by Theleaders | June 9, 2026 7:05 pm
KUALA LUMPUR, June 9 — Motorists with good driving records could see total motor insurance savings of up to 65 per cent under the Cermat Madani initiative, which introduces an additional risk-based rebate on top of existing no-claim discounts.
Transport Minister Anthony Loke said the framework is designed to better reflect driving behaviour in insurance pricing, rewarding low-risk motorists through data-based assessments.
“Today, we launch Cermat Madani, an initiative aimed at encouraging a culture of safer, more responsible and disciplined driving through the use of relevant information and data in assessing motor insurance risk,” he said at the launch.
Loke said the principle is straightforward — responsible drivers should not be treated the same as those with higher-risk driving records.
“The principle is simple. Responsible drivers should not be assessed in the same way as those who frequently commit offences or have a higher-risk profile,” he said.
Under the initiative, drivers assessed as low-risk may be eligible for an additional insurance rebate of up to 10 per cent, subject to evaluation by participating insurers and takaful operators.
He stressed that the benefit is based on individual risk profiling rather than commercial discounts or promotional offers.
“Under Cermat Madani, drivers who drive responsibly and are assessed to have lower risk profiles may be considered for premium benefits of up to 10 per cent, subject to the evaluation and decision of participating insurance companies or takaful operators,” he said.
Loke said this additional rebate will be layered on top of the existing no-claim discount (NCD) of up to 55 per cent, allowing eligible motorists to potentially enjoy total savings of up to 65 per cent.
He said the initiative will be implemented in phases, beginning with collaboration between the government and the insurance and takaful industry to establish a structured framework for rewarding safe drivers.
The system will later be strengthened through wider use of data to improve the accuracy and fairness of risk-based pricing.
Loke said Cermat Madani is not only an insurance reform but also a road safety intervention aimed at encouraging safer driving behaviour through financial incentives.
“Cermat Madani is not merely a reform of the insurance system. It is a road safety intervention that uses economic incentives to positively influence driving behaviour,” he said.
He added that road safety ultimately goes beyond statistics.
“Road safety is not just about statistics or numbers. It is about human lives, family safety and community wellbeing,” he said.
The government, he said, remains committed to improving road safety while ensuring a fairer insurance system that rewards responsible drivers.
“The government wants to ensure that Malaysia’s roads are safer, that the motor insurance pricing system is fairer, and that responsible drivers continue to be properly recognised,” he said.
The initiative will be rolled out in phases, starting with cooperation between the government and industry players before expanding into broader data-driven risk assessment systems.
Source URL: https://theleaders-online.com/safe-drivers-may-get-up-to-65pc-insurance-savings-under-cermat-madani-says-transport-minister/
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