15th January 2020 - 3 min read
KATSANA has announced the pilot launch of the “Safe Driving Rebate Program”, which seeks to reward safe drivers and promote good driving behaviour on the road. The programme – which is rolled out under the company’s subsidiary, DriveMark – is supported by Etiqa Insurance and Takaful Ikhlas General Berhad.
The “Safe Driving Rebate Program” offers a rebate of up to 30% for their motor insurance, on top of the driver’s existing No Claim Bonus (NCB) at the end of the motor insurance policy period. More importantly, it is also intended as an introduction to full-fledged usage-based insurance in the country.
Usage-based insurance is a type of motor vehicle insurance that calculates your premium based on current criteria such as the distance of your drive, your driving speed and attitude, your destination, and the time of your travel. These data are called telematics, and insurers offering usage-based insurance will base your premium off these real-time telematics and how they perceive your risk as a road user in the present time.
This differs from conventional motor insurance where your premium is calculated based on past driving history, the make and model of your vehicle, mileage, and vehicle use.
The distinction could make a significant difference in the premium that you pay for your motor insurance. For instance, if you had purchased a conventional auto premium and were earmarked as a high-risk driver by the insurer due to various accidents in the past, you’d be required to pay a high premium.
But with present-day telematics, insurers could offer you a recommended coverage with a lower premium, based on your recent driving behaviour.
DriveMark is a mobile app designed by KATSANA to monitor and collect drivers’ telematics. In 2017, KATSANA was able to sign memorandums of understanding (MoUs) with several insurers, including Etiqa Insurance and Etiqa Takaful, to help them better price their motor insurance with DriveMark’s database.
The “Safe Driving Rebate Program” is carried out as part of an on-going collaboration with Etiqa Insurance Berhad and Etiqa Takaful Berhad.
“We are extremely pleased to receive support from Etiqa Takaful Berhad, Etiqa Insurance Berhad and Takaful Ikhlas Berhad to reward proven safe drivers with significant motor insurance rebate. This pilot program can only be realised through continuous collaboration with the insurance partners and the wealth of driving behaviour data that has been collected in the past 3 years,” said the group chief executive officer of KATSANA, Syed Ahmad Fuqaha bin Sd. Agil.
Syed also added that this collaboration between established insurers and DriveMark is a pivotal moment for all parties involved as it helps pave way towards promoting a progressive and transparent usage-based insurance approach.
DriveMark’s initiative also reflects the merit system that the government will be introducing in January 2020 to encourage better driving behaviour among Malaysians.
Interested Malaysian drivers can now test out DriveMark by downloading the app from the Apple App Store or Google Play.
(Source: FintechNews Malaysia, DriveMark)
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