Road Tax : NCD
Its a term we hear once a year when we are due to renew your vehicle roadtax. What is NCD?
NCD, short for No Claim Discount, is 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.
|Period of Insurance||Private Car||
|After 1st year||0%||0%|
|After 2nd year||25%||15%|
|After 3rd year||30%||20%|
|After 4th year||38.33%||25%|
|After 5th year||45%||25%|
|5th year onwards||55%||25%|
Will I have NCD if this is the first time I purchase a vehicle?
If you are buying a vehicle for the first time, you will not have NCD on your motor policy for the first year on the road. If you have at least one claims free year, then, upon renewal of your motor insurance policy, you will be rewarded with a 25% NCD off your renewal premium.
Can I transfer my NCD from one vehicle to another?
Yes you can. This typically happens when you have sold your old vehicle and want to transfer your NCD to the vehicle you are purchasing. If you do not transfer your NCD to another vehicle, your NCD entitlement level will drop one level each year. For example, if your NCD entitlement is 55% this year, it will drop to 45% next year, if it is not transferred to another vehicle. This will continue until the NCD level reaches 0%.
How will my NCD be forfeited?
If any claim is made or arises (with exception to windscreen and No-fault Own Damage claim) on your motor insurance policy during the period of cover, your NCD for that vehicle will be forfeited and reverts to 0%. You will have to begin to accumulate your discount in a new cycle.