Buying motor insurance and making claims (or not)
The No Claims Discount (NCD)
Insurance providers give you a discount on your premiums if you go through a period of time without making any claims on your policy. For example, you may be entitled to a discount on your premiums if you have not been in any accidents or have never made an insurance claim. For personally-owned vehicles, the scale of NCD ranges from 25% to 55% as provided in your insurance policy. Make sure to ask for your NCD!
NCD For Private Car / Commercial Vehicle
Before making a claim, check if it’s worth it to lose your NCD.
For example, if your annual premium is RM1,000, and your NCD is 55%, then your NCD discount is worth RM550. If you make a claim of RM400, you gain RM400 but you’ll have to pay an extra RM550 in premiums the following year. In this case, you’re better off not making the claim.
|Not making a claim||Making a claim|
|Total out of pocket costs||RM450||RM600|