Introduction
Every time you renew your insurance, you actually have a chance to save up to 55% through the No Claim Discount (NCD). But many drivers aren’t sure how this discount is calculated or whether it can be transferred to a new vehicle. In this guide, we’ll break down in simple terms how NCD is calculated for car insurance, and how online insurance calculators like BJAK.my help you check your actual discount rate before you renew.
1. What Is NCD?
NCD (No Claim Discount) is a reward given to drivers who don’t make any insurance claims during their policy period.
It’s basically a discount for being a careful driver and staying accident-free.
Each year without a claim increases your discount until you reach the maximum 55% for comprehensive coverage.
Example:
- 1st year without claim → 25%
- 2nd year → 30%
- 3rd year → 38.33%
- 4th year → 45%
- 5th year & beyond → 55%
2. How to Calculate NCD for Car Insurance
To find out your exact discount amount, use an online insurance calculator like BJAK.my.
Here’s how:
- Enter your car plate number and IC number.
- The system will check your NCD record through the PIAM database (General Insurance Association of Malaysia).
- Your NCD percentage will appear instantly before payment.
Example:
If your original insurance premium is RM2,000 and your NCD is 45%, you’ll only need to pay RM1,100 after the discount.
3. Can You Transfer NCD to a New Car?
Yes — as long as the new car is registered under the same owner’s name.
Just inform your insurer when purchasing the new policy.
However, NCD cannot be transferred to another person, even family members.
Example:
If you sell your old car and get a new one under your name, your NCD follows you automatically. But once the car ownership changes to someone else — even your spouse or kid — the discount won’t move along with it.
4. When Does NCD Reset or Disappear?
Your NCD will reset if you make a claim for accident damage or total loss.
However, minor claims — like windshield replacement or natural disaster damage — may not affect your NCD.
This depends on your insurer’s policy, so always check the terms before making a claim to avoid losing years of discount.
5. Why Check Your NCD with BJAK
BJAK not only shows your NCD rate but also helps you:
- Compare premiums from over 10 top insurance companies in Malaysia
- Check your latest NCD before making payment
- Renew insurance and roadtax together — with no hidden charges
This way, you can make sure your NCD discount is fully applied and enjoy the best annual savings.
Conclusion
Knowing how NCD is calculated for car insurance helps ensure you don’t overpay during renewal. The longer you drive without a claim, the higher your discount grows.Use platforms like BJAK to check your current NCD rate, compare premiums, and renew everything in one place. Save time, save money — and keep your protection active.
Read More:
Renew Roadtax Without Insurance, Is It Possible?
