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.”

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.