If you’ve just been involved in an accident, one of the first concerns is:
Will I lose my NCD?
In Malaysia, your No Claim Discount (NCD) may reset depending on the type of claim made and whether you are at fault.
Here’s exactly how it works.
Does an Accident Automatically Reset Your NCD?
No — not automatically.
Your NCD only resets if:
- You make an own damage claim
- Fault is established against you
- The insurer cannot recover costs from a third party
If no claim is made, your NCD remains unaffected.
Scenario 1: You Make an Own Damage Claim
If you claim under your own policy to repair your car:
- Your NCD will typically reset to 0% at renewal
- The reset applies regardless of repair cost
Example:
Before accident:
- 55% NCD
- Basic premium RM1,500
- You pay RM675
After claim reset:
- 0% NCD
- You pay RM1,500
- That’s an RM825 difference next year.
Scenario 2: Third-Party At Fault
If another driver is fully responsible:
- You may claim against the third party
- If your insurer successfully recovers costs
- Your NCD may remain intact
This depends on claim handling and recovery outcome.
Always confirm with your insurer before assuming protection.
Scenario 3: Windscreen Claim Only
Windscreen claims usually:
✔ Do NOT affect NCD
✔ Are covered under specific add-on coverage
This is one of the few claim types that typically preserves your discount.
Scenario 4: You Have NCD Protector Add-On
Some insurers offer an NCD Protector.
With this add-on:
- Your NCD may be protected for one claim per policy period
- Percentage may remain unchanged despite a claim
However:
- It increases your premium slightly
- Conditions vary by insurer
Always review policy wording carefully.
How Long Does It Take for NCD Reset to Reflect?
Your NCD reset typically appears:
- At the next policy renewal
- After claim is officially processed
You can verify updated percentage via:
- MyCarInfo (Insurance Services Malaysia)
- Your insurer’s renewal notice
Should You Claim or Pay Repair Cost Yourself?
Before making a claim, consider:
- Repair cost
- Long-term premium increase
- Loss of accumulated NCD
If repair cost is small (e.g. minor bumper damage), paying out-of-pocket may be financially smarter.
For major accidents, proper claim filing is essential.
What If You Are Partially at Fault?
If liability is shared:
- Insurer may still treat it as an own damage claim
- NCD reset may apply
Each case is assessed individually.
Can You Restore NCD After Reset?
No.
Once reset to 0%, you must rebuild your NCD year by year:
Year 1 claim-free → 25%
Year 2 → 30%
Year 3 → 38.33%
Year 4 → 45%
Year 5 → 55%
It takes five consecutive claim-free years to regain maximum discount.
Frequently Asked Questions About NCD After An Accident
Will reporting an accident reset NCD?
No. Only making a claim affects NCD.
Does third-party claim affect my NCD?
Not if you are not at fault and recovery succeeds.
Does small claim reduce NCD partially?
No. NCD usually resets fully to 0%.
Final Thoughts
An accident does not automatically mean losing your NCD — but making an own damage claim usually will.
Before proceeding with a claim, calculate the financial impact carefully. Protecting your accumulated discount can result in substantial long-term savings.
If you’re unsure how the NCD system works overall, read our complete guide on insurance NCD meaning in Malaysia to understand the full structure before renewing your policy.
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
Continue learning about No Claim Discount (NCD) in Malaysia: