What you need to know about No claim discount (Transfer) - Part 3

Accordingly to GIA guidelines, NCD can be transferred to another vehicle you owned but it is not transferable to another person. Nevertheless, over the years, insurers have developed their own practice and do allow certain types of transfer.

The most commons are transfer between spouses and transfer between parent & child. There is also possible transfer between companies, say transfer from Sole proprietor to company. All the transfers will require the relevant supporting documents to be presented prior to approval. I have listed a common list which might not apply to all scenarios.

1. NCD transfer form - There is usually a standard format provided by the insurer.
2. Marriage certificate
3. Birth certificate
4. Grant of letter of administration or probate - For cases whereby the insured has passed away.
5. Registry of companies certificate
6. Driving license

However, do take note that some insurer will tie the NCD to the transferee driving experience. Therefore, if a father wants to transfer 50% NCD to the son but the son has only 2 years + of driving experience, the insurer may allow transfer of 20% NCD only then. Also, some insurer will not allow transfer if there is any at fault claim on the transferee.

Well, every insurer has own internal criteria and you might want to check with your own insurer before any commitment to the policy.