Digital insurance platform BJAK has recently announced an RM150 Million Free Road Tax program. It has been going on since last month and the company claimed that the program will benefit more than 6 million users throughout Malaysia.
BJAK Free Road Tax Program has a huge catch
If it sounds too good to be true to you, it is indeed in so many ways. For one, it will not give you “free” road tax but instead, the more accurate way to describe BJAK’s new move is a subsidy program.
That is because the program comes with a ceiling limit of RM90. If your road tax exceeds that amount, then you have to pay the price differences yourself.
Not only that, you also have to refer 3 friends to BJAK before you can get that so-called “free road tax,”. On top of that, they have to be new customers and have not signed up for BJAK services before.
Furthermore, you have to provide the referrals to the digital platform within 7 days.
There are some overreaching claims too
Last but not least, we also made some basic calculations concerning BJAK’s claim that its new program will benefit over 6 million users. Assuming that each of the “free” road tax requests is RM90 as per the ceiling limit, the program’s RM150 million budget will only be able to cover around 1.6 million users.
To cover at least 6 million users, the maximum road tax fee has to be RM25 per person. Given that amount, BJAK’s pitch seems skewed towards entry-level motorcycles and cars.
As a reference, the lowest road tax in the country at the moment is for motorcycles with an engine capacity of under 150cc which costs RM2. For 151cc to 200cc motorcycles, the road tax would be RM30.
For cars, the cheapest road tax fee is RM20 which applies to those with engine capacity of 1000cc and below. If the engine capacity is between 1001cc and 1200cc, then the road tax fee would be RM55 instead.
All in all, BJAK’s RM150 Million Free Road Tax program is essentially a customer referral exercise that has been fused with road tax subsidy as its core attraction. If you think that it is still an attractive offer, you can participate in the program by obtaining the insurance quote for your vehicle at BJAK’s website.
