PUTRAJAYA: A study on the review of the Motor No-Claims-Discount (NCD) is currently being undertaken.
The Finance Ministry said this was in line with the government’s commitment for a more equitable and market-based approach for private sectors, as well as enhanced efforts to instil and promote good driving behaviour and road safety.
It said Bank Negara Malaysia, together with the insurance and takaful industry in Malaysia, was currently developing proposals for the next phase of the Liberalisation of the Motor and Fire Tariff targeted for 2H 2020.
"This is as part of the reforms to enhance the sustainability, as well as to preserve the overall stability in the insurance and takaful market.
"This multi-stakeholder effort includes a review on the NCD’s structure for greater flexibility and responsibility by all parties, to encourage safer driving by rewarding good road behaviour," the ministry said in a statement today.
The effort, it added, was also aligned with the Transport Ministry's Road Safety Plan 2014-2020 with the aim of reducing the number of deaths and serious injuries by 50 per cent by 2020.
"The phased liberalisation of the Motor Tariff, which started in July 2016, introduced two significant changes.
"These changes were flexibility for insurers and takaful operators to offer new motor products and add-on covers that were not defined under the previous tariff system.
"It is also flexibility for premium rates for Motor Comprehensive, and Motor Third Party Fire and Theft products," it said.