Introduction
Many Malaysian drivers know that NCD helps reduce their insurance premiums — but not everyone understands exactly how it works. The No Claim Discount (NCD) is a reward given by insurance companies to drivers who don’t make any claims during their policy period.
In this article, we’ll explain how NCD is calculated, the discount rates by year, and how to check your NCD status through BJAK, so you don’t miss out on yearly savings.
What Is NCD (No Claim Discount)?
The NCD is a discount given to vehicle owners who haven’t made any insurance claims throughout their coverage period.
It’s designed to encourage safe driving and reduce accident rates.
Each claim-free year increases your NCD percentage — the longer you go without claims, the bigger your discount on renewal premiums.
NCD Rates by Year
| Claim-Free Year | Private Car NCD Rate | Motorcycle NCD Rate |
| Year 1 | 25% | 15% |
| Year 2 | 30% | 20% |
| Year 3 | 38.33% | 25% |
| Year 4 | 45% | 25% |
| Year 5 & above | 55% (maximum) | 25% (maximum) |
If your first-year insurance premium is RM1,000 and you don’t make any claims, the next year you’ll only pay around RM750 (with a 25% NCD discount).
What Happens If You Make a Claim?
- If you file an Own Damage Claim (where you’re at fault), your NCD will reset to 0%.
- However, if you make a Third-Party Claim (when another driver is at fault), your NCD remains intact — as long as the claim is verified not to be your fault.
How to Check Your NCD via BJAK
- Visit BJAK.my.
- Enter your vehicle registration number to get an insurance quote.
- Your NCD rate will appear automatically in the generated quote.
- If it doesn’t appear but you believe you still have active NCD, contact BJAK customer service via WhatsApp, call, or email for verification.
- A BJAK representative will check your NCD status and update your quote to ensure the discount is correctly applied.
💬 BJAK Tip:
Always use the same number plate and owner name as your previous policy to ensure the system detects your NCD record accurately.
Conclusion
The NCD system offers drivers a great opportunity to save on insurance each year — as long as no claims are made. Check your NCD status via BJAK.my to ensure your discount is calculated correctly before renewing your policy. That way, you’ll enjoy legitimate coverage while keeping your insurance costs low year after year.
Read More:
Why Car Insurance Premiums Increase Every Year
Malaysia Roadtax Rates by Engine Capacity
Impact of Engine Swaps & Modifications on Car Insurance Policies
