Introduction
NCD Lost Due to Renewal can happen when drivers miss renewal deadlines or misunderstand transfer rules. The No Claim Discount (NCD) rewards drivers who make no insurance claims, but failing to act on time or misinterpreting the process can cause it to drop. This article explains the causes and shows how to protect your NCD effectively.
Reasons NCD is Lost
- Renewal gap: If you let your insurance expire without renewing promptly, your NCD usually drops one level.
- Misunderstanding NCD transfer: Owners often assume NCD can be transferred, but it remains linked to the NRIC and vehicle type.
- No endorsement or cancellation: You cannot transfer NCD from an active policy without first getting a withdrawal endorsement or cancelling the policy.
How to Preserve NCD During Renewal
- Renew insurance on time to avoid gaps.
- Use BJAK to check NCD and insurance options.
- If changing vehicles, perform an NCD withdrawal endorsement with a top-up payment if required.
- Keep records of your previous NCD for reference during renewal or transfer.
Tips to Avoid Losing NCD
- Never let your insurance expire without renewal.
- Understand NCD rules — you cannot freely transfer NCD between vehicles or owners.
- Use BJAK to verify your NCD before renewing.
- Contact your insurer if unsure about your NCD status.
Conclusion
NCD Lost Due to Renewal can be avoided by actively checking your NCD and renewing on time. Platforms like BJAK help vehicle owners verify their NCD, ensuring insurance renewal proceeds smoothly and NCD discounts stay protected.
Read More:
Takaful Ikhlas: Budget Choice for Takaful
