It will turn into an OD claim, which will cost you your NCB.

If you're saying it will turn into OD, meaning claiming TP also will not succeed isn't it?

According to what I know, can proceed with OD first, once get confirmation is Third Party fault, then can convert into OD-KFK.

allowing OD to OD-KFK is at the mercy of your insurance's claim staff

whereas TPPD is at the mercy of the other party insurance's claim staff or if case brought to court, judge

allowing OD to OD-KFK is at the mercy of your insurance's claim staff:
I don't agree on this part. As long as all the necessary documents are submitted later (provided it is confirm you're not at fault), the status will be changed and NCD will be revert back. I have been working in insurance company, there is no such thing as "at their mercy" throughout my experience.

What is this NCB I alway hear people mention it? Very important?

No claims bonus. Also called NCD, no claims discount.

One year you don't make any claim, the next year, you get a 25% discount. The year after that, you get 33%, then 45%, then 55%.

The moment you make any claim, it resets all the way to 0%, and you have to work your way up again year by year.

Is it important? Depends. Is getting 55% discount on your insurance premium important to you?

Thanks bro, now i know why i hear this word a lot. Yup it is important.

Depends on how much your premium. Local car that below RM60k usually have very little effect...