KUALA LUMPUR: All vehicles owners can now check their motor insurance discount or Non Claim Discount (NCD) for free via a new online service.

The service, which is also open to Takaful insurance holders, is provided by ISM Insurance Services Malaysia Bhd and effective Jan 1 this year. It is part of the modernisation of the motor insurance industry.

ISM CEO Charles Rajendram said after the official launch of the service yesterday that in the past, consumers were often asked to pay the full premium until the verification of the NCD level by the insurers.

“While the insurers would eventually refund any amount overpaid upon verification, this practice is unfair with the highest level of NCD at 55%. This is equivalent to RM550 on a RM1,000 policy,” he said.

The real value in the system, according to Rajendram, would be enabling all consumers to have access to NCD via a simple online service. It can also be accessed via an SMS service that started last year but it would cost RM2.

“If there was any dispute on the NCD level in the database, consumers must contact their respective insurer or takaful operator and ensure that they update the information on the central database,” said Rajendram.

ISM Insurance Services Malaysia is a financial, shares services provider.

This article appeared in The Edge Financial Daily, February 10, 2010.