The government is currently in talks with the insurance industry to reward good drivers in ways such as lower insurance premiums. This carrot part in the carrot and stick approach to changing driver behaviour was revealed by transport minister Anthony Loke yesterday.
“Safer cars and roads are important, but equally important are safer drivers. That’s why at the ministry of transport, we’re advocating a series of campaigns to advocate, to propagate, to promote the culture of road safety and driving safety,” he said at the launch of Drive for Life, a campaign by Bosch Automotive Aftermarket Malaysia advocating for safer cars and roads.
“That’s why I’m a big believer of applying carrot and stick approaches. For bad drivers, we must penalise them. Of course this makes me very unpopular among some drivers – people are criticising us for applying some of the hard measures in terms of enforcement – but I think this is national interest, and we must be prepared to take hard decisions. The enforcement must be strict and strong, but at the same time, just the stick is not enough.
“There must be a carrot, and that’s why we’re advocating rewarding the good drivers. There must be some schemes, initiatives, to reward good drivers. Because as with human nature, if you have some rewards, people tend to change their behaviour. These are initiatives that we hope we can roll out in the comiong months,” Loke said.
The minister described the rewards scheme as a win-win for both motorists and the insurance industry. “I have been in talks with various stakeholders including some insurance companies to come up with a scheme of how to reward good drivers. For instance, if they do not have any traffic summonses, what kind of reward they (insurance companies) can give, whether it’s in the form of reduction in insurance premiums.
“That’s actually a win-win situation, and it goes hand-in-hand with the insurance industry. If we can produce a generation of good drivers, if drivers are better behaved on the road, then the companies will be the ones who benefit, because they will not have to pay so much insurance payouts. In the end, it will be beneficial to their industry as well,” he added.
There’s nothing in it, financially, for the government in such a scheme. “For the government, we’re not looking from the dollars and cents perspective, but more to reduce road accidents and to create a safer environment for all drivers in Malaysia,” Loke said, adding that data and a driver’s track record can be obtained from JPJ and PDRM.
In the press conference after the launch, Loke said that the government are in the final stages of talks with the General Insurance Association of Malaysia (PIAM) and auto insurance players, with the rewards portion yet to be determined.
The motor insurance industry is currently undergoing a liberalisation phase, with full market liberalisation scheduled for 2019. Compared to the fixed tariffs of old, insurance companies are now free to price their offerings, and how much one pays for insurance will soon be determined by his or her risk profile. This risk-based assessment is already present in many countries, and it rewards those who are perceived to be low risk with lower premiums. A clean sheet with the JPJ and PDRM does indicate lower risk.
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Terbaek Anthony!
Thumbs up!!
Good drivers already enjoying NCB/NCD. Further reductions can be given to cars with
1. Good or excellent level of safety (passive/active)
2. Good or excellent level of vehicle security (alarm, immobiliser, GPS tracker)
And penalties to drivers with mutilple claims in a period of 5 years.
This is good,
go ton loc…. u da man :)
I am cool with this but why does my old vehicle of which some command more value by years cant get 1st party insurance?
about time
LOL! Bro. Why not first show you have guts to punish bad drivers instead of giving them discounts and waivers? Clueless minister is clueless minister.
Reward good drivers like this?
https://paultan.org/2018/08/17/all-existing-aes-summonses-to-be-written-off-loke/
https://paultan.org/2018/08/30/dbkl-gives-errant-motorists-until-september-30-to-settle-summonses-after-which-jpj-blacklist-looms/
https://paultan.org/2018/04/05/jpj-summons-70-off-in-april-except-speeding-fines/
Funny on their definition of ‘good drivers’.
Kudos to the previous government that initiated this.
What the past govt failed to do for past 61 years.
The current one managed to settle in 10 month
Yes. Past government never rewarded bad drivers by waiving samans. Well done current gov.
All insurance company are sharks making killing, regardless of old or new cars.
Every year insurance players increase their rates with excuse of adding charges this, and charges that.
My insurance went up despite abolishment of GST, while the insured value of the car decreased over the years. Logic or not?
When I asked the insurance player why, they say “This is due to insurance charges introduced just recently”
Enough of wayang kulit….
You have too many ideas..but none materialised…more like tin kosong…such a big flop…
Anthony Loke is doing such a good job. In 9 months, he has done more work than any counterpart in 60 years
Easiest solution. No need to discuss with insurance providers. Any vehicle not involved in accident or traffic offence for 3 years, insurance premium becomes SST. exempted. Saving of six percent shall encourage law abiding and considerate driving. Government can kick off program on its own right away.
Despite my car’s depreciation, I’m having to pay more this year compared to previous year. JPJ should instead check if insurance companies are colluding to price fixing.
Wasn’t this already going on when we swapped to risk based insurance not long ago? whether you have summons / claims was taken into consideration… the reason why OTR price on new cars nowadays is without insurance…. hmm…
It’s ripe time to revise the unfair vehicle insurance covers whenever car got hit by motorcycles the car owner on the loosing end.
Parliament should also revise the traffic laws related to car and motorcycle accident. Motorcyclist shall not be menace on the road.
I felt that the government should encourage the insurance company to accept third party insurance coverage from the consumer. Years ago it was an option but not now.
It’s a choice for the consumer to decide if the car’s financing is already fully paid up. Those who opt for third party coverage would have to drive more carefully and that in return contribute to road safety.
Population growing too fast with each family having 6 to 12 kids. This is why so many accidents