An ISM NCD check in Malaysia is one of the most important steps insurers take when renewing or issuing car insurance. It helps verify your No Claim Discount (NCD), confirms your past insurance history, and ensures your premium is calculated fairly and accurately.
Yet, many Malaysian drivers are unfamiliar with how ISM works or why it sometimes causes delays during renewal. This guide explains everything you need to know in simple, practical terms, so you can avoid confusion and protect your NCD.
What Is ISM in Malaysian Car Insurance?
Insurance Services Malaysia Berhad (ISM) is an industry-wide database used by insurance companies and takaful operators across Malaysia.
Think of ISM as a central record system that stores essential motor insurance information. Before an insurer issues or renews your policy, they will refer to ISM to verify your details.
Insurers use ISM to:
- Confirm your NCD percentage
- Check your previous insurance provider
- Review policy validity and claims history
- Prevent duplicate or fraudulent NCD usage
Because ISM is used industry-wide, it ensures consistency and fairness for both insurers and vehicle owners.
đź”— Official ISM website:
https://www.ism.org.my
Understanding NCD (No Claim Discount) in Malaysia
No Claim Discount (NCD) is a reward given to vehicle owners who do not make any insurance claims during their policy period.
The longer you drive without making a claim, the higher your NCD—and the lower your car insurance premium.
Standard NCD Rates in Malaysia
| Claim-Free Years | NCD Percentage |
|---|---|
| New policy | 0% |
| 1 year | 25% |
| 2 years | 30% |
| 3 years | 38.33% |
| 4 years | 45% |
| 5 years & above | 55% (maximum) |
These rates are applied consistently across Malaysia and are governed under Bank Negara Malaysia’s motor insurance framework.
đź”— Bank Negara Malaysia (BNM):
https://www.bnm.gov.my
What Is an ISM NCD Check?
An ISM NCD check is the process where insurers verify your NCD and insurance history using the ISM database.
This check is usually done when:
- Renewing car insurance
- Switching insurance providers
- Buying insurance for a used car
- Transferring vehicle ownership
- Reactivating a lapsed policy
Without a successful ISM check, insurers cannot confirm your eligibility for discounts or finalise your policy.
What Information Is Stored in ISM?
When an insurer performs an ISM check, they can view:
- Vehicle registration number
- Current NCD percentage
- Previous insurance company
- Policy start and expiry dates
- Claims history (if applicable)
- Ownership status
This information allows insurers to price your policy accurately and reduce disputes later.
Can Vehicle Owners Check ISM Records Themselves?
❌ No. ISM is not accessible to the public.
Only:
- Licensed insurance companies
- Registered insurance agents
are authorised to access ISM records.
If you want to confirm your NCD or insurance history, you will need to:
- Contact your insurance agent
- Check with your current insurer
- Use a trusted online insurance platform that handles ISM verification on your behalf
Common Issues During ISM NCD Checks in Malaysia
Many renewal delays happen due to data mismatches found during ISM checks. Below are the most common causes:
1. Lapsed Insurance Policy
If your insurance has expired for too long, your NCD may:
- Become inactive
- Be reduced
- Reset to 0%
2. NCD Already Used on Another Vehicle
NCD can only be applied to one vehicle at a time. If it’s already in use, it cannot be duplicated.
3. Ownership Transfer Not Updated
If a vehicle was sold but ownership records were not updated properly, ISM may still reflect the previous owner.
4. Recent Accident Claims
Claims may take a few working days to appear in ISM, especially if they were submitted recently.
How Past Insurance History Affects Your Premium
Your past insurance record plays a key role in how insurers assess risk.
Drivers with:
- Continuous coverage
- Minimal or no claims
- Properly updated ownership records
are generally seen as lower risk, which can result in smoother renewals and more competitive premiums.
ISM vs MyJPJ: What’s the Difference?
Many Malaysians assume MyJPJ shows insurance details, but each system serves a different purpose.
| System | Function |
|---|---|
| ISM | Insurance & NCD verification |
| MyJPJ | Road tax & vehicle records |
| JPJ | Vehicle registration authority |
Insurance details must be verified in ISM before road tax updates appear in MyJPJ.
đź”— JPJ Malaysia:
https://www.jpj.gov.my
How to Avoid ISM & NCD Problems When Renewing Insurance
To prevent delays or NCD loss, consider these practical tips:
- Renew your insurance before expiry
- Avoid making small claims when possible
- Ensure ownership transfers are properly recorded
- Keep previous policy documents
- Use licensed agents or reliable online platforms
You can also renew car insurance online in Malaysia through trusted platforms like MetaFin, where ISM verification and insurer checks are handled smoothly:
👉 https://metafin.com.my/car-insurance-online.php?src=blog
Why ISM NCD Checks Protect Malaysian Drivers
Although ISM checks may feel inconvenient, they exist to:
- Prevent insurance fraud
- Protect genuine claim-free drivers
- Maintain fair premium pricing
- Improve industry transparency
Without ISM, misuse of NCD would increase premiums across the board.
Frequently Asked Questions About ISM NCD Checks
Can I check my ISM NCD myself?
No. ISM records are only accessible by licensed insurers and insurance agents in Malaysia.
Does NCD reset after an accident?
Yes. Most claims will reset your NCD unless you have NCD protection coverage.
How long does ISM updating take?
Usually between 1 to 3 working days, depending on the insurer.
Final Thoughts
Understanding how ISM NCD checks and past insurance history work can help Malaysian drivers avoid renewal delays, protect their NCD, and make better insurance decisions.
Whether you are renewing annually or switching providers, knowing how ISM works puts you in control—and ensures a smoother, stress-free experience.