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Published on February 04, 2025

Related Questions

What is No Claim Discount (NCD), and how does it affect my premium?
No Claim Discount (NCD) is a discount given by insurance companies for not making any claims during the policy period. It’s a way to incentivize safe and responsible driving. The NCD is usually represented as a percentage and is applied to the renewal premium of the insurance policy. Here’s an example to illustrate how NCD works:Let’s say you have a car insurance policy and during the policy term (usually 1 year), you haven’t made any claims. At the time of renewal, the insurance company may offer you an NCD of 20% for your next policy term. Here’s how the premium calculation might work:Current Insurance Premium: RM 1,000 (without NCD)NCD Percentage: 20%NCD Discount: 20% of RM 1,000 = RM 200Premium for Next Policy Term: RM 1,000 – RM 200 = RM 800So, with a 20% NCD, your insurance premium for the next policy term would be RM 800 instead of RM 1,000.The NCD percentage increases with each claim-free year, typically up to a certain maximum, offering higher discounts on the premium. The NCD rates for private cars, motorcycles, and commercial vehicles are as follows:No-Claim PeriodPrivate CarMotorcycleCommercial Vehicle1st year0%0%0%2nd year25%15%15%3rd year30%20%20%4th year38.33%25%25%5th year45%25%25%6th year onwards55%25%25%However, if you make a claim during a policy term, your NCD may be reduced in the subsequent policy term, leading to a lower NCD discount and a higher premium. It’s important to maintain safe driving practices to maximize and retain your NCD, resulting in lower insurance premiums over time.
When should I renew my vehicle insurance?
You have the flexibility to renew your vehicle insurance within the 2-month period prior to your policy’s expiry date. Ensure you renew it before the expiry date to maintain continuous coverage.
What happens if I miss renewing my vehicle insurance on time?
If you happen to miss the renewal date for your vehicle insurance, it’s important to be aware of the consequences. One significant outcome is that your vehicle will no longer have insurance coverage, which means it’s exposed to potential financial risks in case of accidents, damages, or other unfortunate events. Additionally, driving without insurance is against the law in many jurisdictions, including Malaysia. As a result, you may face legal penalties, fines, or other legal actions if caught driving without the necessary insurance coverage. To avoid these complications and ensure both financial security and legal compliance, it’s crucial to renew on time. But don’t worry if you renew your vehicle using iLyF we will remind you at least 2 weeks before your policy expires.
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