How to Transfer Your NCD When You Buy a New Car in Malaysia

Published by: Chrisa Insurance Agency | Ara Damansara, Petaling Jaya

Best for: Anyone buying or selling a car in Klang Valley, PJ, or anywhere in Malaysia

Reading time: 5 minutes

You've finally bought a new car. Congratulations! But did you know that the No Claims Discount (NCD) you built up on your old car doesn't automatically follow you to your new one — and if you don't transfer it correctly, you lose thousands of ringgit worth of accumulated discount?

This is one of the most common and costly mistakes Malaysian car buyers make. This guide will walk you through exactly how NCD works, how to transfer it, and how to make sure you're not leaving money on the table.

What Is NCD and Why Does It Matter So Much?

NCD (No Claims Discount) is the reward your insurance company gives you for not making any own-damage claims during the year. Every claim-free year, your NCD grows:

•       After Year 1 with no claims: 25% discount

•       After Year 2: 30% discount

•       After Year 3: 38.33% discount

•       After Year 4: 45% discount

•       After Year 5 and beyond: 55% discount (maximum)

That 55% NCD is attached to you as the registered owner — not the car. So when you sell your old car and buy a new one, you have the right to transfer that 55% discount to your new vehicle's insurance policy. If you don't do it, you start from zero on your new car.

A 55% NCD on a car with a RM2,000 annual premium saves you RM1,100 per year. Over 3 years, that's RM3,300 you would be giving away unnecessarily.

Step-by-Step: How to Transfer Your NCD to a New Car

Step 1: Don't cancel your old car's insurance prematurely

When you sell your old car, you don't need to cancel the insurance immediately. The NCD sits with you as the policyholder, not the car. Keep a record of your policy number and expiry date.

Step 2: Get the NCD confirmation - Policy schedule or endorsement from your current insurer

Ask your insurance company or agent for a copy of your Policy Schedule. This document confirms your current NCD percentage and proves that it belongs to you. Your agent can easily retrieve this for you. 

Step 3: Apply the NCD when buying the new car's insurance

When you are purchasing insurance for your new car, request your insurer or agent to withdraw your NCD from your existing vehicle (if you are keeping the existing vehicle) or provide a policy cancellation endorsement (if the existing car has been sold). The insurer will then apply your accumulated NCD to the new vehicle's premium. This can be done at the point of purchase — the savings apply immediately.

Step 4: Get a refund on your premium (if the existing car has been sold) 

You may be entitled to a pro-rated refund on the remaining period of your premium. Don't forget to claim it!

Important Things to Know About NCD Transfer:

Can I transfer NCD if I still own both cars?

No — you cannot apply the same NCD to two vehicles at once. The NCD belongs to one policyholder-vehicle combination at a time. If you own two cars, each car's insurance policy builds its own NCD independently. However, you can swap your higher NCD to the car with the more expensive premium to maximize your savings.

How long do I have to transfer my NCD before it expires?

Your NCD is valid for up to 7 years after your last policy renewal or transfer. If your car has been sitting without insurance for more than 7 years, the NCD may be forfeited. Act within this window.

Can I transfer NCD to someone else — for example, to my spouse?

NCD is non-transferable between different individuals. It belongs specifically to the named policyholder. In Malaysia, your insurance policyholder name and IC number must match the car's registered owner name on the JPJ Sijil Pemilikan Kenderaan (VOC) or Vehicle Ownership Certificate. Because your NCD is strictly tied to your IC number, it cannot be transferred to family members like your parents or children. 

What happens to my NCD if I make a claim?

Any claim you make for own-damage (damage to your own vehicle) or a third-party claim where you are at fault will reset your NCD to 0% at your next renewal. Because a single claim completely wipes out your discount, many experienced drivers choose to pay for minor repairs out-of-pocket rather than filing a claim (own damage) —solely to protect their high NCD. 

How to Check Your Current NCD

You can check your current NCD at any time online through the MyCarInfo portal (powered by Insurance Services Malaysia, or ISM) at mycarinfo.com.my, or by asking your insurance agent to look it up for you. Simply have your IC number and vehicle registration number ready. 

Chrisa Tip: When our clients in PJ buy a new car, we handle the NCD transfer for them as part of the insurance setup. It's one of those steps that's easy to miss in the excitement of getting a new car — and we make sure it never gets overlooked.

Buying a new car? WhatsApp us and we'll set up your insurance with the full NCD applied: