A more thorough explanation:

A penalty point is a punishment given to a driver for breaking traffic rules. When a driver gets a penalty point, it is recorded on their driving record. If a driver gets too many penalty points, their license may be restricted, suspended, or even taken away.

For example, if a driver is caught speeding, they may get a penalty point on their driving record. If they continue to break traffic rules and accumulate too many penalty points, they may lose their license.