Introduction
Ever wondered why your car insurance premium gets cheaper each year, even though your car’s value drops slowly? The answer lies in NCD — No Claim Discount in Car insurance . Many car owners don’t realise they can save hundreds of ringgit simply by maintaining a clean driving record. In this article, we’ll explain what NCD is, how it’s calculated, and how you can check your NCD status online.
What Is NCD (No Claim Discount)
NCD is a discount given to vehicle owners who have not made any insurance claims in the past 12 months.
It encourages careful driving — the longer you go without filing a claim, the higher your discount becomes.
This discount applies only to Comprehensive and Third Party, Fire & Theft (TPFT) coverage, not for basic Third Party policies.
NCD Rate by Claim-Free Years
| Claim-Free Years | NCD Percentage | Estimated Discount (RM) for RM1,000 Premium |
| 1 year | 25% | RM250 |
| 2 years | 30% | RM300 |
| 3 years | 38.33% | RM383 |
| 4 years | 45% | RM450 |
| 5 years & above | 55% (maximum) | RM550 |
How to Calculate NCD Manually
Example:
- Original premium: RM1,200
- NCD: 45%
- Discount = RM1,200 × 45% = RM540
- Premium after NCD = RM660
If you renew via platforms like Bjak, the system automatically applies your NCD discount in the quotation — no manual calculation needed.
How to Check Your Car Insurance NCD
You can check your NCD for free through the following:
- Bjak.my – Enter your car plate number and IC → your NCD rate appears instantly.
- MyCarInfo – Provided by PIAM (General Insurance Association of Malaysia).
- Contact your insurance company – Useful for verifying claim records or transferring NCD to a new car.
Conclusion
NCD isn’t just a small discount — it’s a reward for careful, responsible driving.
Avoid making minor, unnecessary claims, as each one can wipe out your NCD savings. With a clean record for five years, you can enjoy the maximum 55% discount, saving a significant amount each time you renew.
Read More:
How NCD (No Claim Discount) Reduces Insurance Premiums
