Learn how No Claim Discount (NCD) works, how it affects your car insurance premium in Malaysia, and how to protect it even after a claim.
🚗 What Malaysian Drivers Should Know About No Claim Discount (NCD)
When you renew your car insurance in Malaysia, you’ll often see the term No Claim Discount (NCD) followed by a percentage. But what does it mean, and how does it affect your insurance premium?
NCD is a discount offered to vehicle owners who have not made any insurance claims during their previous policy year. It’s like a reward for being a careful driver — the longer you go without making a claim, the bigger the discount you’ll receive on your next premium.
💰 How Much Discount Can You Get?
The General Insurance Association of Malaysia (PIAM) determines the NCD rate. Here’s a quick breakdown:
| Claim-Free Years | NCD Rate |
|---|---|
| 1st year | 0% |
| After 1 year | 25% |
| After 2 years | 30% |
| After 3 years | 38.33% |
| After 4 years | 45% |
| After 5+ years | 55% |
Example:
If your insurance premium is RM2,000 and you have a 55% NCD, you only pay RM900 (excluding tax and stamp duty). That’s a significant saving!
⚠️ What Affects Your NCD?
If you make a claim for own damage, your NCD will reset to 0% during the next renewal. Even if the accident was not your fault, claiming through your own policy without proper documentation can cause your NCD to be forfeited.
✅ How to Keep Your NCD After an Accident
If the accident isn’t your fault, you can still preserve your NCD by using the Own Damage Knock-for-Knock (ODKFK) claim — but only under these conditions:
- The third party is at fault, as confirmed by a police report
- The third party’s vehicle is properly insured
- There are no bodily injuries involved
- The third party is not a commercial vehicle (e.g. Grab, bus, etc.)
If your claim meets these, you can claim from your own insurer under ODKFK and still keep your NCD.
💡 Learn more about ODKFK claims on PIAM’s website.
🪟 What If Your Windscreen Is Damaged?
If a rock hits your windscreen, filing an Own Damage claim will cost you your NCD. To avoid this, consider adding a Windscreen cover to your policy.
This add-on allows you to make a windscreen claim separately — protecting your NCD while covering repair or replacement costs for windshields or sunroofs.
🔁 Can You Transfer NCD to a New Vehicle?
Yes, your NCD is tied to you as the car owner, not the car. If you sell your car and buy a new one, you can transfer your NCD to the new car.
But here’s a tip: if your NCD is not used within 12 months, it expires. So be sure to transfer it soon after your new purchase.
If you own multiple cars, you can maintain different NCDs for each one. You can also move your NCD from one car to another to enjoy a cheaper premium where it matters most.
🔍 Check your current NCD status using your car plate and IC number (secure and free).
🔑 Final Tips for Malaysian Drivers
- Stay claim-free to maintain your NCD
- Use ODKFK claims when you’re not at fault
- Add windscreen protection to avoid NCD loss
- Transfer your NCD promptly to your new vehicle
📱 Renew with Confidence on MetaFin
Renewing your car insurance on MetaFin’s DIY platform lets you compare plans, apply NCD and get the best deal for your car insurance.
Need help? Chat with our team anytime.