{"id":2581,"date":"2025-05-22T03:42:09","date_gmt":"2025-05-22T03:42:09","guid":{"rendered":"https:\/\/metafin.com.my\/blog\/?p=2581"},"modified":"2025-08-23T22:12:30","modified_gmt":"2025-08-23T22:12:30","slug":"no-claim-discount-ncd-explained-for-malaysian-drivers","status":"publish","type":"post","link":"https:\/\/metafin.com.my\/blog\/no-claim-discount-ncd-explained-for-malaysian-drivers\/","title":{"rendered":"No Claim Discount (NCD) Explained for Malaysian Drivers"},"content":{"rendered":"\n

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.<\/p>\n\n\n\n

\ud83d\ude97 What Malaysian Drivers Should Know About No Claim Discount (NCD)<\/h2>\n\n\n\n

When you renew your car insurance in Malaysia<\/a>, you\u2019ll often see the term No Claim Discount (NCD)<\/strong> followed by a percentage. But what does it mean, and how does it affect your insurance premium?<\/p>\n\n\n\n

NCD is a discount offered to vehicle owners<\/strong> who have not made any insurance claims during their previous policy year. It\u2019s like a reward for being a careful driver \u2014 the longer you go without making a claim, the bigger the discount you\u2019ll receive on your next premium.<\/p>\n\n\n\n

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\ud83d\udcb0 How Much Discount Can You Get?<\/h3>\n\n\n\n

The General Insurance Association of Malaysia (PIAM)<\/strong> determines the NCD rate. Here’s a quick breakdown:<\/p>\n\n\n\n

Claim-Free Years<\/th>NCD Rate<\/th><\/tr><\/thead>
1st year<\/td>0%<\/td><\/tr>
After 1 year<\/td>25%<\/td><\/tr>
After 2 years<\/td>30%<\/td><\/tr>
After 3 years<\/td>38.33%<\/td><\/tr>
After 4 years<\/td>45%<\/td><\/tr>
After 5+ years<\/td>55%<\/td><\/tr><\/tbody><\/table>
NCD Table<\/figcaption><\/figure>\n\n\n\n

Example:<\/strong>
If your insurance premium is RM2,000 and you have a 55% NCD, you only pay RM900<\/strong> (excluding tax and stamp duty). That’s a significant saving!<\/p>\n\n\n\n

\u26a0\ufe0f What Affects Your NCD?<\/h3>\n\n\n\n

If you make a claim for own damage<\/strong>, your NCD will reset to 0%<\/strong> 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.<\/p>\n\n\n\n

\u2705 How to Keep Your NCD After an Accident<\/h3>\n\n\n\n

If the accident isn\u2019t your fault, you can still preserve your NCD<\/strong> by using the Own Damage Knock-for-Knock (ODKFK)<\/strong> claim \u2014 but only under these conditions:<\/p>\n\n\n\n