Insurance

Some readers have written to this blog inquiring the transfer of Non Claim Bonus (N.C.B.) or Non Claim Discount (N.C.D.) of one vehicle in one’s person name to another.

The answer to the above is unfortunately “No”. The benefit will not be accrued or provided to the new owner. It is therefore for the insurer only.

Other readers have written in to this blog to ask what happens when one makes a claim for an accident for instance. When one makes a claim for a damaged bumper for example, normally the repairs for the above mentioned item is usually done at an approved Persatuan Insurans Am Malaysia (PIAM) workshop that is approved by the insurers.

This means the owner of the car making the claim will then lose or forgo the N.C.B. benefits. The following year, the insurance premiums will be calculated at full rate.

There are also some who inquired of me, can the N.C.B. or N.C.D. be transferred to another vehicle? The answer is “Yes”, provided the insurer is the same person involved.

There are however some readers who pose this question to this blog. They ask, if a car is insured for example for RM100,000, how much will the insurance company reimburse the insurer in case a vehicle is stolen or lost?

In most instances, insurance companies will pay up to a tune of some 80 – 85% of the total amount insured. A vehicle insured for a sum of RM100,000 should therefore be able to receive an insurance claim of some RM80,000 – RM85,000 reimbursement.

However, if one is not satisfied with the amount offered, one then could very well engage a lawyer or solicitor to demand for a higher amount from the insurance company involved.

There have been cases whereby insurance companies have been reported to have paid mush higher claims pertaining to loss of a vehicle. Some have even paid a 100%. This article has been narrowed down to emphasizing such topics as N.C.B. or N.C.D. inter-changeable between cars which are owned by the same person.

In later articles, attention will be provided to passenger liability as well as the question or insuring the front windscreen, rear windscreen and all other glass items found in a car. The question of excess liability will also be raised and explained explicitly for the benefit of those who are not too well versed wit this clause.

So readers who are interested to know about the above mentioned topics, do keep in touch. Safe driving!