How ‘No Claim Discount’ (NCD) Works in Malaysia
No Claim Discount (NCD) is a reward system for vehicle owners in Malaysia who do not make any insurance claims within a policy year. This discount helps reduce the cost of your car insurance renewal, making it one of the most effective ways to save money on insurance kereta in insurance Malaysia.
How is NCD Calculated in Malaysia?
The percentage of NCD you receive depends on how many consecutive years you go without making a claim. Below is the NCD structure for private cars in Malaysia:
No Claims Period NCD Discount
|
No-Claim Period |
NCD Discount |
|---|---|
| 1st Year | 25% |
| 2nd Year | 30% |
| 3rd Year | 38.33% |
| 4th Year | 45% |
| 5th Year & Above | 55% |
If you drive safely and avoid accidents, you could enjoy up to 55% off your car insurance premiums. That’s a significant amount, especially with the fluctuating Malaysia petrol price.
What Happens to Your NCD When Selling a Car?
If you sell a used car or scrap a car, you can transfer your NCD to your next vehicle, as long as the new car is registered under your name. However, NCD cannot be transferred between individuals, even family members. This means if you plan to sell a car Malaysia and buy a new one, you should sell your car online via the Motorist Malaysia app and transfer your NCD to your next insurance policy.
When is NCD Reset to 0%?
Your NCD will be reset to 0% if:
You make a claim against your insurance (except for third-party liability claims where another driver is at fault).
Your policy lapses for more than a year.
You transfer the ownership of your car without transferring the NCD.
Why You Should Check Your NCD Before Selling Your Car
Before you jual kereta terpakai, check your NCD status to avoid unnecessary insurance costs. Using the Motorist Malaysia app, you can easily get a free car valuation, check your insurance Malaysia status, and even find out how to sell your car online hassle-free.
Download the Motorist App Today!
If you’re looking to sell a car Malaysia, buy insurance, or even monitor traffic camera Malaysia, the Motorist Malaysia app is your ultimate tool. It helps you:
Sell your car online for the best price
Get real-time Malaysia petrol price updates
Check NCD status and insurance renewal reminders
Stay updated with traffic camera Malaysia alerts
Download the Motorist App Now!
By understanding how No Claim Discount (NCD) works, you can save money on insurance kereta and make smarter decisions when you sell your car Malaysia!
Read More: How to Lower Your Car Insurance Premiums in Malaysia
I want to find the highest selling price for my car within 24 hours!
Download the Motorist App now. Designed by drivers for drivers, this all-in-one app lets you receive the latest traffic updates, gives you access to live traffic cameras, and helps you manage vehicle related matters.
