KUALA LUMPUR: My E.G. Services Bhd (MyEG) has entered into a memorandum of understanding (MoU) with A Tech Insure Sdn Bhd for motor vehicle takaful coverage.

       In a filing with Bursa Malaysia, MyEG said the MoU was to provide civil servants with a platform to purchase motor vehicle takaful coverage together with road tax renewal by way of an interest-free Shariah-compliant Qard loan facility that enables installment payments via a salary deduction plan of up to 10 months.

       “MyEG will operate and maintain an electronic platform to process all online applications submitted by civil servants for motor vehicle takaful purchases and road tax renewals.

       “A Tech will process each online renewal to ensure the eligibility and to secure repayment via salary deduction,” it said.

       Both parties will formalise the commercial terms governing the collaboration in due course upon formalising a collaboration agreement.

       “The MoU is expected to contribute positively to the earnings per share and net asset per share of the company for the financial year ending Dec 31, 2021 onwards upon formalisation of a collaboration arrangement with A Tech,” MyEG said.