Loke: Cheaper Car Insurance Soon For Drivers Who Do Not Get Summons
Being a good driver will help you receive monetary perks starting next year.
By Yap Wan Xiang — 09 Oct 2019, 06:22 PM
Drivers who do not break traffic laws in the country will soon enjoy a discount on annual insurance premium renewals, said Transport Minister Anthony Loke
Loke said the implementation is slated to come into effect in January next year, reported Bernama.
He said the Ministry is in the final stages of completing the mechanism.
The rebate will require integration of information and data between multiple parties
"For this effort, we need to integrate information and data by the police and Road Transport Department (RTD) on people with clean records on roads and vice versa," New Straits Times quoted Loke as saying.
"We would also need support from insurance companies to create integrated data involving the RTD and police, and reward deserving people.
"Once everything is ready, we hope to start early next year," he said yesterday, 8 October.
Loke said the move not only aims to encourage drivers to follow the traffic laws, but also helps to reduce the cost of living
He said this initiative will be beneficial for the insurance companies too.
"If we are able to reduce road accidents, insurance claims could also be reduced," Loke said.
"With this new system, instead of paying out claims, they could offer more rebates on driver's no-claim bonus (NCB), on top of the 50% discount if their vehicle is accident-free."
Loke said the Ministry wanted to use this reward-or-punish combination approach to reduce road accidents nationwide.
