Introduction
Many drivers know that NCD helps them save big when renewing insurance, but not everyone understands how it actually works.No Claim Discount (NCD) is a reward from insurance companies to vehicle owners who haven’t made any claims during their policy period.
The longer you go claim-free, the higher your maximum NCD insurance discount of up to 55% for cars!
1. What Is NCD (No Claim Discount)?
NCD is designed to encourage safe driving and reduce accident rates on the road.
Each year without a claim increases your discount rate — it’s a real reward for cautious drivers.
2. NCD Rates by Year
Here are the official NCD rates for private cars, motorcycles, and commercial vehicles in Malaysia:
| Claim-Free Year | Private Car | Motorcycle | Commercial Vehicle |
| Year 1 | 25% | 15% | 10% |
| Year 2 | 30% | 20% | 15% |
| Year 3 | 38.33% | 25% | 20% |
| Year 4 | 45% | 25% | 25% |
| Year 5 & above | 55% (max) | 25% (max) | 25% (max) |
If your insurance premium is RM1,000 and you make no claims for one year, you’ll pay around RM750 the next year after a 25% discount.
3. When Can NCD Be Lost or Kept?
NCD isn’t automatically permanent — it can reset or remain depending on your claim type:
- Reset to 0%: If you make an Own Damage claim (accident your fault), your NCD will be completely lost.
- Remains Active: If it’s a Third Party claim (not your fault) and confirmed as such, your NCD stays.
- Can Be Transferred: When you buy a new car under the same name, your NCD can be transferred.
Pro Tip:
Make sure the vehicle owner’s details and plate number match the previous policy to avoid losing your NCD record.
4. How to Check NCD Through BJAK
Want to know your current NCD rate? It’s easy:
- Visit BJAK.my
- Enter your vehicle plate number & IC to get a quote
- The system will instantly show your current NCD percentage
- If it doesn’t appear, contact BJAK’s customer service via WhatsApp, phone, or email for assistance
BJAK Tip:
Use the same owner details as your previous policy so the system can accurately detect your active NCD.
5. Benefits of Maintaining Maximum NCD
- Save up to 55% (car) or 25% (motorcycle/commercial) every year
- Pay lower premiums without reducing coverage
- Maintain a clean driving record that helps with future claims or policy transfers
- A good insurance record can even make your car more appealing to buyers
Conclusion
NCD is the easiest way to enjoy huge yearly savings — as long as you avoid making small claims and check your status early.
Before renewing your insurance, check your NCD rate at BJAK.my to ensure your maximum discount is accurately applied.With consistency and careful driving, you can enjoy full protection without overpaying.
Read More:
What Documents Are Required to Renew Roadtax
