Thursday, May 7, 2009

Malaysia Motor Insurance - Know Your No Claim Discount (NCD)

Earlier this week, I have been asking for quotations for my car insurance renewal. I was a bit surprised how my googling on No Claim Discount (NDC) or No Claim Bonus (NCB) can save me about RM40. 

When I requested for the quotation from one of the local bank, the customer service asked for my car details. Then, she said the amount is about RM417. I was a bit curious as the amount was not as what I expected. I knew about NCD but not really in details. Due to my curiosity, I did some googling on NDC in Malaysia. 

According to Kurnia Insurance website, NCD is s a discount given to the policyholders upon renewal of their motor insurance if no claim is made or arises from the policy for a continuous coverage of 12 months. The discount given is based on a fixed rate provided by Persatuan Insurans Am Malaysia (PIAM) Motor Tariff. The NCD discount for private car in Malaysia as below:

Period of Insurance Discount
First year    0%
After the first year of insurance          25%
After the second year of insurance    30%
After the third year of insurance    38.33%
After the fourth year of insurance    45%
After five or more years of insurance    55%

I called the customer service again and told her that I checked through the NCD claims details and I should be entitle for 45% instead of 38.33%. she calculated again and this time the amount that she gave to me sound reasonable, RM372. I believe, if I didn't asked for the second calculation, then she'll just charge me RM417. Luckily I did some googling. And most importantly I feel good because I learned something new.

So, next time you are planning to renew your motor insurance, check your NCD entitlement. I found that Kurnia Insurance website provides a complete details for motor insurance coverage and even a calculator to calculate the motor insurance premium . Remember to calculate your own motor insurance premium before purchasing the insurance. Perhaps you can save some $$$ from here.


  1. this is really helpful! thanks for sharing

  2. hi there, sure.. my pleasure :) thanks for dropping by.