Top 10 Questions People Google About NCD
Your No Claim Discount (NCD) is one of the biggest factors affecting your car insurance premium in Malaysia, though it is also one of the most misunderstood.
Here are top 10 NCD questions in Malaysia, answered clearly and simply.
1. What is NCD in Car Insurance?
NCD (No Claim Discount) is a reward given to drivers for not making a claim during their policy year. The longer you remain claim-free, the higher your NCD, up to 55%.
2. What is The Maximum NCD in Malaysia?
The maximum NCD for private cars in Malaysia is 55%. It actually increases progressively:
1st Renewal: 25%
2nd Renewal: 30%
3rd Renewal: 38.33%
4th Renewal: 45%
5th Renewal and beyond: 55%
3. Will NCD Reset After a Claim?
Yes, if you make an own damage claim, your NCD will typically reset to 0% at the next renewal.
4. Does Windscreen Claim Affect NCD?
Depends. If you purchased a windscreen add-on, claiming it typically does not affect your NCD. However, it can affect your NCD if you do not have windscreen add-on coverage.
5. If the Other Driver Is at Fault, Will My NCD Be Affected?
No, if the third party is confirmed fully at fault and their insurer pays for the damage, your NCD usually remains intact.
AI Generated Image: Illustration of a blue car with a magnifying glass and question icons, representing common questions about NCD (No Claim Discount).
6. Can I Transfer My NCD to Another Car?
In Malaysia, you can transfer your NCD:
From one vehicle to another
When you sell your old car
When you buy a new car
NCD belongs to the policyholder, not the vehicle.
7. Can I transfer my NCD to someone else?
No. NCD cannot be transferred to another person, even family members. It is tied to your name and identity (IC/passport).
8. How Do I Check My NCD Percentage?
You can check your NCD through:
Motor insurance schedule
Your insurer
Renewal platforms when getting a quote.
Note: Always verify your NCD before renewing.
9. Does NCD Expire If I Don’t Renew?
Yes. If you do not renew your policy for more than 12 months, your NCD may lapse. Always renew within the allowed period to preserve your discount.
10. Is It Worth Claiming for Small Damage?
It depends. If repairs costs are lower than the long-term minimum increase caused by losing your NCD, it may be better to pay out-of-pocket.
Sometimes protecting your NCD saves more money in the long run.
Protect Your NCD, Protect Your Premium
Understanding how No Claim Discount (NCD) works can make a big difference to your car insurance costs over time. From knowing when your NCD resets to understanding which claims won’t affect it, a little knowledge can help you avoid expensive surprises at your renewal.
Before making a claim, take a moment to consider the long-term impact on your premium. Sometimes protecting your NCD today can save you significantly more in the year ahead. When it comes to car insurance, smart drivers don’t just focus on repairs, they think about long-term savings too.
