Electronic insurance notes before JPJ issues permits from next year

  • Nation
  • Thursday, 21 Aug 2003

PETALING JAYA: Motorists will only be issued virtual insurance cover notes from Jan 1 under a new directive by the Road Transport Department (JPJ).  

The new directive issued recently means that insurance companies will no longer give out a physical cover note prior to the issuance of the actual insurance policy. At the same time, JPJ will only release motor vehicle licences and permits, such as road tax, based on the insurance record sent by insurance companies. 

Industry sources said the move towards paperless cover notes for motor insurance policies was initially scheduled this month, but it was postponed after JPJ consulted Bank Negara, the General Insurance Association of Malaysia and Syarikat Financial Link Sdn Bhd, the company appointed by JPJ to provide the computer linkages. 

“All parties have now agreed on the new date,” an industry player said, adding that JPJ was expected to meet industry executives today to inform them of the new changes and the move to implement the new computer system nationwide. With the new deadline, physical cover notes would no longer be accepted for all applications of motor vehicle licences and any transaction with JPJ such as renewal of road tax, he added. 

The move was also in line with Bank Negara's efforts to promote more professionalism and modernise the insurance industry. 

It is understood that Financial Link has introduced limited link-ups with selected insurance companies in the Klang Valley since October 2001. 

It also expanded the linkages to all post offices a year ago. 

The source said the JPJ’s e-insurance initiative, however, had failed to catch on with insurance companies, given the limited linkages, while some insurance e-companies were reluctant to implement it given the cost and training involved. 

“All parties have reached a consensus and it is non-negotiable,” he said, adding that no further delay was expected. 

The latest move by JPJ would benefit more than five million motorists when they register their vehicles or renew their road tax with the department, said the source. 

“They will be able to renew their insurance by phone and collect their road tax at the JPJ,” he said. 

The new measure will also reduce the incidence of cover note forgery and streamline the status and record of vehicles at JPJ.

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