A Guide To No Claim Discount (NCD)

Your NCD rate plays an important role in determining your car insurance premium.

Find out more about the NCD in this article.

Car Insurance

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No Claim Discount or more commonly known as NCD is not foreign to car owners. NCD is a form of discount that insurers offer if you do not make any claims throughout the coverage period. When you do not make any claim on your insurance policy, your NCD rate will increase, thereby lowering your car insurance premium.

In this post, we look into the NCD rates for different vehicles, situations where you can still keep your NCD after making insurance claims and a few other important things you should know about the NCD.

NCD rates vary for different vehicles

The NCD rates for private cars, private motorcycles and commercial vehicles are different. For your reference, provided below are the NCD rates for the vehicles:

NCD rates for private cars

NCD rates for private cars

NCD rates for motorcycles

NCD rates for commercial vehicles

NCD rates for commercial vehicles

NCD rates for commercial vehicles

Insurance claims that will not affect your NCD

For your information, you will get your NCD automatically during your insurance policy renewal. However, be aware that your NCD rate can return to 0% if any insurance claim is made on your policy. Nevertheless, you can continue to enjoy your NCD even after you make any of the following claims:

No-fault damage claim

No fault damage claim

You can make a no-fault damage claim if you run into a car accident caused by a third party. For you to be able to make this claim, the authorities must certify that the accident is not due to your fault.

In the event that you make a no-fault damage claim, there will be no effect on your NCD so you can keep it. Further, your insurance company will also help you claim from the insurance company of the third party who causes the accident.

Windscreen claim (with additional cover)

Windscreen claim (with additional cover)

Did you purchase a windscreen cover in addition to your car insurance? If you did, you are fortunate as you can still keep your NCD even after you make an insurance claim for your windscreen replacement or repair.

However, if you did not purchase this additional cover, making an insurance claim for your windscreen will certainly affect your NCD.

Facts about the NCD you should know

At this point, you may already be aware of what NCD is and how it works. But you may not be aware of other aspects pertaining to the NCD. Therefore, we share below some of the facts about the NCD that you should know:

Your NCD belongs to you, not your car – What this means is you can transfer your NCD to another vehicle of the same type (car-car; motorcycle-motorcycle). However, you cannot transfer your NCD to another person as it is exclusive to you.

Your NCD applies to all insurance companies – If you choose to change to another insurer, for example, from AIA to Allianz, your NCD will still apply.

Keep your NCD – Avoid making insurance claims especially if the cost is small as they will affect your NCD.

You enjoy your NCD during insurance renewal – As shown above, first-year car users will not be able to enjoy the NCD. However, they can begin to enjoy the NCD during their insurance renewal provided they do not make any insurance claims.

How to check your NCD

You can check your NCD rate easily online through MyCarInfo.

To check your NCD, simply visit MyCarInfo and click on the NCD Online Enquiry. Next, key in your vehicle plate number and identity card number. After you are done, click on the button ‘GET MY NCD RECORD. If your vehicle is registered under a company, key in the business registration number.

After keying in the required information, you will be able to view your NCD and other information as follows:

  1. Next NCD Percentage
  2. Next NCD Effective Date
  3. Current NCD Percentage
  4. Current NCD Effective Date

Easy, right? This free service can be used to check the NCD for all vehicles including motorcycles and rental vehicles.

Check vehicles NCD online

Keep your NCD for more savings

As our article has shown, your NCD will help you enjoy cheaper insurance premiums. Hence, ensure that you drive safely and avoid being involved in an accident so you can keep your NCD.

For more savings, we suggest that you renew your car insurance online at Bjak. Simply visit Bjak.my and choose from 15 car insurance companies that offer a range of benefits at attractive prices.