At some point in our lives, we will have our own car. As much as it sounds exciting, it also comes with a certain responsibility, including knowing all the essential information.

For newbies, NCD, betterment and insurance may seem intimidating at first but you can easily understand them once you get the hang of it. If you want to attain thorough information about NCD, you’re in the right place.

Below, we have gathered all the necessary deets and answers to the most frequently asked questions.

See Also: Best Car Insurance in Malaysia (2022)

What is No Claim Discount (NCD)?

No claim discount or commonly known by its abbreviation NCD refers to an insurance discount that is given to individuals who didn’t make any claim for a year. It also includes the absence of third party claims made against your policy.

The rate of NCD is set and fixed by the Persatuan Insurans Am Malaysia (PIAM) Motor Tariff. NCD is not available during the first purchase of your  insurance policy. However, you can choose to transfer the NCD of any existing vehicle registered under your name to the new vehicle.

The maximum rate of the NCD is 55% which is eligible for those who managed to keep a clean free record for 5 consecutive years.

Needless to say, NCD is the core of insurance as it allows you to enjoy up to 55% discount on the insurance cost.

What’s the rate of NCD in Malaysia?


Private Car


Commercial Vehicle

1st year




2nd year




3rd year




4th year




5th year




After 5th years




The table above states the NCD rate in Malaysia, and the amount differs depending on the type of vehicle you’re using.

The rate for private cars and motorcycles is not the same as those who own private cars can enjoy the highest rate of NCD, which is capped at 55%. Whereas for motorcycles and commercial vehicles, the maximum NCD rate is only 25%. 

Based on the table, the rate of NCD will increase annually, and this reward is given to vehicle owners for being a safe driver.

As an example, if you receive a quotation with a basic premium of RM5,000 with 30% NCD, you can save up to RM1,500. If you manage to keep a claim-free record until the NCD increases to 55%, you can enjoy a whopping RM2,750 discount. Well, isn’t that great?

How To Check Your Car NCD?

Apart from referring to your previous insurance policy, you can easily check the rate of your car NCD online.

One way to do that is on our website! You just have to fill out your vehicle information. Do note that you can only check your NCD on if your insurance policy is expiring within 2 months. If your insurance policy is not expiring anytime soon, you can also head over to MyCarInfo.

However, make sure that the information matches with the registered details on the Malaysia Road Transport Department. Do note that some people opt for the special ID instead of their NRIC when they register their vehicle details.

Hence, if you’re a public servant, particularly an army or policeman, remember to recheck the actual ID that you used.

Does Windscreen Affect My Car Insurance NCD Rate? 

One of the most common questions that people frequently ask about NCD is whether or not claiming a broken windscreen affects the NCD. Well, it actually depends on several situations:

If you didn’t add on the windscreen insurance:

Although you can claim the replacement of the broken windscreen from your insurer, it can affect the NCD rate as it is considered as a claim. Hence, it is recommended that you include the windscreen insurance whenever you purchase one. 

If you already have a windscreen insurance: 

For those who have included this add on, you can simply claim for the windscreen replacement without having to worry about the deduction. The cost of such replacement has been covered by the add on

On another note, if you decide to pay for the cost incurred for the broken windscreen, it will not affect the rate of NCD.

How to Transfer the NCD to Another Vehicle? 

As we have mentioned earlier you can transfer the NCD of your existing vehicle to a newer one. Generally, it is recommended that you do this to enjoy a discount price of the premium cost.

As new vehicles tend to have a high premium due to the stipulated insured value, transferring the NCD is the ultimate way to save your money. Please note that you cannot transfer the NCD of your car to the motorcycle or vice versa. It can only be done for similar types of vehicles. 

Once the NCD has been transferred, the old vehicle will automatically have 0% NCD. However, the car insurance NCD rate will increase accordingly if no claim has been made within the 12 months.

If you want to transfer the NCD, you can visit the nearest insurer’s branch and request them to do so. However, you may need to pay a certain amount of the prorated price.

The Essential Things You Should Know About No Claim Discount (NCD)

What if I change to another insurer?

If you want to change to another insurer, you can still enjoy the no claim discount (NDC) that you have acquired throughout these years. So, whether you prefer Zurich, RHB, Takaful Malaysia, AmGeneral Insurance,  or etiqa, the NCD rate is applicable to all of the insurers.

Can someone else transfer their no claim discount (NCD) to me? 

The answer is no since the NCD belongs to the individual, so you cannot transfer it to another person. With that being said, you can only transfer the NCD to another vehicle as we have mentioned before. 

I’m a first time car owner, will I get 55% no claim discount (NCD)?

Unfortunately, the rate of no claim discount (NCD) for a first time car buyer is 0%. However, it will increase annually should you keep a claim-free record. The rate will gradually increase based on a renewal basis. 

If I get involved in an accident, will it affect my no claim discount (NCD)? 

Primarily it depends on the situation whether the other party is at fault or not. The insurer will make their discretion based on the police report. If you are found innocent, it will not affect the NCD rate.

In another situation, if you got into an accident and decided to pay for the cost incurred with your own money, it will also not affect the NCD since no claim has been made on your car insurance.

But, what if the other party runs away? Will it affect my car insurance NCD? 

If you managed to get the plate number, the first thing you need to do is make a police report of the incident. If the other party submits a report, the police will investigate the matter and identify the party who is at fault. Therefore, the result is entirely based on the investigation.

On the contrary, if you didn’t manage to catch the glimpse of the vehicle plate number, remember to make a police report. Then you can submit the No Fault Own Damage claim (NFOC) to your insurer. The repair cost will be covered without deducting your car insurance NCD rate.

*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to or contact us.

Recommended Reads

Follow Us For Latest Updates!