Motorists renewing insurance via MyJPJ from June 9 will receive an extra 10% rebate, with future discounts based on driving records.
KUALA LUMPUR: Motorists who practise safe and responsible driving will soon be rewarded under the government’s new Cermat Madani Programme, which offers an additional 10% Madani rebate on renewed motor vehicle insurance premiums beginning June 9.
Transport Minister Anthony Loke said motorists who renew their motor insurance and road tax through the MyJPJ application may qualify for the rebate on top of the existing No Claim Discount (NCD) of up to 55%.
“For example, if a motorist is already entitled to the maximum 55% NCD and has a good driving record, they can receive an additional discount of up to 10%, bringing the total discount to 65%,” he told reporters after launching the programme today.
Also present at the programme was philanthropist and business tycoon Tan Sri Vincent Tan.
Loke said 10 insurance companies are participating in the initiative, which will be rolled out in two phases.
During the first phase, from June 9 to Sept 9, all motorists renewing their insurance through the MyJPJ application will automatically receive the additional 10% rebate, regardless of their driving records.
However, beginning Sept 10, eligibility for the rebate will be determined through an artificial intelligence-powered risk assessment system that evaluates motorists based on their driving history.
“The system will automatically assess records from the Road Transport Department and police databases when motorists renew their insurance via MyJPJ,” he said.
Loke stressed that the methodology used to determine eligibility and the level of discount offered would be decided by participating insurers.
“We do not set a specific threshold on the number of summonses a person can have. Insurers will assess the driver’s overall risk profile and decide the level of discount to offer,” he said.
At present, only summonses issued by the Road Transport Department and the police will be considered in the assessment, while local council fines will not be taken into account.
Loke said insurers had previously faced difficulties in evaluating motorists due to limited access to reliable driving records.
“Previously, insurers had no direct way of assessing whether a driver had traffic offences, accident records or a poor driving history.
“Through this integration, they can now receive a risk score while personal data remains protected,” he said.
He added that the initiative is also intended to encourage greater adoption of the MyJPJ application by enabling motorists to conduct more transactions digitally, including road tax and insurance renewals.
“This is our first step towards reducing insurance costs for consumers while encouraging more prudent driving.
“In the future, it may not only involve discounts, but also lower insurance premiums for drivers with excellent records,” he said.
Loke said the government ultimately aims to establish a fairer insurance ecosystem that rewards motorists who comply with traffic regulations and maintain good driving habits.
“The first three months of the programme serve as a promotional period to encourage motorists to use the MyJPJ application.
“During this period, everyone will receive the rebate. But ultimately, our goal is to reward motorists who genuinely maintain good driving records.
“If motorists who accumulate many summonses receive the same rewards as responsible drivers, the programme loses its purpose. We want prudent drivers to be the ones who benefit,” he said.
He described the initiative as an important first step towards promoting safer driving behaviour and creating a more equitable insurance system for Malaysian motorists.
