Good news for Malaysian drivers who actually behave on the road — your good driving record may soon help you save more on car insurance.
Transport Minister Anthony Loke has launched the CERMAT MADANI initiative, which rewards responsible motorists with additional discounts when renewing their vehicle insurance through the MyJPJ app.
Up to 65% discount
Speaking at the launch, Loke said the initiative will allow eligible motorists to enjoy an additional discount of up to 10% on their motor insurance premium.
This comes on top of the existing No Claim Discount (NCD), which currently goes up to 55%.
In other words, if a driver already enjoys the maximum 55% NCD, the remaining 45% of the premium may be further discounted by up to 10% under CERMAT MADANI.
10% promo until Sept 9
Loke said the 10% discount will first be offered as a promotional incentive for the first three months, from now until Sept 9.
During this promotional period, eligible users do not need to go through a driving risk assessment to enjoy the discount.
However, starting Sept 10, the discount will be fully based on the driver’s risk score.
This means only drivers with good driving records and lower risk levels will be eligible for the additional premium discount after the promotional period ends.
AI will check driving records
According to Loke, the initiative uses artificial intelligence through MyJPJ’s backend system, which is linked to databases from the Road Transport Department (JPJ) and police.
The system will review a vehicle owner’s traffic offence records and generate a risk score.
However, he clarified that insurance companies will not directly access JPJ’s database.
Instead, they will only make assessments based on the system-generated score.
He added that the concept is similar to a credit scoring system, where different insurance companies may apply different assessment standards and offer different discount rates, such as 5% or 8%.
For now, the maximum additional discount is capped at 10%.
Encouraging safer driving habits
Loke said CERMAT MADANI is not only an insurance reform, but also a road safety intervention.
He said when safe driving is given real value and recognition, the government hopes more motorists will obey speed limits, follow traffic rules, avoid repeated offences, and become more responsible towards other road users.
“Road safety is not merely about numbers or statistics. It concerns lives, family well-being and the interests of the community,” he said.
He added that any behavioural change that can reduce road accidents, lower injuries and save lives is meaningful.
MyJPJ to become a bigger digital platform
Loke also said the Transport Ministry has been working with strategic partners through JPJ since 2025 to provide vehicle insurance services in the MyJPJ app.
He explained that this is part of the government’s move to transform MyJPJ from a basic transport service app into a more complete and convenient digital service platform.
The ministry also welcomes more qualified operators to offer third-party services through MyJPJ, as long as they meet technical, safety and data governance requirements.
Loke said MyJPJ will act as a digital gateway for innovative services, while the insurance discounts will still depend on each insurance company’s own risk assessment mechanism.
With CERMAT MADANI now in place, Malaysian drivers with cleaner records may soon be rewarded not just with safer roads, but also cheaper insurance bills.
