Today we are going to teach you what are the differences between an agreed value and a market value :-
The value is agreed by the policyholder and the Takaful operator when the renewal is made. Full compensation is paid in the event of theft and total loss on the vehicle.
The value of the car is according to the market price when the Takaful renewal is made. Compensation is paid according to the market price in the event of theft and total loss on the vehicle.
Agreed Value vs Market Value :
With an Agreed Value policy you can get an adequate payout for your car without worrying about depreciation or under-insurance. The Market Value option, on the other hand, may save you a couple of ringgit depending on the insurer you choose.