Introduction
When people mention JPJ, most of us only think about driving licenses or roadblocks. But honestly, the role of JPJ is way more than that. Together with Bank Negara Malaysia, these two bodies work hand in hand to make sure every car insurance policy follows the law, stays fair, and truly protects drivers — not just look good on paper.
The Role of JPJ
1. Handles vehicle registration & licensing
JPJ doesn’t just issue licenses. They also make sure every car on the road has valid insurance and meets safety standards.
If you get stopped and don’t have insurance, that’s a straight-up offence — and one of the ways JPJ keeps road users protected if accidents happen.
2. Ensures active insurance coverage
During inspections or roadtax renewals, JPJ can reject vehicles without active insurance. This rule helps reduce losses for third parties in case of an accident.
The Role of Bank Negara Malaysia (BNM)
1. Oversees insurance companies
Think of Bank Negara as the “watchdog” of the insurance world. They make sure all insurers follow proper financial standards, pay claims fairly, and don’t sell confusing or unfair policies to customers.
2. Protects consumers
BNM also ensures drivers aren’t being tricked or charged unfairly. They have strict rules about mandatory coverages like motor insurance, so everyone gets equal protection.
3. Helps resolve disputes
If you ever face issues during a claim, you can bring your complaint straight to Bank Negara. They’ve got official channels to help settle disputes between drivers and insurers.
Conclusion
JPJ and Bank Negara are like the two main pillars keeping Malaysia’s insurance system steady. One handles law and enforcement, the other makes sure the financial side stays clean and fair. When both do their jobs right, drivers get better protection, claims go smoother, and everyone can drive with a bit more peace of mind.
Read More:
What Happens To Claim When NCD Is Affected
