No-Claim Discount or NCD refers to a discount given to car owner due to their good historical records of being a safe driver and has not claimed against his or her own car insurance for some time.

Drop in No Claim Discount

No Claim Discount for Private Car

For private cars, No Claim Discount usually increases by 10% every year till it reaches 50%. With 50% percent, it means that you are entitled to a 50% discount on your car or vehicle insurance premium. Below is a table to show the NCD corresponding with the number of years without insurance claim.

 

Years Without Claiming Insurance

NCD when Renewing Insurance

1 year

10%

2 years

20%

3 years

30%

4 years

40%

5 years or more

50%

Understanding how NCD works

No Claim Discount for Commercial Vehicle and Motorcycle

For commercial vehicle insurance and motorcycle insurance, No Claim Discount usually increases by 5% after the first year and is capped at 20%. Below shows the NCD of commercial vehicle and motorcar corresponding with the number of years without insurance claim.

 

Years Without Claiming Insurance

NCD when Renewing Insurance

1 year

10%

2 years

15%

3 years or more

20%

Drop in NCD

When you are involved in an accident, your No Claim Discount will decrease. You should lose some but usually not all your NCD when you make a claim. The reduction depends on the extent you are responsible for the accident. In Singapore, we use the benchmark, Barometer of Liability, to determine the percentage of reduction in NCD.

NCD follows the driver even when the driver changes insurance policy or switch insurance company. However, NCD cannot be transferred from one driver to another driver. In addition, if you buy another car, the second car which you own does not inherit the same NCD as your first car. It will have to start from 0%.

For vehicle owners who are afraid of losing their NCD, they may purchase a protection for NCD, called No Claim Discount protector. With this protector, you will retain your NCD even when you make a claim.

Other than losing your No Claim Discount when you meet an accident and make a claim, you can also lose your NCD if you sell away your car and do not own a car for more than 12 months. After more than 12 months without a car, your will start your NCD from 0% when you buy another car.

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