NCD in Malaysia: Common Myths & Facts About Car Insurance Discounts

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Introduction

NCD (No Claim Discount) is often misunderstood by many car owners. Some think NCD disappears every time they change cars, or that it can be shared with family members. In reality, there are several myths surrounding NCD that can confuse drivers when renewing insurance. This article clarifies the main myths versus facts so you can maximize your up to 55% discount wisely.

1. Myth: NCD Will Be Lost When Changing Cars

Fact: You can transfer your existing NCD to a new vehicle as long as it’s registered under the same name. Simply inform your insurer when purchasing the new policy.

2. Myth: NCD Can Be Shared with Family

Fact: NCD is individual-specific and cannot be shared, even with close family members.

3. Myth: Small Claims Don’t Affect NCD

Fact: Any insurance claim (except windscreen damage if add-on is included) will reset your NCD to 0%.

4. Myth: NCD Only Applies to Comprehensive Coverage

Fact: NCD also applies to 3rd Party, Fire & Theft policies, with the same discount rate depending on years without claim.

5. Myth: Each Insurer Determines Its Own NCD

Fact: NCD rates are standardized by the General Insurance Association of Malaysia (PIAM) — the same for all insurers.

Conclusion

NCD isn’t just a discount — it’s a reward for careful drivers who make no claims. By understanding the real facts, you can avoid losing benefits and maintain the highest discount each year. Before renewing, check your current NCD using platforms like BJAK, which automatically displays your discount based on your previous record.