Third Party Only

This is the basic plan that meets legal motor insurance requirements under Bahrain laws. For Third Party liability this means it covers the third party only who may be injured or killed in an accident and whose vehicle or property may be damaged. It does not cover damage to the insured’s own vehicle or property or any injuries or death to the insured.


Comprehensive Motor Takaful

In addition to Third Party Takaful, this plan provides the insured vehicle with cover against road accidents, over-turning, fire and theft and other benefits. It includes the following options:

  1. Comprehensive Plus
  2. Comprehensive Silver
  3. Comprehensive Gold


Limits of Cover: 

  1.  As per Takaful International’s standard policy wording.
  2.  Benefits available in insured geographical areas only.




The first party, Takaful International Co., is a Company acting subject to the Islamic Sharia’a, as an agent for the participant to manage takaful insurance operations for fixed agency fees investing their funds as a “Mudarib” against fixed percentage of the return thereof.


According to the application submitted by the participant, and in consideration of the payment of the contribution mentioned in the schedule by the participant or on his behalf, Takaful International Co. hereinafter called “the Company” hereby undertake to insure the vehicle(s) mentioned in the schedule during the stated period of takaful cover and in accordance with the terms and conditions of the policy as hereinafter provided.


If the cover stated on the schedule attached to this Policy reads “Comprehensive” then;
1. The Company will indemnify the participant against loss of or damage to the Motor Vehicle and its accessories and spare parts whilst thereon:
(a) By accidental collision or overturning or collision or overturning consequent upon mechanical breakdown or consequent upon wear and tear.
(b) By fire, external explosion, self ignition or lightning or burglary house-breaking or theft.
(c) By an unintentional act.
(d) Whilst in transit (including the processes of loading and unloading, incidental to such transit) by road, rail, inland waterway, lift or elevator.

2. At their own option the Company may pay in cash the amount of the loss or damage or may repair, reinstate or replace the Motor Vehicle or any part thereof or its accessories or spare parts. The liability of the Company shall not exceed the value of the parts lost or damaged and the reasonable cost of fitting such parts. The participant’s estimate of value stated in the Schedule shall be the maximum amount payable by the Company in respect of any claim for loss or damage.

3. If the Motor Vehicle is disabled by reason of loss or damage covered under this Policy the Insurers, will subject to the Limits of Liability, bear the reasonable cost of protection and removal to the nearest repairers and of delivery within the country where the loss or damage was sustained.


The Company shall not be liable to pay for:
(a) Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures or breakages.
(b) Damage caused by overloading or strain.
(c) Damage caused by explosion of any boiler forming part or attached to or on the Motor Vehicle.
(d) Damage to tyres unless the Motor Vehicle is damaged at the same time
(e) Damage to gear box due to towage of the vehicle insured while being towed on its own wheels on the road by towing cranes or any other towing vehicles.
(f) Damage to the insured Vehicle while undergoing maintenance, cleaning or repair at workshops and/or garages.
(g) Any addition of parts or accessories or any amendments to the covered Vehicle other than that originally fixed in the car by manufacturer at the time of issuance of the takaful policy cover, and no appropriate additional contribution for such additions or amendments was paid.


1. The Company will subject to the limits of liability indemnify the participant according to Law No.3 of 1987 in the event of accident caused by or arising out of the use of the Motor
or in connection with the loading or unloading of the Motor Vehicle against all sums including claimants costs and expenses which the participant shall become legally liable to pay in respect of:
(a) Death of or bodily injury to any person excluding the participant or the driver.
(b) Damage to property, excluding those belonging to or held in trust by or in the custody of or control of the participant or a member of the participant’s household or being conveyed by the Motor Vehicle.

2. In terms of and subject to the limitations of and for thepurposes of this section the participant will indemnify any authorised driver who is driving the Motor Vehicle provided that such Authorised Driver
(a) Shall as though he were the participant observe, fulfil and be subject to the Terms of this Policy in so far as they can apply.

3. In the event of the death of any person entitled to indemnity under this Section, the Company will irrespective of the liability incurred by such person indemnify his personal representatives terms of and subject to the limitations at such Section provided that such representatives shall as though they were the participant observe, fulfil and be subject to the Terms of this Policy as they can apply.

4. The Company will pay all costs and expenses incurred with their written consent.

5. In the event of accident involving indemnity under this Section to more than one person the Limits of Liability shall apply to the aggregate amount of indemnity to all persons indemnifiedsuch indemnity shall apply in priority to the participant.

6. The Company may at their own option
(a) Arrange for representation at any inquest or fatal inquiry in respect of any death which may be the subject of indemnity under this Section.
(b) Undertake the defence of proceedings in any Court of law in respect of any act or alleged offence causing or relating to any event which may be the subject of indemnity under this Section.


The Company shall not be liable in respect of:
1. Death, bodily injury or damage caused or arising beyond the limits of any carriageway of thoroughfare in connection with the bringing of the load to the Motor Vehicle for loading thereon or the taking away of the load from the Motor Vehicle after unloading therefrom.
2. Death of or bodily injury to any person in the employment of the participant arising out of and in the course of such employment.
3. Death of or bodily injury to any person being carried in or upon or entering or getting on to or alighting from the Motor Vehicle at the time of the occurrence of the event out of which any claim arises.
4. Damage to property belonging to held in trust by or in the custody of or control of the participant or a member of the participant’s household or being conveyed by the Motor Vehicle.
5. Damage to any bridge, weighbridge or viaduct or to any road or anything beneath by vibration by the weight of the Motor Vehicle or of the load carried by the Motor Vehicle.
6. Damage to property caused by sparks or ashes from the Motor Vehicle, if steam driven.
7. Damage to property, death or bodily injury caused by or arising out of the explosion of a boiler forming part of, attached to or on the Motor Vehicle.


Nothing in this Policy or any endorsement hereon shall affect the right of any person entitled to indemnity under this Policy of any other person to recover an amount under or by virtue of the Legislation. But the participant shall repay to the Company all sums paid by the Company which the Company would not havebeen liable to pay but for the Legislation.
The Company shall not be liable in respect of:
1. Any accident, loss, damage or liability caused, sustained or incurred:
(a) Outside the Geographical Area of the Kingdom of Bahrain
(b) Whilst any motor vehicle in respect of which indemnity is provided by this Policy is:

(1) Being used otherwise than in accordance with Limitation as to Use.
(2) Being driven by or is for the purpose of being driven by any person other than Authorised Driver.

2. Any accident, loss, damage or liability caused, sustained or incurred whilst the driver of any motor vehicle covered under this policy is under the influence of intoxicating liquor or drugs.

3. Any accident, loss damage or liability (except so far as it is necessary to meet the requirements of the Legislation) directly or indirectly proximately or remotely occasioned by, contributed to by or traceable to or arising out of or in connection with flood, typhoon, hurricane, volcano eruption, earthquake or other convulsions of nature, invasion, the act of foreign enemies, hostilities warlike operations (whether war be declared or not), civil war, strike, riot, civil commotion, mutiny rebellion, revolution insurrection, military of usurped power, detention, seizure or confiscation or any attempt, threat or by any direct or indirect consequences of any claim hereunder, the participant shall prove that the accident, loss, damage or liability arose independently of and was in no way connectedwith or occasioned by, or contributioned to by or traceable to any of the said occurrences or any consequence hereof and in default of such proof the company shall not be liable to make any payment in respect of such a claim.

4. Any liability which attaches by virtue of an agreement but which would not have attached in the absence of such agreement.

5. Any sum which the participant would have been entitled to recover from any party but for an agreement between the participant and such party.

6. Any accident loss or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom any consequential loss or any liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionising radiation or contamination by radio-activity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purposes of this exception combustion shall include any self-sustaining process of nuclear

7. Any accident, loss, damage or liability, directly or indirectly caused by or contributed to by or arising from nuclear weapons material.

8. If the driver of a covered Vehicle has fled the accident location, the Company will not be responsible for any damage to the comprehensively covered vehicle, meantime the Company its full rights to revert against the participant in order to recover any sums it may be obliged to pay to a third party for a material damage or a bodily injury (Article No. 8 of Law No. 3 of 1987)

9. Accidents on airport premises and any other premises to which the public have no free vehicular access.


1. Limitations as to use:
Use only for social domestic and pleasure purposes and for the participant’s business. The policy does not cover, use for hire racing competitions rallies or trials or the carriage of passengers for hire or reward.

2. Every notice or communication to be given or made under this Policy shall be delivered in writing to the Company.

3. This Policy and the Schedule shall be read together as one contract and any word or expression to which a specific meaning has been attached in any part of this Policy or of the Schedule shall bear such specific meaning wherever it appears.

4. The participant shall take all reasonable steps to safeguard the Motor Vehicle from loss or damage and to maintain the Motor Vehicle in efficient condition and the company shall have at all times free and full access to examine the Motor Vehicle or any part thereof or any driver or employee of the participant. In the event of any accident or breakdown the Motor Vehicle shall not be left unattended without proper precautions being taken to prevent further loss or damage and if the Motor Vehicle has
been driven before the necessary repairs are effected any extension of the damage or any further damage to the Motor Vehicle shall be excluded from the scope of the indemnity granted by this Policy.

5. In the event of any occurrence which may give rise to a claim under this Policy the participant shall as soon as possible give notice thereof to the Company with full particulars. Every letter, claim, written summons and process shall be notified or forwarded to the Company immediately on receipt. Notice shall also be given to the Company immediately the participant shall have knowledge of any impending prosecution, inquest
or fatal inquiry in connection with any such occurrence. In case of theft or other criminal act which may give rise to a claim under this Policy, the insured shall give immediate notice to the Police and co-operate with the Company in securing the conviction of the offender.

6. No admission offer promise or payment shall be made by or on behalf of the participant without the written consent of the Company who shall be entitled if it so desires to take over and conduct in his name the defence or settlement of any claim or to prosecute in his name for its own benefit any claim for indemnity or damage or otherwise and shall have full discretion in the conduct of any proceedings and in the settlement of any claim and the participant shall give all such information and assistance as the Company may require.

7. At any time after the happening of any event giving rise to a claim or series of claims under Section II-1 (a & b) of this Policy the Company may pay to the Insured the full amount of the Company’s liability under Section II-1 (a & b) and relinquish the conduct of any defence settlement or proceedings and the Company shall not be responsible for any damage alleged to have been caused to the participant in consequence of any alleged action or omission of the Company in connection with such defence, settlement or proceedings or of the Company relinquishing such conduct or shall the Company be liable for any costs or expense whatsoever incurred by the participant or any claimant or other person after the Company shall have relinquished such conduct.

8. The Company may cancel this Policy by sending seven days notice by registered letter to the participant at his last known
address and in such event will return to the participant – the contribution paid less the pro rata portion thereof for the period the Policy has been in force or the policy may be cancelled at any time by the participant on seven days notice – and (provided no claim has arisen during
the current Period of insurance) the participant shall be entitled to a return of contribution less contribution at the Company’s Short Period rates for the period the Policy has been in force.

9. If at the time any claim arises under this Policy there is any other insurance policy covering the same loss damage or liability the Company shall not be liable to pay or contribute more than its ratable proportion of any loss, damage, compensation costs or expenses provided always that nothing in this Condition shall impose on the Company any liability from which but for this Condition it would have been relieved under provision (ii) of Section II – 2 of this Policy.

10. All differences arising out of this Policy shall be referred to the decision of an Arbitrator to be appointed in writing by the parties in difference or if they can not agree upon a singleArbitrator to the decision of two Arbitrators one to be writing by each of the parties within one calendar month after having been required in writing so to do by either of the parties or in case the Arbitrators do not agree of an Umpire appointed in writing by the Arbitrators before entering upon the reference. The Umpire shall sit with the Arbitrators and preside at their meetings and the making of an Award shall be a condition precedent to any right of action against the Company if the Company shall disclaim liability to the participant for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provisions herein contained then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.

11. The due observance and fulfilment of the Terms of this Policy insofar as they relate to anything to be done or not to be done by the participant and the truth of the statements and answers in the proposal shall be conditions precedent to any liability to the Company to make any payment under this Policy. Limits of Liability of the Company

12. Under Comprehensive Cover (Section I)
a) Own damage: The declared sum covered
b) Towage & Storage (Sec. 1-3): BD50

13. Under Third Party Cover (Section II)
a) Third Party Bodily Injury (Sec. II-1 a): Unlimited
b) Property Damage (Sec. II-1 b): BD 500,000

Legislation: This contract is subject to Bahrain Legislative Decree


No alteration in the Terms and Conditions of this cover nor any endorsement hereon will be held valid unless the same is recognised and initialled by the duly authorised Representative of the Company. No renewal receipts are valid unless they are on company’s printed form and under the signature of a duly authorised Representative. Endorsements attaching to and forming part of Policy

It is hereby understood and agreed that in the event of any claim arising under Section 1 of the policy in respect of an accident occurring whilst the Motor Vehicle is being driven by:

(i) Any person under the age of 25 years.
(ii) Any person who is the holder of a learner’s driving licenceduring learning sessions.
(iii) Any person who is the holder of a full driving licence which has been in force for less than one year.
(iv) Any unknown claim The participant in respect of each and every event shall be responsible for the first BD 250/- (or any less expenditure which may be incurred) of any expenditure for which provision is made thereunder it being understood that in relation to any such claim the above amount shall apply in addition to any other amount for which the insured may be responsible under the terms of this policy.If the expenditure incurred by the Company shall include the
amount of the deductible this amount shall be repaid by the participant to the Company forthwith. This endorsement shall not apply to loss or damage caused by fire, external explosion, self ignition or lightning or burglary, house breaking or theft.

In Consideration of the rebate granted in the contribution the participant shall bear the amount of the voluntary deductible mentioned in the schedule in respect of each and every claim. This shall be in addition to any compulsory excess as agreed upon.
If the expenditure incurred by the Company shall include the amount for which the participant is responsible hereunder amount shall be repaid by the participant to the Company forthwith

In the event of an accident giving rise to a claim under Section I sub section 2 the following procedure shall apply.

(a) In the case of a partial loss where some damaged parts are to be replaced the making good of the loss shall be by fitting used parts from a similar model vehicle or, if not available, by
new parts in which case the company shall charge a rateable allowance for betterment as follows:Age of Vehicle Rate of Depreciation
– upto one year Nil
– 2 years Nil
– 3 years Nil
– 4 years 10%
– 5 years 20%
– 6 years 30%
– 7 years 40%
– over 7 years 50%

(b) If the necessary damaged parts are not available in Bahrain and if the participant opt for having these parts purchased
abroad, the company shall reimburse the cost of such parts including the reasonable cost of transport and import duty provided always total cost shall not exceed the latest price known on the local market.

(c) In case of an Actual or Constructive Total Loss, the maximum liability of the Company shall be the covered value or the preaccidental market value of the vehicle whichever is less. Further,once the claim is settled on actual or constructive total loss
the remains of the vehicle shall become the property of the Company and the Company shall dispose it of the way it isdeemed fit. For this purpose the participant shall extend the  required co-operation and shall surrender the necessary documents for doing so.

(d) It is also condition of this policy that the restoring of the damage shall be carried out at any authorised car repair workshop the Company may see competitive to carry out such necessary repair. Should the participant opt for a differentworkshop the Company’s liability then shall be  restricted to the lowest estimate obtained and reimburse the participant on presentation of his car for inspection after repair.



i) The principles and provisions of the Islamic Sharia shall be applicable to this Takaful policy as decided by the Company’s Sharia Board.

ii) The participant is considered jointly liable with the remaining participants for compensating the losses suffered by any participant. The Company shall compensate the participant out of the Takaful fund for losses and damages sustained  according to the terms and conditions set forth in this policy.

iii) The participant shall donate part of all of each contribution into a co-operative Takaful fund for the benefit of the participants.

iv) The Wakala fees (Management Fees) will be paid to the Company out of gross contribution paid by the participants to manage the business. This fees is a percentage of overall
contribution which is determined at the beginning of eachfinancial year. Participants will be notified about this fees in advance through press media and renewal notice or any other means of contacts.

v) The Company shall invest participant’s contributions collectively for the benefit of participants on a Mudaraba basis for a fee equal to a percentage of the realized profits
calculated at the end of the financial year. This predetermined percentage shall be declared at the beginning of each financial year and the participants shall be informed throughpress media and renewal notices, or any other proper means of communications.

vi) Surplus account is calculated as follows:
(a) If there is any deficit in overall underwriting business, all classes will be treated as one portfolio and distribution of profit will not be made for any class of insurance Takaful.
(b) In case of any overall surplus, this will be allocated prorata across the profitable classes according to their contribution to overall surplus.

vii) The Company shall distribute from the surplus arising in theTakaful fund to eligible participants as follows:
(a) A participant will not have the right to receive any surplus from Takaful surplus; it he/she is compensated for damage sustained by him/her where the compensation is equivalent to or more than the contributions.
(b) A participant will have the right to receive a part of his entitlement to the Takaful surplus after deducing the damages sustained if the compensation is less than the contributions.

viii) The financial position of the participant shall be deemed as one position in respect of each type of Takaful Insurance with the Company.

ix) If the participant does not collect his/her share of surplus within a period of 5 years from the end of the financial year during which this policy expires, that share of surplus shall be transferred to a reserve fund to protect the equity of participants.

x) A deduction of not more than 50% of surplus Takaful fund will be made as a donation for Takaful provisions to protect the equity of participants subject to maximum of Company’s capital. In case of Company’s liquidation, this provision will be paid to as charity as decided by Sharia Board after settlement of participants liabilities/commitments.

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