First, What Exactly Is NCD?
Your No Claim Discount (NCD) is a reward for not making claims during your policy period.
According to Persatuan Insurans Am Malaysia (PIAM):
NCD increases over time if you don’t file any claims
It can go up to 55% for private cars
Once you make a claim, your NCD may be reduced or reset to 0%
NCD = how claim-free you are, not how “rule-abiding” you are on the road.
Do JPJ Summons Affect Your NCD?
No. JPJ or PDRM summons do NOT directly affect NCD.
Here’s why:
Summons (speeding, illegal parking, etc.) are handled by enforcement bodies like Jabatan Pengangkutan Jalan (JPJ) and Polis Diraja Malaysia (PDRM)
NCD is managed by your insurance provider, based on your claims history.
So even if you have unpaid summons:
Your NCD stays the same
But your road tax renewal may be blocked
Then Why Do Summons Feel Like They Affect Everything?
While they don’t impact NCD, they affect other critical processes.
According to the PDRM MyBayar Saman portal:
Outstanding summons can lead to blacklisting
Preventing:
Road tax renewal
Driving license renewal
Drivers often confuse this blockage with an “insurance issue” when it’s actually a JPJ/PDRM enforcement issue.
Make Renewals Easier with Drive+
If you’re juggling insurance and road tax, PolicyStreet can make the process easier.
PolicyStreet’s Drive+ membership was created to help Malaysians save money and reduce hassle when renewing car insurance and road tax online.
When renewing your car insurance with PolicyStreet, you can choose from three Drive+ membership tiers, starting from RM49.90, depending on how much you want to save.
Each Drive+ tier gives you a road tax discount of up to RM120 off based on your membership tier. Higher tiers offer bigger savings, making them especially worthwhile for drivers with higher road tax amounts.
Beyond road tax discounts, Drive+ members enjoy additional vouchers and discounts of worth up to RM240. These benefits help drivers reduce upfront costs, avoid extra fees, and manage rising car expenses more effectively.
In short, Drive+ turns a routine insurance and road tax renewal into a smarter, more affordable car ownership experience.
What Actually Affects Your NCD?
To keep your NCD high, focus on these:
1. Insurance Claims
Filing an insurance claim (especially if your are al fault) usually resets your NCD
Even small claims can impact your discount
2. Type of Claim
Some claims (like third-party fault claims) may not affect your NCD, but this depends on your insurer
3. Continuous Coverage
Letting your insurance lapse may affect your NCD eligibility when restarting
Common Misconceptions
“I got a summons, so my insurance will be more expensive.”
Not directly.
Your premium may increase due to:
Claims history
Market pricing
Summons alone do not reduce your NCD or directly increase your premium.
Know What Affects What
Understanding the difference between summons and NCD saves you from unnecessary stress.
Summons affect renewals (road tax and license)
NCD is affected by claims only
Once you separate the two, managing your car ownership becomes much simpler and a lot less confusing.
Frequently Asked Questions
1. Does a traffic summon reduce my NCD?
No. NCD is based on your insurance claims history, not traffic offences.
2. Can unpaid summons block my road tax renewal?
Yes. If you are blacklisted by JPJ or PDRM, your renewal will be blocked until fines are settled.
3. What causes my NCD to reset to 0%?
Making an insurance claim, especially if you’re at fault, can reset your NCD.
4. Can I check and pay JPJ summons online?
Yes. You can use platforms like MyJPJ, MyEG, or the PDRM MyBayar Saman portal.
5. Does NCD affect my insurance premium?
Yes. A higher NCD gives you a larger discount, reducing your premium significantly.
