11/06/2026
Should I purchase my car insurance through JPJ in order to enjoy up to additional 10% NCD reduction in premium?
Let's look into it further.
1. NCD deduction
Only applies to Basic Premium. Add ons like your windscreen, special perils, unlimited towing, Etc - NOT APPLICABLE.
2. NCD 55% + 10% extra does not equal to 65%
Basic premium RM 1,000 less 55% NCD = RM 450 only then Less additional 10% = RM 405 (Effective NCD Enjoyed 59.50% or at best just 4.5% more only)
3. Selling insurance
Anyone that sells insurance on behalf of an insurer is known as an Intermediary. An intermediary gets remunerated by means of commission. Thus, by virtue JPJ selling insurance, they too like all Agents/Brokers/Banks and all Online Platforms received commissions from insurers.
4. Policy Servicing
Insurance is a legal contract and it is not just any general goods we buy. When an accident or dispute arises during an insurance period, is JPJ able to provide immediate assistance or remedy? I don't have the answer. If they don't, you are as good as on your own.
My 2Cents:
A. Want to Save, Buy Directly
Do you know you get 10% rebate on the total premium payable when you buy directly from an insurer? You enjoy the maximum possible savings than buying from anyone else! (10% is the remunerations an intermediary received)
Buy direct
Basic premium less 55% NCD + add ons = RM 1000.
RM 1000 Premium Less 10% rebate = RM 900
8% SST is on premium after rebate = RM 72
Stamp duty RM 10
Total payable buying directly = RM 982 (instead of 1,090.00 buying from an intermediary)
B. Dealing with insurers
Getting into an accident regardless of who is at fault is a stressful ordeal. From having to deal with tow operator, finding a workshop, following up with the insurers and the worst of all - arranging alternative transportation while the damaged vehicle is in the workshop and more.
You pray to be one of the happy campers that your claim will be settled smoothly. But what if it is otherwise? Are you ready to go through the hassle of dealing with the workshop and the insurer on your own in order to get your vehicle road worthy again?
C. Engaging an Agent or Intermediary
For Extra Peace of Mind knowing you will be in good hands during a mishap is it worth paying the extra 10%?
The answer is, it all Depends.
Yes to Engage Professional Intermediary offering Personal Touch -
Knowing the agent answers all your calls and is reachable 24/7 , 365/366 days In a year. Most importantly can assists and solves your queries pertaining to your insurance needs.
Not to Engage an Intermediary - if it doesn't meet above criteria. Accidents can happen anytime and you want to be sure that you have the luxury of a reliable avenue to fall back on at that very moment.
Lastly, I think the intention for JPJ to offer the additional discount, other than increasing their revenue, it is more to encourage motorist to settle and pay off their long outstanding fines.
