How To Transfer No Claim Discount (NCD) To A New Car In Malaysia?

One of the best things about buying a new car is that you can utilize the No Claim Discount (NCD) that was earned from your old car.

NCD is basically a reward from insurance companies for driving safely and not making any claims, which allows you to pay less for your insurance. This discount may be transferred by registering your new car under the same name as your previous one.

Here is a step-by-step guide to help you understand how it works.

Step 1: Prepare the Necessary Documents

Before starting the NCD transfer process, ensure that you have all the necessary documentation ready:

1. Copy of your identification card (IC)
2. Bank account details
3. Old insurance policy documents 

💡Having all the necessary documentation ready will help your insurance application go through faster.

Step 2: Visit Your Insurance Company’s Branch

To initiate the transfer, please visit your insurance provider’s branch.

For example, if your old car was insured with ABC Insurance, then you are required to visit one of their branches to complete the NCB transfer.
Some insurance companies allow you to make requests online, but most still require you to visit in person to confirm.

Step 3: Fill Out The NCD Transfer Form

At the branch, you will need to:

1. Fill out the official NCD transfer form provided.
2. Submit it together with your documents.
3. You will receive a confirmation copy of the transfer after it has been approved.

💡 Keep this copy safe, as it will be required during future insurance renewals.

Step 4: Clear Any Outstanding Premiums

Before transferring your NCD, you may need to settle any balance on your old car insurance policy. The amount to be paid depends on the validity of the insurance policy. However, you may skip this step if your insurance has already expired.

Step 5: Renew Your New Car Insurance with NCD

When renewing or purchasing insurance for your new car, please make sure:

• Present your NCD transfer documents to the insurer.
• Make sure your new car’s NCD percentage matches your old one. 

💡Example: If your previously earned the maximum NCB rate (up to 55%), ensure it is reflected in your new policy.

Why Does NCB Transfer Matter?

Transferring the NCB from your old car to your new one helps:

• Save significantly on car insurance premiums.
• Maintain the discount rate you’ve earned over years of safe driving.
• Avoid paying higher premiums unnecessarily.

The process of transferring your old car’s NCD is a straightforward but necessary step. By preparing your documents, visiting your insurer, and ensuring all records are correctly updated, you can continue to enjoy the discounts you have earned over the years for driving safely.

Extra Key Knowledge

When preparing to transfer your No Claim Discount, it’s also important calculating the entire cost of owning your new car. A lot of Malaysians say that applying for a vehicle loan and transferring their NCD at the same time helps them appreciate the complete financial commitment better. When you compare online car insurance quotes in Malaysia, you can see right away how much money you can save on your premiums once your NCD is applied. This way, you can be sure to get the best deal for your new car. Click here for more information on how to check ncd in car insurance.