Having a car may sound thrilling, but there are commitments that come along with it, including understanding all the important details.
In Malaysia, having a car comes at a price not only for monthly instalments and maintenance but also for annual insurance. Depending on the kind of car you drive and the insurance coverage you pick, it is easy to realise how the cost can quickly add up. Thankfully, your No-Claim Discount (NCD) might allow you to save on the cost of your insurance coverage.
If you’re unsure about what NCD and how it might get affected by your windscreen replacement, here is some information that could help you understand it better.
No Claims Discount (NCD)
No Claims Discount, also known as NCD, is an insurance discount granted to people who have not filed any claims in a year. In addition, it also refers to the absence of any third-party claims brought against your coverage.
Persatuan Insurans Am Malaysia (PIAM) Motor Tariff sets and regulates the NCD rate. When you first purchase your insurance coverage, NCD is not an option. However, you have the option of transferring the NCD of any current car that is registered in your name to the new vehicle.
Those who have maintained a flawless record for five years in a row are eligible for the maximum rate of the NCD, which is 55%. Without a doubt, NCD is the foundation of insurance because it enables you to receive reductions of up to 55% on the cost of insurance.
NCD Rates for different vehicles
The NCD rates for motorbikes, private cars and commercial vehicles are different. The limit on the rate for private car owners is set at 55%, while the maximum NCD rate for motorcycles and commercial vehicles is capped at 25%. This incentive is given to car owners to drive safely because the NCD rate will increase yearly.
The NCD rate in Malaysia is shown in the table below, and the amount varies based on the kind of vehicle you’re driving.
How to check NCD
In addition to consulting your prior insurance policy, you may quickly check the NCD rate for your car online.
- Visit MyCarInfo and select “NCD Online Enquiry” to check your NCD.
- Then, enter the licence plate and ID card numbers for your car.
- Once you’re done, select “GET MY NCD RECORD.”
- Enter the business registration number if your vehicle is registered under a company.
After entering the necessary information, you will be able to review your NCD and other information as shown below:
- Next NCD Percentage
- Next NCD Effective Date
- Current NCD Percentage
- Current NCD Effective Date
What you need to know about NCD
You may already understand what NCD is and how it works at this point. However, you may be unaware of additional features of the NCD. So, here are some facts that you should know:
- Your NCD belongs to you, not your car: This implies that you can transfer your NCD to a different car of the same type. But, you cannot transfer your NCD to another individual because it is personal to you.
- Your NCD applies to all insurance companies: Your NCD will still be effective if you switch to a different insurer.
- You can maintain your NCD: To maintain your NCD, it is best to avoid filing insurance claims, especially if the expense is minimal. This is because it will affect your NCD.
Will replacing my cracked windscreen impact my NCD?
So here comes the big question on whether claiming from insurance to replace your windscreen could affect your NCD. The situation of how you get the windscreen replacement will determine the answer:
- If you currently have additional windscreen insurance: The insurer will compensate for replacing the windscreen, but this won’t impact your NCD because the windscreen insurance add-on previously covered the windscreen.
- If you don’t have additional windscreen insurance: You can ask your insurer to cover the cost of the windshield, but this would impact your NCD because the insurer will treat this as a claim against your primary car insurance policy.
- If you use your personal funds to replace a windscreen: This will not have any impact on your NCD.
There Are Numerous Benefits In Being A Safe Driver
To maintain your NCD, make sure to drive responsibly and avoid collisions. In doing so, you can enjoy a premium car insurance policy at a lower price. Additionally, the impact on your NCD for a windscreen replacement will depend solely on the situation and how the damage happened.
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