Introduction
Many vehicle owners overlook crucial mistakes when having their car sold by neglecting their NCD that could have been transferred to another vehicle. Mistakes can result in losing your NCD or leaving the buyer without valid coverage. This article explains what you need to do with your insurance, how to handle NCD, and key tips to ensure a smooth transition for both parties.
1. Understand Your Current Policy
Before selling your car, check the status of your insurance policy.
- If the policy is still active, the old owner must either cancel the policy or transfer the NCD to a new vehicle.
- If the policy expires naturally, you can use the NCD on your next car, provided there is no coverage gap.
BJAK Tip: Always verify that your policy has no pending claims or issues before selling the vehicle. This ensures your NCD remains valid.
2. Cancelling the Policy or Using NCD
Once the sale is confirmed, the old owner cannot leave the insurance policy active for the buyer. The correct steps are:
- Cancel the existing policy to stop coverage on the sold car.
- Transfer the NCD to a new vehicle under the same NRIC (if buying another car immediately).
- Keep documentation of the cancellation and NCD transfer for future reference.
BJAK Tip: Never attempt to transfer your policy directly to the buyer—the NCD is tied to your NRIC and cannot legally be transferred to someone else.
3. Protecting Your NCD
Even after selling your car, your NCD can be preserved if handled correctly:
- Immediate Action: Cancel your policy before handing over the vehicle.
- Gap Coverage: Avoid letting your insurance lapse if you plan to buy a new car soon.
- Documentation: Keep records of the cancelled policy and NCD proof to ensure smooth application on your next vehicle.
BJAK Tip: Using BJAK’s platform to track NCD and policy cancellation ensures you don’t lose any entitlements.
4. Tips for the Buyer
While the policy cannot be transferred, you can help the buyer:
- Advise them to purchase a new insurance policy immediately after taking ownership.
- Provide the Vehicle Ownership Certificate (VOC) to support their application.
- Highlight that their NCD starts fresh—there is no way to inherit the old owner’s NCD.
BJAK Tip: Educating the buyer prevents gaps in coverage and potential legal issues if an accident occurs.
Conclusion
Having your car sold does not mean you lose control over your insurance or NCD, but it must be handled correctly. Cancel the active policy, transfer your NCD to your next vehicle, and keep proper documentation. For the buyer, advise purchasing new insurance immediately. By following these steps, both parties stay protected, and your NCD remains safe for future use.
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