NCD (No Claim Discount) is a special discount that is tied to the registered vehicle plate number along with the owner’s NRIC, these discounts accumulate through continuous policy renewal without ever making an insurance claim. This article explains how NCD reduces your insurance premiums and tips to maintain it for maximum savings.
What is NCD?
NCD is a premium discount granted because no claims were made within a specified period.
- Usually calculated annually, ranging from 10% up to 55% depending on the insurer.
How NCD Reduces Insurance Premiums
- No claims → higher discount
Example: RM1,000 premium with 25% NCD → only pay RM750. - Lower annual increase
NCD helps keep insurance costs lower even as your car ages. - Combine with promotions & online platforms
Using Bjak to compare premiums + NCD can give maximum savings.
Tips to Maintain Your NCD
- Avoid small claims: Sometimes it’s cheaper to pay minor repairs yourself.
- No policy gaps: NCD will reduce for yearly gap renewals.
- Use e-insurance / cover notes: Helps track claims so NCD remains intact.
FAQs
1. Posisble to transfer NCD to another car?
Yes, if the vehicle is under the same NRIC.
2. What happens if I make a claim?
NCD will decrease according to the insurer’s policy. Example: 25% NCD may drop to 0–10%.
3. Do all insurers offer NCD?
Almost all comprehensive insurers provide NCD, but maximum rates vary.
Conclusion
Maintain your NCD for the best assurance that your insurance premium will stay at lower amount, with simple tasks of policy renewals and never making claims you’re able to max on savings of up to 55% when renewing your next policy. Use online platforms like Bjak to compare premiums and NCD easily for maximum savings.
Read More:
How Long Is a Car Insurance Cover Note Valid?
