No Claim Discount (NCD) is also known as “No Claim Bonus” or “No Claim Entitlement”. No Claim Discount (NCD) is a financial incentive for the cars owner for not making any insurance claim under the car insurance policy. In Singapore, if there is no insurance claim made during a period of car insurance immediately before the renewal of a car insurance policy, a No Claim Discount (NCD) will be granted on the renewal car insurance premium. The following table shows how all car insurance companies set the No Claim Discount (NCD) across the car insurance industry.
The rate of discount for Private Vehicles
The rate of discount for Motorcycles and Commercial Vehicles
If you have not made any insurance claim for at least one year, you are entitled to a No Claim Discount (NCD) when you renew your car insurance policy. The awarding of No Claim Discount (NCD) is an industry standard practice, which means all car insurance companies in Singapore have this discount for car drivers not making a insurance claim. The No Claim Discount (NCD) is transferable from one car insurance companies to another. For administrative purposes, the cars owner will have to provide the new car insurance company with the name of the previous car insurance company and car insurance policy number. So that new car insurance company can confirm the amount of No Claim Discount (NCD) with previous car insurance company. No Claim Discount (NCD) also transferable to parent, child or spouse.
Insurance Claims against another cars driver would not affect your car insurance record. It also means that after five years of zero insurance claims, it is possible to enjoy a No Claim Discount (NCD) of 50 per cent, which effectively halves your car insurance premium in the following year.
Note: The No Claim Discount (NCD) from your country is taken into consideration when you get car insurance policy here. Do take with you a certificate of No Claim Discount (NCD) from your car insurance company and we can use it to get cheap car insurance in Singapore. This would enable you to enjoy a No Claim discount (NCD) on car insurance premium, ranging from 10 – 50 %.
If an insurance claim is made during the car insurance policy year while the cars owner is enjoying a No Claim Discount (NCD), the No Claim Discount (NCD) will be reduced at the next car insurance policy renewal date as follows:
The rate of No Claim Discount (NCD) for private cars
Unlike the No Claim Discount (NCD) for private cars, the No Claim Discount (NCD) wills not be granted on next car insurance policy renewal once an insurance claim is made with respect to a commercial vehicle.
The rate of No Claim Discount (NCD) for commercial vehicle
No Claim Discount (NCD) Protector
The No Claim Discount (NCD) Protector is an extension of your car insurance policy. It protects your No Claim Discount (NCD) status by allowing you to make an insurance claim under your car insurance policy without losing their entitlement for No Claim Discount (NCD) status. Your 50% No Claim Discount (NCD) will be protected for the first insurance claim in the car insurance policy year with additional car insurance premiums. This benefit is only available to you if your No Claim Discount (NCD) is 50% in most of the cases.
The No Claim Discount (NCD) protector policy extension offers the following protection:
For example, if the cars owner has earned a maximum No Claim Discount (NCD) of 50% and meets with a car accident, the No Claim Discount (NCD) on next car insurance policy renewal will be reduced to 20%. However, by buying the No Claim Discount (NCD) protector at the inception of the Private Motor Car Insurance policy, the cars owner will be able to preserve his No Claim Discount (NCD) of 50%.