Introduction
Many car owners in Malaysia often wonder: if I make a claim, will my No Claim Discount (NCD) be affected? The answer depends on the type of claim and who is at fault. In this article, we’ll explain the situations where NCD is affected and when it remains safe.
What Is NCD?
The NCD (No Claim Discount) is a discount given when you don’t make any claims within a year. The longer you go without claiming, the higher your discount can be — up to 55% for private cars.
However, if you make a claim, this discount can be reset. For example, if you file an Own Damage claim, your NCD may drop back to 0%.
When NCD Is Not Affected
The good news is not all claims will reduce your NCD. Situations where your NCD remains safe include:
- Third Party Claim: If the accident was not your fault.
- Windscreen Claim: Considered an add-on, not a full claim.
- Fire or Theft Claims: Provided your policy covers these risks.
In these cases, your NCD stays intact.
When NCD Is Lost
If you make a claim under your own policy (for example, hitting a pole, tree, or an accident you caused), your NCD will drop immediately. The system is designed to reward drivers who don’t make claims — not just those who avoid accidents.
How to Avoid Losing Your NCD
For minor damage, it’s sometimes better to pay out of pocket rather than file a claim. It costs a little, but preserves your discount for next year. Also, always check who is at fault before submitting a claim.
For a quick check, you can compare insurance plans on Bjak. The platform shows the best policies with NCD calculated automatically, so you know exactly how much discount you enjoy before paying.
Conclusion
In short, your NCD is affected if you make a claim under your own policy, but remains safe when claims are made against another party. Be smart before claiming — sometimes it’s better to preserve your discount for the long term.
Read More:
The Role of JPJ & Bank Negara In Regulating Car Insurance Policies
