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Understanding Your Car Insurance No Claim Discount (NCD) in Malaysia

ByMilie J

If you’ve ever renewed your car insurance, you’ve probably come across the term insurance NCD (No Claim Discount). 

But what exactly is it, and why should you care?

Put simply, insurance NCD is a reward given by insurance companies for claim-free driving. 

It’s a way for insurers to encourage responsible driving by offering discounts on your annual premium. 

If you avoid making claims, you’ll get to enjoy lower car insurance costs over time. And let’s be honest—who doesn’t love saving money?

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How Insurance NCD Works

Here’s the deal: the longer you go without making an insurance claim, the bigger your discount. 

Each year that you drive safely without claiming, your NCD percentage increases. 

However, this discount isn’t automatic—you need to ensure that no claims have been made against your policy, even by a third party.

In Malaysia, the maximum NCD rates are set by PIAM (Persatuan Insurans Am Malaysia). Here’s how the discount builds up:

NCD Rates

For example, let’s say you own a car and have been claim-free for three years. That means you’ll get a 30% discount on your next car insurance renewal. 

Pretty sweet, right?

How Claims Affect Your Insurance NCD

Here’s the catch—if you make a claim, your NCD usually resets to 0% the following year. 

This means you’ll lose your hard-earned discount and end up paying a higher premium when renewing your policy.

Exceptions: Claims That Won’t Affect Your NCD

Thankfully, not all claims will wipe out your NCD. Here are some situations where your NCD remains intact:

1. Windscreen Claims – If you have a windscreen insurance add-on, claiming for repairs won’t affect your NCD.

2. No-Fault Claims – If another driver hits your car and you can prove it wasn’t your fault (with a police report), your NCD should remain unaffected.

3. Claims Against a Third Party’s Insurance – If you claim directly from the at-fault party’s insurer, your NCD is safe.

4. Theft or Fire (Depends on the Insurer) – Some insurers may allow you to retain your NCD after a theft or fire claim.

5. Natural Disasters (Depends on the Insurer) – Similarly, some insurers might not penalize you for acts of nature like floods or fallen trees. Always check with your insurance provider.

Checking Your NCD Online

Want to check your insurance NCD status? You can do it online in just a few minutes!

mycarinfo NCD

1. Go to www.mycarinfo.com.my.

2. Click on “NCD Enquiry”.

3. Select “Find Out Your NCD Online”.

4. Enter your Vehicle Registration Number and NRIC (or Business Registration Number for company cars).

5. Accept the terms, complete the CAPTCHA, and click “Get My NCD Report”.

6. You’ll receive details like your current NCD percentage and effective dates.

mycarinfo get NCD online

Alternatively, you can contact your insurance company or check through their online portal.

Why Maintaining a Good NCD is Important for You

Having a high NCD means significant savings on your insurance premium. 

Imagine paying 55% less for your insurance every year just because you’ve been a careful driver! 

It also serves as a reward for responsible driving habits and helps keep insurance affordable.

Tips for Maintaining and Protecting Your NCD

Here are some practical tips to keep your NCD intact:

  • Drive safely – Avoid reckless driving and accidents.
  • Think before claiming – If it’s a minor repair, compare the cost with losing your NCD.
  • Understand your policy – Know what affects your NCD.
  • File a police report for no-fault accidents – This protects you from false third-party claims.
  • Get windscreen coverage – This ensures small windscreen damage won’t impact your NCD.
  • Consider NCD protection – Some insurers offer an add-on that allows you to retain your NCD even after a claim.

Insurance NCD Transferability and Expiry

  • Your NCD belongs to you, not your car.
  • You CAN transfer your NCD to a new car if you sell your old one.
  • You CAN transfer your NCD to a new car you buy, but the first car’s NCD will reset.
  • You CAN carry your NCD when switching insurers.
  • You CANNOT transfer your NCD to another person, even family members.
  • NCD doesn’t expire, but it can decrease if you don’t renew your insurance for a long time.

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Conclusion: Drive Safe, Save Smart with Your NCD

Now that you understand how insurance NCD works, it’s time to put that knowledge to good use. 

By maintaining a clean driving record and making smart insurance decisions, you can enjoy lower premiums and bigger savings year after year.

So, the next time you renew your insurance, check your NCD and make sure you’re getting the best deal possible. 

Drive safe, save money, and enjoy the perks of being a responsible driver!

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