Many car owners don’t realise they can save more than half of their insurance cost just by maintaining a clean driving record. That’s the purpose of NCD (No Claim Discount) — a reward for drivers who don’t make any insurance claims within a coverage period. However, many are still unsure on calculating NCD for insurance and when it applies.
1. What Is NCD Insurance Malaysia
NCD is a discount given to vehicle insurance policyholders who have not made any claims during their coverage period.
For example, if you renew your insurance every year without making a claim, your NCD percentage increases yearly — up to a maximum of 55%.
2. Latest NCD Rates in Malaysia
| Vehicle Type | 1st Year | 2nd Year | 3rd Year | 4th Year | 5th Year+ | Maximum |
| Private Car | 0% | 25% | 30% | 38.33% | 45% | 55% |
| Motorcycle | 0% | 15% | 20% | 25% | 30% | 25% |
| Commercial Vehicle | 0% | 15% | 20% | 25% | 30% | 55% |
3. How to Check Your NCD
You can check your NCD for free through:
- JPJ/MyJPJ: Check your NCD status via your vehicle record.
- Bjak: Just enter your plate number on Bjak’s website, and the system will automatically show your current NCD rate together with an estimated premium.
- MyEG or insurance agent: Can be checked manually, but usually slower.
4. How to Calculate NCD Insurance Malaysia
Simple example:
- Premium before discount = RM1,200
- Your NCD rate = 45%
Premium after discount = RM1,200 – (45% × RM1,200) = RM660
That means you save RM540 just for not making any claims that year!
5. Situations That Can Void Your NCD
Be careful — your NCD can be lost if you:
- Make an own damage claim
- Transfer the vehicle to a new owner
- Switch to another insurer with incorrect NCD records
- File a minor claim (like a self-inflicted scratch)
To maintain your NCD, avoid making small claims — pay out of pocket for repairs below RM500, since your NCD value is usually worth more in savings.
Conclusion
Calculating NCD insurance in Malaysia is the easiest way to enjoy major savings when renewing your insurance. Always check your rate before paying to make sure you don’t lose your discount eligibility.
If you want to check quickly and compare plans — you can use Bjak, which automatically calculates your NCD for you.
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