policy.

• Final Police Report.

• Original Registration book.

• Claim Form; duly filled and signed.

• Letter of Subrogation.

• Copy of insured’s N.I.C

• Policy Copy

• Copy of Registration book.

• Satisfaction Note duly signed.

• Repair / replacement Estimates.

• Original invoice of repair /replacement work.

• Invoices regarding necessary medical treatment (In case of bodily injury to third party).