KUALA LUMPUR: Motorists who drive responsibly and maintain a clean driving record will pay less for their motor insurance under a new government initiative that uses data-driven risk assessments to reward safer behaviour on the road.
The first phase will offer a 10% rebate to all motorists who purchase motor insurance starting Tuesday, June 9.
For the next phase, the scoring system will determine who gets the rebate, where the percentage may vary, for motor insurance.
Transport Minister Anthony Loke Siew Fook, said the Cermat Madani initiative will reward motorists assessed as low-risk with an additional rebate of up to 10% on their insurance premiums.
He said the rebate will be on top of the existing no-claim-discount (NCD), which may go up to 55%, enabling eligible motorists to enjoy savings of as much as 65% on their premiums.
“This initiative is based on the principle that drivers who comply with the law, maintain good driving records and consistently prioritise safety deserve to be recognised and rewarded accordingly. In the past, insurance companies faced hurdles in coming up with this risk assessment.
“Now, with the MyJPJ application, the artificial intelligence (AI)-driven risk assessment system will process and determine the score of motorists based on their driving records under the Road Transport Department (RTD),” Loke said yesterday, adding that motorists whose scores are high may also be offered lower base premiums for their motor insurance.
He said under its first phase, a 10% rebate will be offered across the board for all motorists who purchase motor insurance effective yesterday.
“However, this is not the plan. Gradually, the scoring system will determine who gets the rebate. We want to only reward those with a spotless driving record with the rebate,” Loke said.
He said that to be eligible for an additional rebate, motorists would need to purchase motor insurance through the MyJPJ application.
Loke clarified that the insurance coverage is provided by 10 participating insurance companies and not by the RTD.
“So far, 10 insurance companies have joined the initiative, but we welcome others to do so as well. Each company may have its own scoring system and make risk assessments. The ministry has no control over this.
“The additional rebate can vary but is offered at a maximum of 10%. We also introduced the Cermat Madani as a way of encouraging motorists to use the MyJPJ application, which offers multiple other features apart from buying motor insurance,” he told a press conference after launching the initiative.
Loke said the initiative forms part of the government’s broader effort to strengthen road safety through a more progressive and data-driven approach.
He said by recognising and rewarding prudent motorists, it would encourage more drivers to comply with speed limits, obey traffic signals and avoid repeated offences.
Loke said the Transport Ministry is committed to making roads safer and ensuring a fairer insurance premium assessment system that rewards motorists who drive responsibly.
