CERMAT MADANI Offers Up To 10 Pct Insurance Premium Rebate For Safe Drivers

KUALA LUMPUR, June 9 (Bernama) -- Motorists who practise safe driving and who renew their insurance via the MyJPJ application can enjoy a premium rebate of up to 10 per cent through the CERMAT MADANI initiative launched today.

Transport Minister Anthony Loke said the intiative is a collaboration between the Road Transport Department (JPJ) and insurance companies to reduce the burden of vehicle ownership costs while rewarding drivers who practise safe driving.

He said that through this initiative, participating insurance companies will use a risk score generated through an artificial intelligence (AI) system based on driver record data in the MySikap system to assist in the premium assessment process.

“This is the new approach that provides incentives to low-risk drivers through more competitive premiums, thereby encouraging a culture of safe driving among road users,” he told a media conference after the launch of CERMAT MADANI initiative here today.

Loke said that at the initial stage, the assessment only involved JPJ data integrated with the Royal Malaysia Police (PDRM), while data related to summons issued by local authorities (PBT) is not taken into account for now.

According to him, the rate of rebate or discount offered to road users will be determined by the respective insurance companies based on their risk assessment, with no fixed limit or number of summons set by JPJ.

“However, the additional rebate under this initiative is capped at a maximum of 10 per cent, in line with regulations set by Bank Negara Malaysia.

“As of today’s launch, 10 insurance companies have joined CERMAT MADANI and more companies are encouraged to join this initiative,” he said.

Loke said that the implementation of the programme does not involve any additional cost to JPJ as it leverages the existing system, in addition to facilitating access to data required by insurance companies for risk assessment purposes.

Motorists can also renew their Motor Vehicle Licence (LKM) and insurnce via the MyJPJ application up to two months before the expiry date without having to visit JPJ counters

The additional rebate is offered unconditionally for three months from today until Sept 9, before being given based on driver risk assessments, such as accident records and traffic summons in the MySikap database, starting Sept 10.

-- BERNAMA