How to Fix Your Car Without Losing Your NCD

Accidents happen. When your own driving mistake causes damage to your car, one of the first questions you face is: “Can I claim from insurance?” In Malaysia, the answer is yes, but you need to understand how your own damage (“OD”) claim works, what it covers, and how it affects one of your biggest motor insurance assets: the No Claim Discount (NCD). This guide breaks down the entire process in clear terms for everyday Malaysian drivers.

What Is an Own Damage Claim?

In Malaysia, a No-Fault Damage Claim (NFDC) is also known as Own Damage Knock-for-Knock (OD-KFK), allowing you to claim through your own insurer when the accident is not your fault without affecting your NCD.

While, an Own Damage (OD) claim is made under your own comprehensive car insurance policy to pay for repairs to your vehicle after an accident that is your fault. This type of claim only applies to comprehensive policies, it does not apply to basic third-party insurance. In Malaysia, a comprehensive policy is the only coverage that pays for accidental damage to your own vehicle.

Making an OD claim typically resets your NCD to 0% at your next renewal because you are claiming under your own policy for damage you caused.

Compare car insurance options and get the right coverage for your situation in a few steps here.

How to Decide Whether to Claim

Before submitting an OD claim, evaluate:

• Repair cost versus NCD loss: If repair cost is low, paying out-of-pocket may be cheaper long-term. To know more about this, read our guide.

• Car value: If your car is old or low value, losing your NCD may outweigh insurance benefits.

• Alternative options: If another driver is at fault, you may be eligible for a no-fault claim such as NFDC/OD-KFK) instead.

Step-by-Step: Claiming Your Own Damage

1. At the Scene

• Check for injuries and ensure safety.

• Record details: other driver’s name, IC, vehicle number, and insurer if available.

• Take clear photos of damage to both vehicles and the scene.

2. Police Report

In Malaysia, you must lodge a police report, typically within 24 hours of the accident. The police report is essential for any claim.

3. Notify Your Insurer

Contact your insurer or agent promptly and explain the situation.

4. Prepare Documents

Standard documents usually include:

• Police report

• Completed claim form

• Driver’s license and IC

• Vehicle ownership documents

• Photos and repair estimates

5. Repair and Settlement

Send your car to an authorised panel workshop as required by most insurers; this can speed up claim approval and payout.

Your insurer will assess damage, approve repairs, and then issue payment less any applicable excess amounts as stated in your policy.

How Own Damage Claims Affect Your NCD

Your No Claim Discount (NCD) is a valuable part of motor insurance that reduces your premium for each year you don’t make a claim. If you make a standard damage claim, most insurers will reduce your NCD to zero at renewal. To know more about this, read our guide.

For a detailed explanation of how NCD works, read our article ‘NCD Dropped to 0%? Here's what you can do’ which discusses how you can check and fix your NCD.

Drive+ Membership and Claim Support

When you’re dealing with repairs and paperwork, having extra support matters. Drive+ Membership by PolicyStreet offers advantages that can ease the claims and renewal process:

• Priority assistance for car insurance renewal

• Step-by-step guidance for submitting claims

• Road tax discounts (up to RM90) and free handling fee

• Loyalty rewards up to RM80 that include renewal discounts

These perks can help you save money and reduce stress during an already difficult time.

Conclusion

An own damage claim lets you fix your car after an accident you caused, but it typically impacts your NCD. Before deciding to claim, compare repair costs with the long-term cost of losing your NCD. If the other driver was clearly at fault, explore options like NFDC/OD-KFK to preserve your benefits.

Understanding how your insurance works and knowing your options will help you navigate claims with confidence.

Frequently Asked Questions:

1. Will an own damage claim always reset my NCD?

Yes, if it’s a standard damage claim for an at-fault accident, your NCD will usually reset to 0% at renewal.

2. Do I need to notify the police?

Yes. A police report is nearly always required for any motor insurance claim in Malaysia.

3. Can I still get repairs if I pay myself?

Yes, you can pay for repairs yourself, but this may be cheaper than losing your NCD for minor damage.