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NCD Malaysia: No Claim Discount Rates, Rules and How to Check
A private car’s No Claim Discount (NCD) starts at 0% and rises to 55% after five claim-free years. Bank Negara Malaysia keeps the scale the same at every insurer and takaful operator, and a claim on your policy takes it back to 0% at the next renewal.
What is the NCD scale in Malaysia?
| Claim-free years | Private car | Motorcycle and commercial vehicle |
|---|---|---|
| First year (no claim-free year yet) | 0% | 0% |
| After 1 claim-free year | 25% | 15% |
| After 2 claim-free years | 30% | 20% |
| After 3 claim-free years | 38⅓% | 25% |
| After 4 claim-free years | 45% | 25% |
| After 5 or more claim-free years | 55% | 25% |
Source: Bank Negara Malaysia policy document on motor tariff liberalisation (June 2016), which keeps the NCD scale standard across all insurers; Allianz and Takaful Malaysia 2026 policy wordings. Insurers work out 38⅓% as 38.33% · Checked 3 Oct 2026
How NCD works
NCD comes off the basic premium, after any loading. Add-on covers, the 8% service tax and the RM10 stamp duty are added after the discount, so they are not reduced by it.
The scale applies to comprehensive, third party, fire and theft, and third party only policies, and takaful certificates use the same scale.
Any claim on your policy, including a claim another driver makes against it, takes your NCD to 0% at the next renewal. It is kept when you are not at fault, the other vehicle is identified, is not a taxi, bus or hire car, is insured in Malaysia, and nobody is injured.
If another driver is at fault, you can make an Own Damage Knock-for-Knock claim on your own policy. Bank Negara Malaysia requires insurers to offer it and to tell you that it does not affect your NCD.
A windscreen claimed under a windscreen add-on keeps your NCD. An NCD relief add-on pays back the NCD you would lose on this year’s policy, but your NCD still goes to 0% at the next renewal.
| Basic premium | RM2,975.26 |
|---|---|
| NCD 55% | minus RM1,636.39 |
| Add-on covers (windscreen, cashback) | RM75.00 |
| Service tax 8% | RM113.11 |
| Stamp duty | RM10.00 |
| Total payable | RM1,536.98 |
Source: Bank Negara Malaysia product disclosure template (Dec 2024) and claims settlement practices (July 2024); Berjaya Sompo, Allianz and Etiqa policy wordings and disclosure sheets · Checked 3 Oct 2026
How do I check my NCD?
Use the NCD Enquiry on MyCarInfo, run by Insurance Services Malaysia (ISM) from the industry’s central NCD database. You need the car’s registration number and the owner’s IC number.
An NCD that your insurer has withdrawn or cancelled does not show there, so ask your insurer or takaful operator for it. We do not run an NCD lookup ourselves: the data belongs to ISM.
Source: ISM MyCarInfo NCD Enquiry · Checked 3 Oct 2026
Moving your NCD to another car or insurer
NCD moves with you when you change insurer or takaful operator, and the new company checks it on the central database.
For a new car, ask your insurer to withdraw the NCD from the old car’s policy. It gives you an NCD withdrawal letter for the new policy. The new car must be registered in the same name and be the same class of vehicle. If you keep insuring the old car, its premium goes up for the rest of its term.
NCD does not pass to the person who buys your car, or to a family member. A first-time car owner starts at 0%.
Source: Bank Negara Malaysia FAQ on motor liberalisation (April 2017); PIAM, 20 July 2026; MSIG and Liberty policy wordings · Checked 3 Oct 2026
Questions about NCD
What is the maximum NCD in Malaysia?
For a private car, 55%, after five or more claim-free years. For motorcycles and commercial vehicles the highest NCD is 25%.
Does NCD apply to third party insurance?
Yes. Insurers apply the same NCD scale to comprehensive, third party, fire and theft, and third party only policies.
Do I lose my NCD if another driver hits my car?
Not if you claim from the other driver’s insurer, or make an Own Damage Knock-for-Knock claim, which Bank Negara Malaysia requires insurers to offer and which does not affect your NCD.
Can my NCD go to my spouse or the buyer of my car?
No. NCD belongs to the named policyholder and can only move to another car registered in the same owner’s name, according to PIAM.
What happens to my NCD if I stop driving for a while?
Insurers’ policy wordings say unused NCD drops by one step on the scale for each year it is not used, so it does not last indefinitely.
Is Cermat Madani the same as NCD?
No. Cermat Madani is a separate premium benefit of up to 10% from participating insurers when you renew through the MyJPJ app, announced by the Ministry of Transport on 9 June 2026.
Last checked 3 Oct 2026 · Report a mistake