No Claim Discount (NCD) or No Claim Bonus (NCB) is a form of discount given to vehicle owners when they renew car insurance policies. But there comes a time when your old car is no longer usable and you simply have to let it go and get a new one. When this happens, one of the crucial things you should do is transfer your NCD from the old vehicle to the new one, so you can continue enjoying the hard-earned discount with the new vehicle.
But let’s be honest. Not many people who own cars know how to transfer their NCDs the right way. Hence, we’ve prepared this quick guide to help you navigate the process. Here’s how you transfer your NCD.
Step 1: Prepare documents
Transferring your NCD to a new vehicle requires the removal of the old’s through a process called NCD withdrawal. To do this, you need your identification card and bank statement (required by some insurers). Prepare some cash in advance if you need to pay off the remaining balance of your premium insurance (if any).
Step 2: Fill up the form
Next, visit your old vehicle’s insurer’s nearest branch and request for a form to transfer the NCD. Fill out the form with accurate details and attach the supporting documents mentioned above. Once your application is approved, a copy of the NCD transfer form will be given to you.
Note: If your old vehicle’s insurance has already expired you will need the Certificate Number of your previous cover note to transfer the NCD. Keep the insurance cover note with the highest NCD rate to get you the biggest discounts.
Step 3: Renew insurance
Once your NCD transfer is approved, renew car insurance for your new vehicle and attach all the supporting documents mentioned above including the NCD approval form. After renewing your insurance, check for the updated NCD for your new vehicle online through portals like MyCarInfo or Fincrew. Remember to cross-check information for accuracy.
Things to remember
As you can see, transferring NCD is not too complicated after all. However, you need to take note of these two conditions to be eligible for the transfer:
Condition 1: Both vehicles must be of the same type
Yes, in order to transfer your NCD, you have to make sure that both vehicles old and new are of the same type. This means you can only transfer the NCD from a private car to another private car and a motorcycle to another motorcycle. Cross-transferring NCD, for instance, from a private car to a motorcycle is not permissible as the NCD rates for different vehicle types are not the same.
Condition 2: Both vehicles share the same owner
Before transferring NCD, you must ensure that both old and new vehicles are registered under your name and ID, as NCD transfer can only be done between vehicles of the same owner. This is simply because NCD is tied to the vehicle owner’s ID. So, to transfer your NCD to another vehicle, you must make sure that the other vehicle belongs to you. This applies to cases of acquiring a friend or family member’s vehicle where an ownership transfer is required.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Visit Bjak today to get your free insurance quote!
Read more:
