Cermat Madani is built around a mechanism called RAPC, short for Risk Adjusted Premium Computation. In plain terms, RAPC is a data-driven model that prices your car insurance premium according to how risky you actually are as a driver, rather than the broad, vehicle-centric factors (car age and type, location, NCD band) that have traditionally dominated car insurance pricing in Malaysia.
The assessment draws on JPJ data, and the framework spells out the inputs: your driving licence record, vehicle record, traffic summons history, accident record, past insurance claims, and the type and usage of your vehicle. These are integrated across three parties – JPJ, ISM (Insurance Services Malaysia, the industry’s central data house) and the insurers themselves – so a single, more accurate risk profile can be built for each motorist.
At the planned launch, the data used are JPJ records integrated with PDRM; summonses issued by local authorities (PBT) are not factored in for now. And the interesting thing is premiums move both ways. It can go down if you’re a law abiding citizen, but it can also go up vice versa.
Low-risk drivers – clean summons record, not blacklisted, good driving history, low claims – are rewarded with lower premiums. High-risk drivers – many outstanding summonses, a poor accident record, frequent insurance claims, or a JPJ blacklist – will pay more. That is the logic of genuine risk-based pricing, and it’s the part that will generate the most debate once it actually bites, because it does not mean “discount for everyone”, but instead it says “you pay what your record says you should.”
And bear in mind motorists could eventually be assessed based on actual driving data using telematics, with real driving behaviour feeding directly into what they pay.
Speaking of rebates, if your car insurance and road tax is up for renewal soon, you can use our Paul Tan Insurance service with the promo code PAULTAN for 10% off your premium.
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Does it matter when lots of cars out there don’t even have insurance and road tax.
Does it matter when every night half of KL can’t sleep due to rempits and our authorities seem powerless to stop them
What about own accident claim due to other vehicle hitting you does not have insurance. Motorcycle hit also own claim regardless you are guilty or not. Not only lost NCD, but insurance rate will increase.
starting when?
The start of the social credit system. Soon it will be like China.
you prefer the current lawless situation , where many cars dont have insurance roadtax, and rempits ride like gangsters ? where lorry drivers drive recklessly and kill innocents ? where 19 year old brother and his 22 year old brother driving merc and bmw then wiped out entire family ?
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personally i would much prefer malaysia to become like china and/or singapore.
– read more of the news from china & singapore. they also have their fare share of traffic accidents.
Motor insurance is a scam