Transport minister Loke Siew Fook said the Cermat Madani programme, a collaboration between the road transport department and participating insurance companies, would provide additional benefits to low-risk drivers.
“This is to ensure that drivers can enjoy more competitive insurance premiums, provided they have good driving records,” he said at the initiative’s launch.
Loke said motorists who renewed their vehicle insurance through the MyJPJ app would be assessed for risk by participating insurers, taking into account factors such as their driving record and traffic offences.
He said the programme offered an additional discount of up to 10% on top of the existing no-claim discount (NCD) system as a “sweetener” to encourage greater adoption of the MyJPJ platform.
Loke stressed that the scheme only applied to motorists who chose to renew their insurance through MyJPJ.
“JPJ is not an insurance company. Insurance is still purchased from participating insurers,” he said.
Ten insurers have joined the programme so far, although participation remains voluntary and open to other insurance providers.
“We are not limiting this to these 10 companies. Any insurance company that wishes to participate can join the scheme and promote its insurance products through the MyJPJ portal or app,” he said.
Loke said the initiative was also part of the government’s efforts to expand MyJPJ’s role beyond driving licence and vehicle road tax services.
He said future phases could see further reductions in premiums as data integration and risk assessment systems became more comprehensive.
The programme uses an AI-powered scoring system to assess motorists, although the criteria and discount rates are determined by individual insurers. “The AI will make an assessment through a scoring system, but the scoring system depends on the insurance companies,” he said.
Loke said the assessment currently took into account summonses issued by JPJ and police, with participating insurers accessing the information through MyJPJ’s backend system
