NCD in Malaysia, the No Claim Discount, is the discount off your car insurance premium for each year you go without making a claim. It climbs from 25% after one claim-free year to 55% after five, on a scale used across the industry for private cars. One claim made against your own policy drops it back to zero at the next renewal. It belongs to you, the owner, not to the car, which is why you can carry it from one car to the next.
The table
| Claim-free years | NCD |
|---|---|
| First year of cover | 0% |
| 1 year | 25% |
| 2 years | 30% |
| 3 years | 38⅓% |
| 4 years | 45% |
| 5 years or more | 55% |
At 55% you pay 45% of the premium the discount applies to, which is why five claim-free years are something to protect. You can check your current NCD on MyCarInfo (mycarinfo.com.my), the central NCD database, with your car's registration number and your ID number. Do that before every renewal; renewing car insurance in Malaysia explains what else to check.
What a claim does
A claim on your own damage cover
Your NCD goes to 0% at your next renewal, and you climb the table again from the bottom. On a small repair, compare the cost with what you'll lose in discount over the next few years before you claim.
An accident that wasn't your fault
If you're on a comprehensive policy and the police investigation finds the other driver at fault, you can claim under Own Damage Knock-for-Knock (ODKFK). Your insurer pays for your repair and your NCD stays where it is. There are exceptions. If the other vehicle was a hire-and-reward vehicle (a taxi, an e-hailing car, a bus), was uninsured, or someone was injured, the claim goes under own damage instead and your NCD is affected. A police report made within 24 hours is the starting point for any of this; what to do after a car accident covers the steps.
A cracked windscreen
If you added windscreen cover to your policy, a windscreen claim goes under that cover and your NCD isn't touched. Without the add-on, it's an own damage claim and the NCD goes to zero. If you spend a lot of time on the expressways, where stones get thrown up, that add-on earns its place. Windscreen claims explains the process.
Moving your NCD
Because it's tied to you, your NCD goes where you go:
- Selling your car and buying another: the NCD transfers to the new car's policy.
- Keeping the old car and buying a new one: ask the insurer to withdraw the NCD from the old car and apply it to the new one. The old car then starts again at 0%.
- Selling and not replacing the car straight away: the NCD doesn't wait forever. Berjaya Sompo, for one, says unused NCD is reversed after a year if no new vehicle takes it up. Ask your insurer for their rule.
You can hold NCD on more than one private car in your name. It can't be handed to another person: if you sell the car to your brother, your NCD stays with you and he starts with his own. If you're selling, how to sell your car in Malaysia puts the insurance step in order with the rest.
Other NCD questions
Does a rental car accident affect my NCD?
A rental car is insured by the rental company, not on your policy, and the damage is dealt with under the rental's own protection. At Grandpride that's Basic Cover (you pay up to the standard excess), a Loss Damage Waiver that lowers the excess, or Grandpride Protection+ with zero excess for damage and theft, glass and tyres included. Whether anything is ever reported against the renter's own record is CHECK: does an accident in a Grandpride rental car get reported to the renter's insurer or the central NCD database.
What happens to my NCD on a car subscription?
On a Grandpride car subscription, Grandpride owns and registers the car and insurance is part of the monthly price, so you don't buy your own policy for it. What that means for an NCD you've already built on another car, and if you can keep it alive while you subscribe, is CHECK: effect of a Grandpride subscription on the subscriber's existing NCD. Ask your insurer too.
