Maximise Savings: Malaysian Motor Insurance NCD Guide

Buckle up, savvy drivers! Ever heard of a cool perk called No Claim Bonus (NCB) or No Claim Discount (NCD) in Malaysian motor insurance? It’s like getting a high-five from your insurance company for being a road superhero—saving bucks while cruising safely. Let’s rev up and explore how this awesome bonus works and how you can make the most of it.

What is car insurance NCD or NCB?

No Claim Discount (NCD) or No Claim Bonus (NCB) is like a reward for your stellar driving behavior. It’s a little pat on the back from your insurance provider for being a superhero and not filing any claims during your insurance stint. In simple words, it’s a discount on your insurance premium. Every year you drive without making any claims, you level up your NCD. This percentage increases with each claim-free year, nudging you to keep up those safe driving habits.

Starting at ground zero when you get your policy, your NCD gains momentum. After five glorious years of being claim-free, you hit the jackpot with a whopping 55% discount on your insurance premium when it’s time for a renewal. Sweet, right?

Different NCD stages – The bonus car insurance journey

PIAM, also known as the Persatuan Insurans Am Malaysia, sets the NCD rate, which differs based on the vehicle type. There are various NCD categories like private cars, motorcycles, and commercial vehicles. The maximum discount you can snag is 55% for cars and 25% for both motorcycles and commercial vehicles. Check out the NCD percentage rates for these different vehicle types below.

Claim Free Period Private Car NCD (%)Motorcycle NCD (%)Commercial Vehicle NCD (%)
1st Year000
2nd Year251515
3rd Year302020
4th Year38.332525
5th Year452525
6 Year Onwards552525

How do I check my current NCD online?

It’s easy. Many car insurance providers and database websites offer this service. Hop onto websites like and for a quick NCD check. Just pop in your car’s plate number and your passport or MyKad number into the designated fields, hit submit, and voila! The system will fetch your current NCD percentage, your upcoming NCD effective date, and your insurance policy’s coverage period. It’s that simple!

Earning and keeping your NCD

Picture this: you start with a clean slate when you get your insurance policy—your NCD is at ground zero. Now, every year you hit the road without filing a claim, you level up that NCD. It’s like earning stars in a game, but this one’s all about safe driving!

Let’s Crunch Some Numbers

Say your annual insurance premium without any NCD is around RM 2,000. Now, with that impressive 55% NCD, you could potentially slash that down to just RM 900! That’s a whopping RM 1,100 saved—hello, extra cash in your pocket!

Even at lower NCD percentages, the savings are nothing to scoff at. With a 30% NCD, that RM 2,000 premium could drop to RM 1,400. That’s RM 600 saved—imagine what you could do with that extra dough!

Tips and tricks to keep your NCD shining bright

Alright, here’s the secret sauce to keep that NCD soaring:

  • Drive Like a Pro: Stick to the rules, stay alert, and be a courteous driver. Safe driving isn’t just about NCB; it’s a superpower!
  • Pamper Your Ride: Regular check-ups for your vehicle are like spa days for your car. A happy car means fewer surprises and fewer claims.
  • Skip Those Tiny Claims: Sometimes those tiny dings and scratches might seem bothersome, but holding off on claiming for them could mean keeping your NCD shining bright. Save it for when it truly counts!

Remember, one claim can reset your NCD back to square one. So, let’s keep those roads smooth and your NCB soaring high!

Can I keep my NCD even after making a claim?

Yes, you’ve got two scenarios that let you hang onto that NCD:

(a) If the accident’s clearly not your fault- gotta prove it with a police report and make a No-Fault Own Damage claim (NFOC) with the insurance provider of the other party involved in the incident.

(b) Got cool add-ons in your policy, like a windscreen add-on? You can claim under these without waving goodbye to your NCD!

(c) If you or the other party decides to handle the repair expenses without making an insurance claim, it’s typically for minor accidents with lower repair costs. However, you might also opt to pay for the repairs directly if it ends up being cheaper than the savings you’d get from your NCD. Some drivers go for this choice, especially if their regular insurance premium is on the pricey side.

Can I transfer NCD to my new car?

NCD can’t tag along if you sell your wheels to someone else. But good news is, it can be transferred with conditions. Transfer your NCD to another car and keep those sweet insurance discounts flowing if:

  • Both cars should belong to you: Yup, the old and shiny new ones need to be registered under your name and ID card. So, if you’re swapping cars within the family, make sure to update the ownership details at the Road Transport Department (JPJ) first.
  • Stick to the same vehicle type: Your NCD can only travel between similar vehicles, like from one private car to another or from a motorcycle to its twin. Why? ‘Cause the NCD rates dance differently for different vehicle types.

How can I transfer NCD to my new car?

Making the move with your NCD to a new car in Malaysia is a breeze! Follow the simple guide below:

  1. Gather Your Documents: Prepare necessary documents like a copy of your MyKad and banking details.
  2. Visit Your Insurance Provider: Head to the nearest branch of your old car’s insurance provider. Fill out the NCD transfer form, which allows you to move your NCD from your previous car to the new one. Once approved, you’ll receive a copy of the form.
  3. Settle Any Outstanding Payments: If there’s any outstanding premium balance, make sure to clear it before renewing the insurance for your new car. Payment methods usually include cash or online options.
  4. Renew Your New Car’s Insurance: Renew the insurance for your new car and provide the required documents, including the NCD transfer form obtained in step 2.
  5. Consider Expired Insurance: If your previous car’s insurance has expired, you can renew it and reset its NCD to 0%. Ensure you present the latest Vehicle Ownership Certificate (VOC) displaying the highest NCD rate you held. This facilitates transferring the NCD to your new car when renewing its insurance.
  6. Verify Your New NCD: Double-check your new NCD rate and ensure all information is accurately updated.

Final pit stop: It’s time to rev up your NCD adventure

So, fellow roadsters, that’s the lowdown on NCD—it’s not just about savings; it’s about being a smart, safe driver and reaping the rewards. Keep those wheels rolling, avoid those claims, and watch those NCB benefits soar. It’s your road to savings, your bonus for being a driving rockstar!

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