News Non-Life10 Oct 2019

Malaysia:Safe drivers to receive discounts on insurance premiums

Drivers in Malaysia with no traffic offences will enjoy lower premiums or additional discounts on their 'No Claim Bonus' (NCB) starting from January next year, reported state news agency BERNAMA citing transport minister Anthony Loke at the side-lines of the 60th Road Safety Council of Malaysia annual general meeting.

“All mechanisms needed to provide discounts are in the final stage of preparation and it will be announced by the end of the year,” said Mr Loke to reporters after chairing the meeting.

He said the process of updating and sharing driver information from the record system of Mysikap of Road Transport Department (RTD) and the Royal Malaysia Police is now in the final stage.

Meanwhile, discussions were held with General Insurance Association of Malaysia (PIAM) who have also agreed for the move to be implemented in order to raise the level of safety on the roads.

According to PIAM, the NCB is a ‘reward’ scheme for drivers if no claim was made on their motor insurance policies on an annual basis. Different NCB rates are applicable for different classes of vehicles ranging from 25% to 55% as provided in the policy for a private car.

The scheme provides significant savings on premiums as motor insurance is mandatory in Malaysia and can be costly when taking the required road tax component into account.

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