🚗 What is No Claim Bonus (NCB) in Car Insurance?
If you’ve never made a claim on your car insurance, chances are you’ve received a No Claim Bonus (NCB). It’s a reward from your insurer for being a safe and responsible driver.
In Malaysia, NCB is a discount on your insurance premium when you renew your policy. The longer you go without making a claim, the higher your NCB — up to 55% in savings.
Think of it as a “thank you” from your insurer for not making any claims within your coverage year.
🧮 How is NCB Calculated?
The NCB percentage increases with every claim-free year:
| Claim-Free Year | NCB Discount (%) |
|---|---|
| 1st year | 25% |
| 2nd year | 30% |
| 3rd year | 38.33% |
| 4th year | 45% |
| 5th year | 55% (Maximum) |
The discount is only valid for private vehicles with comprehensive or third-party, fire & theft coverage.
❌ What Causes You to Lose NCB?
NCB is tied to your vehicle, not you. That means if you make a claim on that vehicle, your NCB could be reset to 0%, even if the accident wasn’t your fault.
You risk losing your NCB if:
- You claim for own damage repairs under comprehensive insurance.
- You are at fault in an accident.
- You make a theft, fire, or flood damage claim.
However, third-party claims (where the other party is fully at fault and pays for your loss) do not affect your NCB, provided it’s processed under the Knock-for-Knock agreement.
🛡️ Can You Transfer Your NCB?
Yes — NCB is transferable between insurers in Malaysia, and even if you switch cars.
You can:
- Transfer your NCB to a new car (if you sell your old one).
- Maintain your NCB even if you change insurance providers.
Important: You can only use your NCB on one active car at a time. If you own multiple cars, NCB won’t apply to all — only to the one that holds the claim-free record.
🔁 NCB Reinstatement: Is It Possible?
If you lose your NCB due to a claim, some insurers may offer NCB Reinstatement after a period of claim-free driving. This depends on the insurer’s policy.
Another option is to ask about NCB Protection Add-On during your insurance renewal. It allows you to make one claim without affecting your NCB — useful if you want peace of mind.
📑 How to Check Your NCB in Malaysia
Want to know your current NCB percentage? You can check via:
- Your current insurance provider’s portal.
- JPJ eINSKEN portal under the NCB Check section.
- Your renewal quotation summary.
Knowing your NCB helps you compare insurance quotes more accurately and avoid paying more than necessary.
💸 How NCB Helps You Save Money
Let’s say your annual insurance premium is RM1,500. With an NCB of 55%, your new premium could be RM675 — a massive saving of RM825 just for being claim-free.
In times where fuel, food, and daily expenses are rising, this bonus really helps stretch your budget.
⚠️ Key Tips to Maintain Your NCB
- Drive safely and avoid accidents — even minor ones.
- Consider paying small repairs out-of-pocket if they cost less than your NCB savings.
- Install a dashcam to support claims if you’re not at fault.
- Get the right policy with add-ons like windscreen and NCB protection.
📝 Summary: NCB in a Nutshell
| Feature | Details |
|---|---|
| What is NCB? | Discount for not making claims |
| Max Discount | 55% after 5 years |
| Applies To | Comprehensive & TPFT policies |
| Tied To | The car, not the driver |
| Transferable? | Yes |
| Can Lose It? | Yes, after making a claim |
| Protect It? | Yes, via NCB protection add-on |
🌐 Ready to Renew & Save?
Don’t let a small claim cost you your NCB. Compare car insurance plans with or without NCB protection on MetaFin to make a smarter choice today.