When it comes to car insurance, one of the most valuable benefits a policyholder can earn is the No Claim Bonus (NCB).
NCB is a discount given for vehicle insurance premiums by insurance companies to policyholders who have not made any claims during the policy term. In the long run, it makes car insurance cheaper by lowering the premium cost when the policy is renewed.
For teenage car insurance, premiums are often much higher compared to older, more experienced drivers. Insurers consider young drivers a higher risk, which makes discounts like the No Claim Bonus (NCB) especially important.
The NCB Rate For Vehicles in Malaysia
The NCB rate in Malaysia is established by Persatuan Am Insurans Malaysia (PIAM), and all insurance providers are required to comply with these fixed rates. The rates for different types of vehicles are illustrated in the table below:
| Claim Period | Private Cars (%) | Motorcycles (%) | Commercial Vehicles (%) |
| 1st year | 0 | 0 | 0 |
| 2nd year | 25 | 15 | 15 |
| 3rd year | 30 | 20 | 20 |
| 4th year | 38.33 | 25 | 25 |
| 5th year | 45 | 25 | 25 |
| 6th year onwards | 55 | 25 | 25 |
A Step-by-Step Guide to Check Your Car Insurance NCB
Understanding how to check for NCB is essential. Here is a complete guide on how to check NCB in car insurance if you’re curious about how much bonus you have earned. Read on for further information.
1) Look Over Your Existing Policy Document
Most insurance companies make it clear what the NCB percentage is in the policy schedule or renewal notice. Just look for words like “No Claim Bonus” or “NCB Discount” in the document.
2) Check Through The Insurer’s Website or Mobile App
Your current NCB status can be viewed by logging in with your information and navigating to the policy information or renewal section. Moreover, certain insurance companies allow you to download an NCB certificate online.
3) Contact Your Insurance Company
You may contact your insurance company directly. A quick call to customer service or a visit to their nearest branch office will help you get the details. You can get an official NCB certificate that shows your discount percentage by giving them your policy number or vehicle registration number.
4) Check Through Your Insurance Agent
If you bought your car insurance through an agent, they can also help you check your NCB. Agents can quickly check the bonus and provide you with the necessary information because they have direct access to the insurer’s system.
Important Things to Keep In Mind About NCB
- Please note that NCB only applies to the own-damage part of the payment. It does not apply to the third-party liability cover.
- If you file a claim, your NCB could go down to zero or start over at a smaller percentage.
- If you sell your car and buy a new one, you can still get your NCB, as long as you claim it correctly.
- You might lose your NCB if you forget to renew your insurance during the grace period.
Checking your NCB in car insurance is a simple but essential step to make sure you don’t pay more when you renew. You can save a lot of money on premiums every year by keeping track of your bonus. You can do this by checking it online, looking at paperwork, or asking for an NCB certificate. Always check your NCB before switching or renewing your insurance to get the most out of your benefits.
Extra Tips for Families
When families are planning the money aspect of owning a car, it’s helpful to plan both their insurance and their financing at the same time. A car loan eligibility calculator Malaysia may assist parents and young drivers figure out how much they will have to pay each month. Checking NCB will help them save money on premiums in the long run. Both of these techniques make it easier and cheaper to keep up with adolescent auto insurance.