Introduction
Misunderstand the NCD transfer rules, and you’ll end up paying higher premiums. This article explains the five reasons Why NCD cannot be transferred and guides you through the practical steps to protect your discount.
1. Different Owner Name
NCD is only valid for the same owner as listed in the original policy.
- You cannot transfer your NCD to anyone else.
BJAK Tip: Ensure the car owner and the policyholder are the same if you want to maintain your NCD.
2. Different Vehicle Class
You can only apply your NCD to cars within the same class (e.g., passenger car to passenger car).
- Changing vehicle class → NCD becomes invalid.
3. Presence of Gap Coverage
If there is a period without coverage between the old and new policy, the NCD may drop one level or revert to 0%.
- A gap in coverage can make the transfer fail or cause you to lose the discount.
BJAK Tip: Renew on time or use BJAK reminders to avoid gap coverage.
4. NCD Transferred Without Endorsement
You can only transfer your NCD through an official endorsement or by cancelling the policy with a top-up payment.
- Without an endorsement, you cannot transfer your NCD even if you are the same owner.
5. Attempting Transfer From an Active Policy
You cannot transfer your NCD from an active policy without a formal NCD withdrawal endorsement.
- Active policy → no transfer is allowed without following official procedures.
Conclusion
Car owners in Malaysia must understand why NCD cannot be transferred. The five main reasons—different owner name, different vehicle class, gap in coverage, missing endorsement, and active policy—show why you cannot simply move your discount.. Follow BJAK’s guidelines to protect your NCD, avoid higher premiums, and ensure your policy remains valid.
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