NCD Rate Table Malaysia (0%–55% Explained)
If you are renewing your motor insurance, understanding the NCD rate table in Malaysia helps you estimate how much discount you are entitled to.
In Malaysia, the No Claim Discount (NCD) increases progressively for each claim-free year, up to a maximum of 55% for private cars.
Below is the latest NCD structure used by Malaysian insurers.
NCD Rate Table for Private Cars in Malaysia
Claim-Free Years | NCD Percentage |
1 year | 25% |
2 years | 30% |
3 years | 38.33% |
4 years | 45% |
5 years or more | 55% |
This rate applies to most private passenger vehicles.
NCD Rate for Other Vehicle Types
Different vehicle categories have different maximum NCD caps.
Commercial Vehicles
- Maximum: 40%
Motorcycles
- Maximum: 25%
Always confirm with your insurer, as policy types may vary.
How the NCD Percentage Is Applied
Your NCD is calculated as a percentage discount on the basic premium, not the total premium.
Example Calculation
If your basic premium is RM1,500
And your NCD is 55%
You save:
RM1,500 × 55% = RM825 discount
You pay:
RM1,500 – RM825 = RM675 (before additional charges)
Other components such as:
- SST
- Stamp duty
- Additional coverage riders
are calculated separately.
When Does NCD Increase?
Your NCD moves up one level if:
- You complete a full policy year
- No claims are made during the period
The increase typically updates upon renewal.
What Resets Your NCD to 0%?
Your NCD usually resets if you make:
- An own damage claim
- A claim where fault is established
However, third-party claims where you are not at fault may not affect your NCD, depending on insurer handling.
Is the NCD Rate Standardised in Malaysia?
Yes.
The rate table is generally standard across insurers because it follows industry practice regulated under Malaysia’s motor insurance framework.
However, insurers may offer:
- NCD Protector add-ons
- Special campaign benefits
How to Check Your Current NCD Percentage
Before renewal, you can verify your percentage via:
- MyCarInfo (Insurance Services Malaysia)
- Your insurer’s customer portal
If you are unsure how the system works, refer to our complete guide on insurance NCD meaning in Malaysia to understand how the discount structure operates.
Frequently Asked Questions About NCD Rate in Malaysia
Is 55% the maximum NCD in Malaysia?
Yes, for private cars.
How long does it take to reach 55%?
Five consecutive claim-free years.
Does windscreen claim affect NCD?
No, if claimed under windscreen coverage.
Final Thoughts
Understanding the NCD rate table in Malaysia allows you to:
- Estimate renewal costs
- Avoid surprises after a claim
- Plan insurance strategy properly
Always verify your percentage before renewing your policy to ensure the correct discount is applied.
Need Help With Your Car Insurance Claim?
We’re here to guide you on:
✅ Claim advice
✅ NCD retention
✅ Best-value insurance plans
Related NCD Guides in Malaysia
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