Drivers with a good driving record could enjoy additional 10% savings on their motor insurance premiums on top of the existing 55% no-claim discount (NDC) under the Cermat Madani initiative. Announced by the Ministry of Transport, the discounts will be available exclusively when renewing insurance through the MyJPJ app.
The initiative will be rolled out in phases as the Government, insurance, and takaful industries are currently collaborating to establish a structured framework to benefit said drivers. The accuracy and fairness of risk-based pricing will be further improved with more data.
The framework is designed to reflect responsible driving behaviour through motor insurance prices, rewarding those who possess low risk through data-based assessments. This includes active summons records and blacklist status checked through the Road Transport Department’s (JPJ) mySIKAP database.
Artificial intelligence (AI) systems will be used to assess driver records via the integration of JPJ and Royal Malaysian Police (PDRM) data before the insurance companies decide on the eventual rebate rates.
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When renewing the Motor Vehicle License (LKM) through the MyJPJ app, and if the risk profile shows as low, a risk assessment will be carried out. Drivers assessed as low risk may be eligible for an additional insurance discount of up to 10% after an evaluation process by the participating insurers and takaful operators. This additional discount can then be layered on top of the existing no-claim discount (NCD) of up to 55%, bringing total savings up to 65%
For now, the government says all consumers are given three months to enjoy a 10% rebate when they renew their insurance until 9 September. From 10 September onwards, the process will go on its next phase, where the 10% rebate will be determined by the driver risk assessment mentioned above.
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Transport Minister Anthony Loke, during the Cermat Madani Programme Launching Ceremony, says safe drivers should be treated differently. “The principle is simple. Responsible drivers should not be assessed in the same way as those who frequently commit offences or have a higher-risk profile,” he said.
Loke emphasised that the initiative is not just for reforming the insurance system, but to encourage safe driving via financial incentives. “Cermat Madani is not merely a reform of the insurance system. It is a road safety intervention that uses economic incentives to positively influence driving behaviour.”
“Road safety is not just about statistics or numbers. It is about human lives, family safety and community wellbeing,” he added.
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