Discount on motor insurance premium for careful drivers with a clean track record from January 2020

Discount on motor insurance premium for careful drivers with a clean track record from January 2020

If you’re a careful driver with a clean track record, you can look forward to a discount on your motor insurance premium starting from January next year, as Bernama reports.

Transport minister Anthony Loke said an initiative that is being prepared will see drivers without a record of traffic offences being rewarded with a lower insurance premium or additional discount on their no claim bonus (NCB).

Loke said the process of updating and sharing of driver information from the record system of Mysikap of the road transport department (JPJ) and police is now in the final stage. He added that discussions have also been held with the General Insurance Association of Malaysia (PIAM), which also agreed for the move to be implemented in a bid to raise the level of safety on the road.

No details on the initiative were revealed, but Loke said that “all mechanisms needed to provide discounts are in the final stage of preparation, and it will be announced by the end of the year.”

Discount on motor insurance premium for careful drivers with a clean track record from January 2020

In May, Loke said that the ministry was discussing with various stakeholders the possibility of rewarding good drivers with lower insurance premiums. He said that offering discounts for good driving would also benefit 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 the industry as well,” he explained.

“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,” he added.

In 2017, it was announced that the rates for motor comprehensive insurance would make the switch towards liberalisation, with full market liberalisation happening this year. Compared to the fixed tariffs of old, insurance companies are now free to price their offerings, and how much one pays for insurance will eventually be determined by his or her risk profile. Under this risk-based assessment system, a clean sheet with the JPJ and PDRM adds to the brownie points.

Looking to sell your car? Sell it with Carro.

Learn more:

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Mark Cheng on Oct 09, 2019 at 10:26 am

    Fully support

    Like or Dislike: Thumb up 14 Thumb down 0
  • Manual Driver on Oct 09, 2019 at 10:46 am

    Thank u gahmen. thank u YB anthony…

    Like or Dislike: Thumb up 13 Thumb down 2
  • willie on Oct 09, 2019 at 11:07 am

    For companies, the reward from the discount can than be shared to drivers whom have a clean record. win/win for both companies and driver.

    Like or Dislike: Thumb up 2 Thumb down 0
  • heybadigol (Member) on Oct 09, 2019 at 11:14 am

    Good idea. But is it for PDRM summonses only? Or does that include traffic summonses issued by others, eg municipal councils?

    Like or Dislike: Thumb up 7 Thumb down 0
  • Dennis on Oct 09, 2019 at 11:28 am

    Well done

    Like or Dislike: Thumb up 1 Thumb down 0
  • Good move and let’s always make our road safer

    Like or Dislike: Thumb up 2 Thumb down 0
  • Not Toyota Fan on Oct 09, 2019 at 12:09 pm

    This one, talk talk, cadang cadang how long already.

    Like or Dislike: Thumb up 6 Thumb down 5
  • Negative Thinker on Oct 09, 2019 at 12:38 pm

    But….this policy might invited to more bribery problem. when the road user offended the traffic rules, their might as well bribed the authorities to avoid offended track record for able to entitled more insurance discount….

    Like or Dislike: Thumb up 3 Thumb down 1
  • azrai on Oct 09, 2019 at 2:31 pm

    Yes. But only 2% discount.

    Like or Dislike: Thumb up 3 Thumb down 0
    • Not Toyota Fan on Oct 09, 2019 at 5:09 pm

      Ah Loke says got give discounts mah. You tak suka, boleh balik …. Oops, sorry, wrong party. Parti Bunga kata, you tak suka, boleh balik …

      Like or Dislike: Thumb up 2 Thumb down 1
  • This is a great initiative. I wish traffic police and jpj work harder, enforcement is very important which is far lacking in this country. With great initiative and great enforcement, only I can hope for a smooth traffic.

    Like or Dislike: Thumb up 4 Thumb down 0
  • vVivi Zurianti on Oct 10, 2019 at 9:33 am

    how much discount? Substantial or not?

    Just please dont give discount insincerely like tol operators during festive seasons la…..

    I just wait for the sweet-talk….and see.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Defensive lonely driver on Oct 13, 2019 at 2:18 pm

    Should also do the exact opposite: those with lots of summons to pay more insurance premium. This initiative will promote defensive driving hence less accidents, good for everybody.

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required