CIMB bundles Takaful insurance and loan for first-time car buyers

The programme includes road tax, total vehicle loss protection, and Takaful.

CIMB Bank Berhad is simplifying the first-time car buying process in Malaysia by combining insurance, including Takaful options, and financing into a single offering for younger customers.

“Traditionally, the market has been organised around individual products,” Haniz Nazlan, CEO for group consumer banking at CIMB, told Insurance Asia. “Customers are expected to piece together financing, protection, and ownership costs themselves.”

Nazlan said first-time buyers often have to choose financing, insurance or Takaful, estimate ownership costs, and determine what they can afford, all whilst making these financial decisions for the first time.

The solution’s insurance coverage is customisable. Customers prioritising vehicle protection against accidents and theft can avail of the CIMB Secure Motor/IKHLAS Private Car Comprehensive Plus Takaful.

Customers who want to safeguard the value of their car can avail the Purchase Price Gap (PPG) Insurance/Takaful. In the event of total car loss, which will pay out the car’s original vehicle value if total loss is suffered within a five-year period due to accidental damage, Nazlan said. 

The bank's First Car Solution combines vehicle financing with insurance and Takaful options, protection against total vehicle loss, complimentary road tax, and warranty protection for used or reconditioned vehicles covering mechanical and electrical failures.

Optional accidental death and disability benefits are also available. The solution targets customers aged 18 to 30, a group that often has limited credit histories.

“For younger customers, limited credit history doesn't automatically mean they are not creditworthy,” Nazlan said in an emailed reply to questions. “What matters is taking a holistic view of their financial circumstances and lending responsibly based on affordability.”

He added that affordability extends beyond loan approval to the costs of vehicle ownership.

Nazlan said customer interest has been strong, with younger consumers increasingly seeking integrated and personalised financial solutions instead of standalone products. He declined to disclose uptake figures.

“Customers today don't think in terms of needing a loan, an insurance policy, or an investment product,” he said. “They think about the milestones they're trying to achieve—buying their first car, owning a first home, building wealth, or preparing for the future.”

Nazlan said CIMB plans to expand similar products across Islamic wealth management, mortgages, cross-border and digital banking, and sustainable finance.