Introduction
The No Claim Discount (NCD) rewards drivers who make no insurance claims. However, many car owners remain confused because NCD cannot be freely transferred. This article clarifies the official rules, common misconceptions, and steps to ensure NCD is preserved during insurance renewal.
Common Misunderstandings
- NCD can be transferred to another person: Incorrect — NCD is tied to the NRIC and vehicle type.
- NCD can be transferred without endorsement: Incorrect — a withdrawal endorsement or policy cancellation is required.
- NCD can be combined: Incorrect — NCD can only be transferred to a new vehicle under the same NRIC.
How to Properly Manage NCD
- Understand NCD rules — transfers are only allowed within the same NRIC and vehicle type.
- Perform an NCD withdrawal endorsement if changing vehicles.
- Use BJAK to check your NCD and policy status before renewal.
- Keep records of previous NCD to simplify renewals or transfers.
Tips to Avoid NCD Misunderstandings
- Do not attempt to transfer NCD to another person.
- Renew on time to avoid losing one NCD level.
- Use BJAK to check NCD status and insurance options.
- Contact your insurer if you have any doubts about your NCD.
Conclusion
Many car owners remain confused because NCD cannot be freely transferred. By understanding the official rules, using BJAK to monitor NCD, and completing endorsements if necessary, NCD can be preserved and insurance renewal can proceed smoothly.
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