How the NCD scale works
NCD is set by PIAM (General Insurance Association of Malaysia). For private cars, it starts at 0%, then grows to 25%, 30%, 38.33%, 45% and 55% after one, two, three, four and five or more claim-free years.
It applies to your basic premium, before add-ons, SST and stamp duty. It belongs to you as the vehicle owner, not the car.
When a claim does not touch your NCD
- Own Damage Knock-for-Knock (ODKFK) claims: where the police investigation outcome shows the other driver was at fault. This generally does not apply if the other vehicle is used for hire and reward (taxi, e-hailing, bus), is uninsured, or there is bodily injury.
- Windscreen claims under a windscreen add-on.
- Third-party claims paid by the other party's insurer.
Rules can differ by policy, so check yours.
Selling your car or changing cars
You can usually transfer your NCD to your next car in the same name, or withdraw it from a car you still own. How long unused NCD stays valid differs between insurers, so check before you let it sit.
How to check your NCD
Check your renewal notice or policy schedule, ask your agent or insurer, or check on MyCarInfo (mycarinfo.com.my) with your vehicle registration number and IC number.
Frequently asked questions
What is the maximum NCD in Malaysia?
55%, after five consecutive claim-free years, for private cars.
Does NCD apply to my whole premium?
It applies to the basic premium. Add-ons, SST and stamp duty are added after the discount.
Will one claim really reset my NCD to 0%?
An at-fault (own damage) claim usually resets it to 0% at your next renewal. Some not-at-fault claims (ODKFK with a police finding that the other driver was at fault) and windscreen add-on claims do not affect it.
How long does it take to get back to 55%?
Five claim-free years: 25%, 30%, 38.33%, 45%, then 55%.
Where can I check my current NCD?
Your renewal notice or policy schedule, your agent or insurer, or MyCarInfo with your registration number and IC.