Wednesday, October 21, 2009

Car Insurance - NCD Calculation

No Claim Discount (NCD) is a discount given to the policyholders upon renewal of their motor insurance if no claim is made from the policy for 12 months. The discount given is based on a fixed rate provided by Persatuan Insurans Am Malaysia (PIAM) Motor Tariff.

Period of Insurance - NCD
After 1st year = 0%
After 2nd year = 25%
After 3rd year = 30%
After 4th year = 38.33%
After 5th year = 45%
5th year onwards = 55%

* NCD is transferable to your new car or even you change the insurance company. The tactic is that you can buy a cheaper car and pay lower insurance premium for 5 years. When you have reached the maximum NCD (55%), then you will be able to save a lot for your luxury dream car.

Link for Private Vehicle Insurance Premium Calculator


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