Transfer of Insurance No Claim Bonus (NCB)


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!

By | 2013-01-24T18:13:44+08:00 December 7th, 2010|Auto Insurance|33 Comments

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  1. James December 7, 2010 at 8:09 pm - Reply

    Dear Cikgu Yap,

    I have involved with a traffic accident whereby i was traveling on the fast lane, and the other driver from the heavily jammed middle lane cuts into my lane and causes damages on the 2 doors on my side. Her damage was only the front right bumper.

    She has already put on indication light, but moving from static into fast lane seems impossible unless i make a brake which is dangerous to the other motorists behind me.

    so we decided to make police report and then we part our ways. upon arriving at police station, while referring to my driving license i realized it has been expired for a month.

    my solution is to renew it tomorrow in post office, after that make police report which is still within 24 hrs. my question is, will i still get a fine for driving with expired driving license during the cause of the accident? and will it effects the outcome of the traffic accident?

    • Cikgu Yap December 9, 2010 at 4:18 pm - Reply

      Renew license before making police report. Normally, both the drivers will be given a summon each.

  2. steve March 11, 2011 at 10:38 pm - Reply

    Dear Cikgu Yap,

    I’m the insured owner of two cars, both currently enjoying max NCD.

    Question is if I make a claim on one policy / car, do I lose the NCD on the 2nd car? BTW, the two cars are insured with different insurance companies, if it makes any difference to the case.


  3. paul March 14, 2011 at 4:24 pm - Reply

    hi Cikgu Yap,

    Can you help to clarify the following:

    – I’ve 3 cars all currently reached 55% NCD, all registered under my name.
    Question is if I make a 3rd party claim on one of the cars, will it affect the NCDs of the other 2 cars?

    My understanding is since the NCD applies to individual policy, claim on one should only impact that particular car NCD and not the other two. Pls confirm. Thanks for your help

    • Cikgu Yap March 16, 2011 at 6:12 am - Reply

      If you make a claim for one car, other cars and their NCB are not affected.

  4. Windson February 4, 2012 at 11:21 am - Reply

    Can I know is the NCD transferable between spouse, parents and children or siblings?
    For example, if I were a named driver for my father’s car policy, can my father’s NCD be transferred when I purchase a new car and car insurance?
    Thanks for ur help and hope to hear from u soon.

    • Cikgu Yap February 6, 2012 at 7:44 am - Reply

      NCD not transferable. Only for individual owner only.

  5. Suren March 1, 2012 at 3:01 pm - Reply

    If i am the owner of the vehicle and want to sell of the car, can I transfer the NCD to another vehicle prior to selling off the vehicle?

    Secondly, if I’m the owner of the new vehicle, what is the process of transferring the NCD to the new vehicle?

    • Cikgu Yap March 5, 2012 at 11:13 am - Reply

      You can transfer your old card NCD to your new vehicle. Provide your insurance agent with an old cover note. He should be able to do the rest.

  6. Darren March 2, 2012 at 2:15 pm - Reply

    My car was hit by waja during parking.
    My workshop told me that if the waja driver did not report to the police,even though the keputusan from balai proof that is waja’s fault,i also cant claim his insurance?Is it true?What should i do?Urgent ,TQ

    • Cikgu Yap March 5, 2012 at 11:10 am - Reply

      If you have the other party’s registration number, you can make a police report. Then claim his insurance company.

  7. gnfr March 12, 2012 at 3:40 pm - Reply

    Purchased a new car under my name by trading in our old car. However the old car was registered under my dad’s name as well as the insurance. Is it still possible to transfer the NCD to the new car which is now under my name?

    • Cikgu Yap March 16, 2012 at 9:34 am - Reply

      Your dad NCD for insurance cannot be transferred to your new car.

  8. JC March 18, 2012 at 11:43 pm - Reply

    It is possible to transfer NCD from overseas back to Malaysia?
    I just sold my car in overseas and returning back to Malaysia soon

    • Cikgu Yap March 20, 2012 at 4:09 pm - Reply

      Get confirmation letter for overseas insurance company. Submit to Malaysian insurance HQ in KL to try get NCD discount.

  9. Gengatharan Das April 5, 2012 at 2:26 pm - Reply

    I’ve just bought a new car and paid the insurance policy full. I also have a 15 year old car and pay comprehensive insurance till now. I still have my NCB for my ols car. I was told that I should have used my NCB to insure my new car. Is there anyway that I could do that now?


    • Cikgu Yap April 6, 2012 at 9:18 pm - Reply

      A good insurance agent should be able to readjust both your old and new vehicles’ particulars and payments. It maybe a hassle though.

  10. Jc May 28, 2012 at 11:39 am - Reply

    I have a insurance policy which will due in August, which upon renewal, will entitle 30% NCB.
    However, I am selling my car & buying a new car now. When I withdraw my NCB, i was told that i am currently only eligible for 25% NCB, which is right.

    My question is, sohow much NCB i will be eligible for my new car now? 25% or 30%? Thank you

    • Cikgu Yap May 29, 2012 at 4:40 pm - Reply

      If you have completed a year of insurance for your last policy, then you’re entitled for 30% NCB.

  11. S W Low January 24, 2013 at 12:40 pm - Reply

    Cikgu Yap,

    1 .Owned a car in Australia
    2. Period of cover: 3/10/2010 to 3/10/2013
    3. No claim Bonus/Rating Entitlement: Lifetime Rating One/Maximum 70% NCB
    for Life. ( Please note that a Maximum 70% NCB for/Lifetime Rating One is
    equivalent to 8 or more years oc claim-Free driving.
    4. Type of policy: Comprehensive.
    5. Policy held in the name of my wife and myself.


    1 Purchased a car in Malaysia and like to use the NCB entitlement from my
    previous insufrance for my new car.
    2. Accoding to the local insurance company that since my insurance in Australia
    still in force, I can only use the NCB by withdrawal NCB or cancel the insurance
    in Australia and get a letter of confirmation that the NCB has been withrawn or
    cancelled. According the local insurance company that this is an international
    Your advise is greatly appreciated.

    • Cikgu Yap January 26, 2013 at 12:58 am - Reply

      An insurance friend of mine informed me what you have related to me too. Get confirmation letter from your last insurance company in Australia. It certainly can be used in Malaysia. Be advised however, you will receive only 55% NCB unlike 75% in Australia.

  12. shahrul August 15, 2013 at 11:33 am - Reply

    Cikgu Yap,

    Can a ncb from a motorcycle (cup) tranfer to a superbike…


    • Cikgu Yap August 20, 2013 at 7:56 pm - Reply

      NCB cub can be transferred to superbike.

  13. Winnie September 6, 2013 at 8:22 pm - Reply

    I recently involved in an accident. After that I noticed my driving license has expired. The next day I immediately renew my license and proceed to make police report. With this, do I still entitled to claim for my car insurance?

    • Cikgu Yap September 10, 2013 at 7:21 pm - Reply

      My opinion is that you should be entitled to make a claim. Your license expiring is a technical issue. I don’t think the insurance company will take up the matter.

  14. zull March 28, 2014 at 10:40 am - Reply


    Cikgu Yap… i have i10 car NCB 45% and i want to buy new car Almera… can i have that NCB to new car? Since it different type of car… Can it be transferred?

    • Cikgu Yap April 2, 2014 at 3:42 pm - Reply

      You can use you 45% NCB for your new car.

  15. Tan December 29, 2014 at 3:00 pm - Reply

    Hi Cikgu Yap,
    I had sold my previous vehicle on AUG 2013 (38.33%).
    My next renewal is JAN 2014.

    DEC 2014, i just purchase new vehicle which mean i had stop renew for previous policy less than one year.

    My question is Do i still entitle for NCD ? and what is the actual percentage?

    • Cikgu Yap December 31, 2014 at 11:13 am - Reply

      Your last insurance policy did not last a full year. Therefore, in my opinion, you’ll be given the last NCD of 38 1/3% if ever the insurance company agrees. On top of that, it is probable you might be asked to compensate the insurance company for the 38 1/3 NCB the insurance company awarded you upon your last renewal.

  16. ong November 4, 2015 at 5:54 pm - Reply

    My car hit by a motorbike from left and he fell down. Sent him to hospital and was confirmed by the doctor he was fine. After few day he called and claim money from me that his leg was injurred. I didnt bordered him. However, he claims my insurance directly and it is now in investigation stage. Does this affected my NCB??

  17. Masilamani Seremban April 13, 2016 at 3:29 pm - Reply

    hi Cikgu Yap,

    quick question on NCB.
    Currently I own 2 cars (Car A – 55% NCB and Car B – 55%NCB )
    and intend to purchase a new car (CAR C)

    Back in 2007 , when I purchased CAR B , car sales men advised me to withdraw NCB from Car A and move it to CAR B .. which I did (happily!) . NCB for Car A become 0% , but it didn’t tear a hole in my wallet… Now , we fast forward to 2016 , I have again accumulated 55% NCB for Car A . Question , can I withdraw the NCB from Car A (again) and move to new car (CAR C ) ? since the Car A is still owned by me / policy is in my name.

    Your kind advise is very much appreciated , as the insurance cost with 0% NCB on CAR C will most certainly burn my wallet (literally).

  18. Dixon Wong July 1, 2019 at 4:13 pm - Reply

    Hi Cikgu Yap,
    i am Mr Wong, I had a Company Car (Own Company and is Sdn Bhd) after 10 years now i intend to sell or Transfer it to Individual name either me or my Son (26 Years Old with Valid License) i wonder My existing Company Car with 55% NCD can be transfer to others.. ie : me or My Son?
    Pls advice.
    Thank in Advance.
    Mr WOng

    • Cikgu Yap July 1, 2019 at 6:58 pm - Reply

      If the company car is in your company’s name, the 55% NCB is therefore not transferable to you or your son.

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