What you need to know about No claim discount (Basic) - Part 1

One way to reduce your annual premium is to earn your No Claim disount.

The No Claim Discount or NCD, as it's commonly known, is a discount provided by insurer as an incentive to the insured for being claims free. Thus, if you have been driving a motor vehicle and does not have any accident or claim against your policy on the last 1 year, your insurer will provide you with an additional 10% NCD on your renewal premium.

In Singapore, you may earn up to 50% NCD for private vehicle and 20% NCD for commercial vehicle and motorcycle. In some other countries, the NCD can go as high as 65% or even 70%.



If you are currently enjoying 50% NCD and has a at-fault claim against your policy, your NCD will reduce to 20% on renewal. Likewise, if you are enjoying 30% NCD and has a at-fault claim against your policy, your NCD will reduce to 0% on renewal.

Some insurers offer NCD protector to insured who are enjoying 50% NCD. The additional premium varies among the insurers but it is usually negligible, around 10% or minimum $50. The purpose of which is to safeguard your NCD at 50% in the event you have an at-fault claim in the policy year. However, if you have 2 at-fault claim in the policy year, the NCD will step down to 20%.