Take a look on the outlines below to know what is covered under this article:
- What Is No-Claim Discount (NCD)?
- No-Claim Discount Rate (NCD) In Malaysia
- How Do I Check For My NCD?
- What Happens to My NCD If I Am Involved In A Car Accident?
- What Happens to My NCD If I File A Claim?
- Why Is NCD Important to Me?
- Frequently Asked Questions For NCD
What Is No-Claim Discount (NCD)?
No-Claim Discount which is commonly known as NCD, is a significant part of your car insurance. NCD is known as a reward for safe driving.
NCD is a type of discount given for:
a) not making any insurance claim for the preceding 12 months.
b) not having any insurance claim made by a third party against your car insurance policy.
No-Claim Discount plays a vital role in determining how much you have to pay for motor insurance as it offers a discount up to 55% of your base motor insurance or motor takaful coverage. The discount rate is determined and fixed by the General Insurance Association of Malaysia (also known as PIAM). Hence, the rate is the same across all insurers in Malaysia.
No-Claim Discount (NCD) Rate In Malaysia
|Period of No Claims||Private Car||Commercial Vehicle||Motorcycle|
|After Fifth Year||55%||25%||25%|
Based on the table above, significant savings can be obtained if you have not made any claims according to the respective period. By driving safely and meticulously each year without making claims against your car insurance policy, this would help to not only reduce the accident rates but also get rewarded with discounts for your car insurance. As the saying goes, killing two birds with one stone.
How Do I Check For My NCD?
We can help you with that! Use our free online motor comparison platform to check for your current NCD.
Click the link provided above. Fill in the necessary information and click “Get Started”.
You will then be directed to this page where you are able to check your No-Claim Discount.
Don’t just stop there! Compare the quotations for your car insurance in less than 1 minute with unbiased choices and pricing that suits your needs!
Fill in the further details and click “Proceed”
Once you have clicked “Proceed”, you will be led to the Add Ons section. You can then add on the additional extensions that suit your needs and renew your road tax too. Complete up the necessary steps and click “Proceed”.
An order summary will be shown where you are able to cross-check the amount payable, additional extensions that you have added and other important information. Once checked, click “Confirm Amount”.
You will then be directed to the payment section where you will be given some options to make payment. Once you have opted for the payment option, click “Proceed” to pay.
In essence, hope the guidelines mentioned above were clear and helpful for you to verify your NCD and also the steps on how to get yourself protected with PolicyStreet.
Wait no more, try it now to enjoy the exclusive and guaranteed deals from PolicyStreet!
What Happens to My NCD If I Am Involved In A Car Accident?
Remember to always remain calm and follow our guidelines here: What to do after a car accident?
No-Claim Discount is given to those who have not made any claims against his/her own car insurance policy.
- If you are found to be innocent and not at fault – Claim will be made against the third party who is at fault. Hence, this will not affect your NCD.
- If you are found to be at fault – Claim by the third party will be made against your insurance policy. Hence, this would affect your NCD.
- If the third party cannot be identified – Claim will be made against your policy but it would be filed as No Fault Own Damage Claim (NFOC). This means, your car insurer would bear the repair costs of your car without affecting your NCD since you are found to be innocent.
What Happens to My NCD If I File A Claim?
If a claim is made against your insurance policy, your current NCD would be forfeited and reverted back to 0%. This would impact the following year’s insurance renewal price as you will no longer be able to enjoy significant insurance savings. Hence, you would need to pay your premium in full and receive your NCD entitlement the year after.
To clarify, let’s say you were involved in an accident during your third year of insurance period in which you were required to file a claim. Currently, you have a 30% discount on your NCD entitlement. Since you have filed a claim, the next year when you renew your policy, you will not be entitled to the discount as your NCD rate has been reverted back to 0%.
Why Is NCD Important to Me?
NCD is a type of discount given for safe driving. If you have not utilised your NCD, here are the reasons why you should know:
Car insurance is mandatory in Malaysia and it can be pricey when renewing it along with your road tax. Making an effort to drive safely can reduce the cost of your car insurance by as much as 55%. Hence, it would come in handy to reduce your financial burden.
Besides helping to reduce the premium for your policy, NCD also encourages car owners to be wiser in the usage of insurance. Since there are possibilities you would lose your NCD, this can help car owners to think twice before making claims.
To clarify, if you were at fault in an accident where the total repair cost incurred is lower than the current NCD rate, it is wiser for you to not make a claim against your insurance policy to avoid affecting your NCD the following year. Instead, bear the repair costs on your own.
On the other hand, if you were found to be innocent, you can opt to make a third party insurance claim. This way, you will not lose your NCD entitlement as you are not filing against your own policy.
This would help you to be a wiser car owner by getting a good grasp on NCD.
Frequently Asked Questions For NCD
1. What is my No-Claim Discount (NCD) rate if I am a first time car owner?
For your information, all first time car owners would have an NCD rate of 0%. You will earn a higher NCD when you accumulate more experience in driving. Refer to No-Claim Discount Rate (NCD) in Malaysia (when clicked it would lead to that subtopic) section and take a look at the table to know how much NCD you can get according to the period of no claims made.
2. I have met in a car accident recently. It was a minor accident where I have decided to bear the repair costs. Will this affect my NCD?
If you have decided to repair your car with your own money, then this will not affect your NCD. Your NCD rate will only be affected if there is a claim made against your car insurance policy.
3. My father has 55% NCD. Can he transfer the NCD to me?
Definitely, no. The NCD is tied to the person. Thus, it cannot be transferred to another person.
4. I had a car accident recently but the third party had run away. However, I managed to get the vehicle registration number of the other vehicle. Will this accident affect my NCD rate?
You should make a police report about the accident. If the third party makes a police report too, the investigating officers will investigate the parties involved to determine the party-at-fault. Thus, the outcome of the investigation will decide whether your NCD is affected or remain untouched.
5. I’m a car enthusiast where I change my car every two years. Can I retain my NCD or do I have to keep accumulating my NCD from scratch?
As you are aware, NCD is tied to your name and not to your car. If you sell off your car and replace it with a new one, then your new car insurance will be applied with your entitled NCD that was accumulated when you had your previous car. Hence, NCD is transferable and can be accumulated.
6. Can I retain my NCD rate if I change my car insurer?
NCD can be transferred if you have decided to switch to another car insurance company. This is because NCD is not tied to a specific car insurer. As you are aware, NCD is regulated by the General Insurance Association of Malaysia and not set by the insurance company you are insured under.
Now you would have a clearer picture in mind of how NCD functions. We hope this article was insightful and helpful to you.
Also, you would now know another important fact compared to your fellow counterparts on the road!
Stay tuned on our next article!
Ensuring your every ride!