What is No Claim Discount (NCD) in Malaysia?

No Claim Discount also known as NCD, is an insurance discount given every vehicle owner in Malaysia. This is a special discount for vehicle owners for being a safe driver and not making any insurance claim in the past 12 months and also no third party making claim against your car insurance policy.

No Claim Discount is very important because it will have big impact on your Yearly Insurance Payment (Calculate your Car Insurance: West Malaysia or East Malaysia – Sabah, Sarawak and Labuan). This is because NCD can give you big discount on your yearly insurance payment up to 55%.

To put it simpler, if your car need to pay RM2000.00 per year in insurance fee, with NCD 55%, you only need to pay RM900.00, you save RM1100.00!

Example No Claim Discount (NCD) Malaysia Calculations

The discount rate is fixed by Persatuan Insurans Am Malaysia (PIAM) Motor Tariff. The discount rate is as table below:

Period of No Claims MadePrivate CarCommercial Vehicle
1st year0%0%
2nd year25%15%
3rd year30%20%
4th year38.33%25%
5th year45%25%
5 years or more55%25%
NCD rate

So, it is important to drive safe and be a good driver, you can achieve 55% NCD and get a huge discount every year. Bear in mind, once you involve in any accident that involve Insurance Claim, your NCD will reset to 0%. To get back to 55% NCD, you need to be a good driver for next 5 years to get to 55% NCD.