NCD Drop Even Without a Claim, Why?

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Introduction

Many Malaysian drivers are shocked to see their No Claim Discount (NCD) drop — even though they never filed a claim. In reality, your NCD can decrease for several reasons you might not notice, all tied to how insurance companies update their policy records.

Why Can Your NCD Drop?

Change of Car or Ownership
If you sell your old car and buy a new one without transferring your NCD, the system treats you as starting again from 0%. This is one of the most common mistakes.

Late Policy Renewal
If your policy expires for more than 12 months without renewal, your NCD will automatically reset.

Record or System Update Errors
Sometimes, insurance databases fail to retrieve old NCD records — especially when your previous policy was with another insurer.

Cancelled Claim Still Recorded
Even if you withdrew a claim after filing it, some systems may still record it as an active claim, reducing your NCD.

Change of Coverage Type
Switching from Comprehensive to Third Party coverage can affect your NCD eligibility in some cases.

What To Do If Your NCD Drops Without Reason

Step	Action
1	Check your NCD status via JPJ portal or the BJAK platform.
2	Prepare old policy copies and proof of no claims.
3	Contact your insurer to verify your NCD record.
4	Request a restoration letter to recover your original discount, if needed.

BJAK Tip: BJAK automatically verifies your NCD status when you renew your insurance online — saving you the manual hassle.

How To Prevent Losing Your NCD in Future

Always renew within 12 months after expiry.
Transfer your NCD when changing cars.
Keep copies of your past policies for reference.
Use a consistent platform like BJAK to prevent record mix-ups.

Conclusion

A sudden drop in NCD can be frustrating, but with regular checks and timely renewals, you can easily protect your discount. Use BJAK to monitor your NCD, renew on time, and maintain up to 55% savings on your car insurance premium.