Introduction
NCD, or No Claim Discount, is a car owner’s right that can reduce insurance premiums. However, when changing ownership, many drivers worry about losing their NCD. This article focuses on NCD lost when changing car owner? How to maintain your discount, explaining official procedures and practical steps to ensure your premium discount remains valid and unaffected during policy renewal.
1. Understand PIAM Rules on NCD
- NCD linked under vehicle owner NRIC.
- Transferrable based on the same vehicle type.
- NCD is non transferrable among individuals.
- NCD not transferrable when policy still active after vehicle sold.
2. Steps to Maintain NCD When Changing Owner
- Old Policy: Ensure the original policy is either cancelled or transferred according to official procedures.
- Endorsement: Use endorsement to move NCD to a new car within the same class for the original owner.
- Complete Documentation: Keep payment receipts, policy copies, and endorsement confirmation.
- Check NCD Status: Verify via BJAK or digital platforms to ensure NCD is displayed correctly before renewing the new policy.
3. Risks of NCD Managed Improperly
- NCD loss → higher premiums on the new policy.
- Claims may be rejected if NCD records are inconsistent.
- Errors can occur during renewal or policy transfer.
- Tip: Never let the new buyer process the policy without endorsement, as this may cause the NCD to be lost.
Conclusion
Although changing car ownership can affect NCD, following official procedures such as endorsements, keeping complete documentation, and checking status via BJAK ensures your premium discount remains intact. Understanding NCD lost when changing car owner? Maintaining your discount helps you avoid extra costs and keeps your claims running smoothly in the future.
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