If you’ve ever renewed your car insurance and noticed a discount on your premium, that’s likely your No Claim Discount (NCD) in action.
But what exactly is NCD? How is it calculated? And can you lose it if you make a claim?
In this article, we break down what NCD means in the context of Malaysian motor insurance, how to maintain it, and how much you can save over time.
What Is NCD (No Claim Discount)?
NCD stands for No Claim Discount. It’s a reward given by insurance companies to policyholders who do not make any claims during their coverage period.
It works like a loyalty bonus—if you go claim-free for a year, you’ll enjoy a percentage discount on your premium during renewal.
NCD Rates in Malaysia (Private Cars)
The discount increases progressively over time:
No. of Claim-Free Years | NCD Rate |
After 1 year | 25% |
After 2 years | 30% |
After 3 years | 38.33% |
After 4 years | 45% |
After 5 years and above | 55% (maximum) |
So, if your premium is RM2,000 and you’ve maintained a 55% NCD, you only pay RM900—a savings of RM1,100.
When Will You Lose Your NCD?
You’ll lose your NCD entirely (reset to 0%) if:
- You make an Own Damage Claim (OD)
- You claim windshield damage without a specific add-on
- Your claim involves your fault in an accident
- You file a theft or total loss claim
This is why many drivers hesitate to claim minor damages—they don’t want to lose years of built-up NCD.
How to Keep Your NCD Even After an Accident
You may retain your NCD if:
1. You Claim Under Third Party Insurance
If the other party is at fault and you claim from their insurance, your NCD is untouched.
2. You Have a Windscreen Add-On
If you’ve purchased windscreen coverage as an add-on, you can replace your glass without affecting NCD.
3. You Use No-Fault Own Damage Claim (NFOC)
If the accident wasn’t your fault, and the third party is identifiable, some insurers allow you to claim under your own insurance without affecting your NCD.
📌 Ask your insurer if they support NFOC. You’ll need the third party’s police report and details.
Can You Transfer NCD?
Yes—NCD is transferable under certain conditions:
Scenario | Transfer Allowed? | Notes |
From old car to new car (same owner) | ✅ Yes | Common when selling and upgrading vehicles |
Between spouses | ❌ No | NCD is non-transferable between individuals |
Between motorcycles and cars | ❌ No | Separate NCD systems for different vehicle types |
From company car to personal car | ❌ No | Company-owned NCD is not transferable |
To transfer NCD, visit your insurer or use the e-NCD system via MyCarInfo to check and validate your record.
How to Check Your NCD Status
You can verify your current NCD online via:
- MyCarInfo NCD Checker
- Through your insurance agent or company portal
- On your latest renewal notice
FAQs About NCD in Malaysia
Can I appeal if my NCD was wrongly removed?
Yes. Contact your insurer with supporting documents (e.g. police report showing third party fault) and request a review.
Can I buy back my NCD after a claim?
Generally, no, but you can avoid future losses with add-ons like NCD Protector (if offered by your insurer).
What is an NCD Protector?
This is an optional add-on that preserves your NCD even if you make one claim per year. It’s often offered to drivers with 55% NCD.
Final Tips to Maximise Your NCD
- Drive safely and avoid minor accidents
- Consider paying out-of-pocket for small repairs
- Always file a third party claim if you’re not at fault
- Ask about NFOC and NCD Protectors
- Use the NCD Checker before renewing with a new insurer
Final Thoughts
Your No Claim Discount is one of the best ways to reduce your insurance costs over time. By understanding how it works and how to protect it, you can save hundreds—or even thousands—on your premiums.
At Autore.my, we help Malaysian drivers make informed insurance decisions, protect their NCD, and navigate claims with confidence.
Need Help With Your NCD or Insurance Renewal?
We’re here to guide you on:
✅ Claim advice
✅ NCD retention
✅ Best-value insurance plans