Getting to Know NCD (No Claim Discount)

Always wonder what does NCD stand for? Let us answer some of your questions!

1. What is NCD?
   NCD stands for No Claim Discount, which is a discount on your motor insurance premium if you did not make a claim in the previous year of your policy.
   
   In other words, being a good and cautious driver is like being that straight-A+ student in class. However, instead of being rewarded with good grades and academic trophies, you’re being rewarded with premium discount. Now, isn’t that great?
2. Who decides on the NCD rates?
   The NCD rate is set by Persatuan Am Insurans Malaysia (PIAM). The rates for private cars & motorcycles are listed below:
   

   Claim Free Year of Insurance	NCD Entitlement for Private Cars
   After 1 continuous claim free year	25%
   After 2 continuous claim free years	30%
   After 3 continuous claim free years	38 1/3%
   After 4 continuous claim free years	45%
   After 5 continuous claim free years and beyond	55%

   Claim Free Year of Insurance	NCD Entitlement for Motorcycles
   After 1 continuous claim free year	15%
   After 2 continuous claim free years	20%
   After 3 continuous claim free years	25%

3. How do I check my current NCD rate?
   Simple! You can check your current NCD rate via the Central NCD Database (“CND”) at www.mycarinfo.com.my/ncdcheck/online or just reach out to us.
4. How does NCD benefit me?
   NCD helps lower your motor insurance premium so you get to save more. You will earn NCD if you did not make a claim during the previous policy year. Here are some scenarios to help you understand better:
   
   Scenario 1:
   Ali is a cautious driver and he has not made any claims in all his insurance policy years.
   

   Policy Year	NCD applied at the start of Policy	Premium Amount* (before NCD is applied)			Premium Amount (after NCD is applied)	NCD Savings
   2017	0%	RM1,000			RM1,000	N/A
   2018	25%	RM1,000			RM750.00	RM250.00
   2019	30%	RM1,000			RM700.00	RM300.00
   2020	38 1/3%	RM1,000			RM616.70	RM383.30
   2021	45%	RM1,000			RM550.00	RM450.00
   2022	55%	RM1,000			RM450.00	RM550.00
   2023	55%	RM1,000			RM450.00	RM550.00

   
   Scenario 2:
   Ali had an unfortunate accident and submitted a claim in 2019. Due to the claim submitted, Ali’s NCD of 30% resets to 0% upon his next policy renewal.
   

   Policy Year	NCD applied at the start of Policy	Premium Amount* (before NCD is applied)			Premium Amount (after NCD is applied)	NCD Savings
   2017	0%	RM1,000			RM1,000	N/A
   2018	25%	RM1,000			RM750.00	RM250.00
   2019	30%	RM1,000			RM700.00	RM300.00
   2020	0%	RM1,000			RM1000.00	N/A
   2021	25%	RM1,000			RM750.00	RM250.00
   2022	30%	RM1,000			RM700.00	RM300.00
   2023	38 1/3%	RM1,000			RM616.70	RM383.30

   *For illustration purpose, Premium Amount (before NCD is applied) is assumed to remain the same at RM 1,000 annually.
5. Can I still retain my NCD after I made a claim?
   There are two scenarios which will allow you to retain your NCD:
   (a) The accident is clearly not your fault - this must be proven via a police report.
   (b) If you have certain add-ons (e.g. windscreen add-on) in your policy, you can make a claim under these add-ons without affecting your NCD.
6. Can I transfer my NCD?
   You earn NCD for each vehicle you own. So, your NCD is unique to you and it is not transferable to another person if you sell your vehicle. However, your NCD is transferable between vehicles owned by you.

Now that your questions on NCD are answered, remember: Keep practicing safe driving behaviour and reap the rewards of NCD!
#DriveSafeToSave