Following the Conventional or Takaful Motor Insurance?
Car insurance helps you against physical damage to your automobile in case of an accident. In the densely populated metropolitan of Pakistan and long highways which connect borders, traffic accidents are part of daily routines. That is why there is a need for car insurance. Motor insurance is not limited to vehicle damage. They also cover personal accidents. Find the best motor insurance in Pakistan that best suits your needs.
There are two broad types of insurance available in Pakistan Takaful Insurance and Conventional Insurance. We have seen many established insurance companies where there are limited Takaful Insurance providers as they provide Shariah-compliant alternative that do not compromise our religious beliefs for security and safety of our vehicle. The insurance offers similar benefits, but this mode seems to appeal more to customers and seem like an altruistic approach. Takaful sector is expected to cross 25 $ billion by 2021 compared to conventional insurance, which is currently in trillion dollars.
Conventional car insurance is still a larger car insurance service because it’s a simple model premium computed on the car’s model and build level and level of service required.
Even the most long-standing insurance providers have understood that today’s consumer prioritizes convenience over price. So companies have created products keeping in view the convenience and flexibility of the customers. Some companies even offer customized plans. This one of the plan’s customized ones is being offered to customers at appealing costs that won’t just grow like cane every day.
There are many different insurance plans available that cover the consumers’ various needs regarding car insurance or vehicle insurance. The Takaful plans vary based on cars and models. There is one additional aspect of this some companies offer plans for old and new cars both whereas some offer only for new models. Old model is one which is over five years old, whereas the new models are those who are under five years old.
Third-party coverage is the most basic and mandatory requirement by the government of Pakistan for all the vehicles that are on the road. Third party insurance, commonly known as TPC, means if God forbid there is an accident and both parties have third party insurance, they can both get their damage cover through each other insurance. This vehicle owners can have 3T services from their insurance providers that cover theft, Total loss and third party loss. One of the famous car insurance service providers is TPL in Pakistan which offers a premium on insurance ranging from 0.99% % to 3.25 % depending on the service and left of coverage.
Let’s look at the rates offered by various insurance providers in Pakistan if we were to insure one of the most selling car in Pakistan Corolla or Honda with an approximate value of 2.5 million PKR, one would get premium ranging from 47,750 to 62500 PKR per annum.
The plan with a price tag are based on 15 % discount offered by the insurance providers. If we remove these discounts, almost all the plans, conventional and takaful, are the same for this car price.