MALAYSIA is finally rewarding safe drivers, and that is something many motorists have long wanted to see.
Transport Minister Anthony Loke recently unveiled CERMAT MADANI, a programme that links JPJ driving records with insurance premiums through MyJPJ. Under the initiative, motorists with clean driving records can enjoy an additional 10% discount on top of their existing No-Claim Discount (NCD).
That deserves recognition.
For years, motorists who accumulated traffic summonses have been offered discounts and special compounds to settle their fines. The question is whether careful, law-abiding drivers have been rewarded enough for doing the right thing.
CERMAT MADANI introduces an important principle: responsible behaviour should be rewarded, not merely that irresponsible behaviour should be punished.
That is progress. However, good policies should still be evaluated critically.
Consider a driver whose annual insurance premium is RM1,200 before discounts. After receiving the maximum 55% NCD, the premium falls to RM540. Applying CERMAT MADANI’s additional 10% discount results in annual savings of RM54.
That works out to RM4.50 a month, roughly the cost of a teh tarik and roti kosong.
For motorists who have spent years driving responsibly, avoiding accidents and maintaining a clean claims record, the additional savings are unlikely to feel transformative.
To be clear, this is not a criticism of CERMAT MADANI itself. Quite the opposite. I support the initiative. What I question is not the direction of the policy, but the scale of its ambition.
Because the real significance of CERMAT MADANI is not the RM54 but the data ecosystem quietly taking shape behind it.
For the first time, Malaysia is creating a pathway that allows drivers’ records, the KEJARA demerit points system, digital government services and insurance pricing to communicate with one another.
MyJPJ is no longer merely a platform for renewing licences and road tax. It has the potential to become a bridge between driving behaviour and insurance risk assessment.
That is where things become genuinely interesting.
When the introductory phase ends and more sophisticated risk-based pricing emerges, we will discover whether CERMAT MADANI becomes the foundation of a modern road-safety ecosystem or merely another well-intentioned programme that fades from public attention.
International experience suggests we should aim much higher.
In several countries, insurers increasingly use telematics technology to assess driving behaviour in real time. Rather than relying solely on past claims history, these systems can monitor factors such as speed, braking patterns, driving hours and mileage.
The result is simple: drivers are rewarded not only for avoiding accidents, but for demonstrating safe driving habits every day.
Record-based systems reward what motorists did in the past. Behaviour-based systems influence what they are doing today.
That feedback loop is where habits change, attitudes shift and road safety improves.
Which brings us to the obvious next step: If Malaysia is serious about rewarding safe drivers, we should build a package worthy of the name.
Consider extending NCD tiers beyond the current 55% ceiling. Explore telematics-based incentives that offer meaningful savings for consistently safe driving.
Provide benefits that motorists can genuinely appreciate, such as enhanced towing coverage, flood protection, discounted windscreen replacement, expanded passenger coverage and emergency roadside assistance.
Most importantly, reward behaviour, not merely the absence of accidents.
CERMAT MADANI is a promising start. The data exists. The technology exists. The platform already exists.
What remains is the willingness to build a safe-driver rewards ecosystem that makes obeying the law more than a civic duty. It should become a benefit motorists actively want to protect.
Malaysia’s roads deserve an ambition considerably larger than a monthly teh tarik.
Shahrim Tamrin is a sustainable transport and road safety activist. He was a former MIROS board member 2019-2022.
The views expressed are solely of the author and do not necessarily reflect those of MMKtT.
-Focus Malaysia
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