A No-Claim Discount (NCD) entitles you to a lower motor insurance premium. The maximum NCD you can have for private car is 50% and the lowest is 0%. The maximum NCD you can have for commercial vehicle such as van Insurance is 20% and the lowest is 0%. Thus the discount you get depends on how much is your NCD %. This is one of the ways you are rewarded for being a safe driver.
If you have not made any insurance claim in the past 1 year, your NCD will increase by 10%. The 2 tables below illustrate this:
For Private Cars:
| Period Without Claims | NCD on Renewal |
| 1 year | 10% |
| 2 years | 20% |
| 3 years | 30% |
| 4 years | 40% |
| 5 years or more | 50% |
For Commercial Vehicles and Motorcycles:
| Period Without Claims | NCD on Renewal |
| 1 year | 10% |
| 2 years | 15% |
| 3 years or more | 20% |
For private car, if there is a claim on your motor insurance policy, your NCD upon renewal will drop by 30%, as illustrated in the table below:
| Current NCD | NCD on Renewal |
| 50% | Reduces to 20% |
| 40% | Reduces to 10% |
| 30% or less | Reduces to 0% |
Find out which insurer reduces NCD to 10% only in the event of accident claim.
For Commercial Vehicle and Motorcycles, if there is a claim on your commercial vehicle insurance policy, your NCD upon renewal will drop to 0% , as illustrated in the table below:
| Current NCD | NCD on Renewal |
| 20% | Reduces to 0% |
| 15% | Reduces to 0% |
| 10% | Reduces to 0% |
Windscreen claim for both private car and commercial vehicle will not affect NCD upon renewal. However if the windscreen damage is connected to vehicle body part, NCD will affected. There is also a limit on windscreen claim for commercial vehicle.
If there is no accident claim within the policy year, you will earn 10% NCD increment and this NCD can be transferred between husband and wife only. Some insurers do allow transfer NCD to their children. Find out more how to transfer NCD?
(NCD also cannot be transferred from one vehicle class to another. For example, you cannot transfer your Motorcycle’s 20% NCD to your Car or vice versa.)
If you are concerned about losing your NCD in case of an accident, you can buy an NCD protector. Most insurers only allow you to buy this rider if your NCD upon renewal is at 30% – 50%. With this, even if you make an insurance claim, your NCD will not drop by 30%. Some insurer do allow to get NCD protector when you have NCD 10%. Find out more to protect your NCD at 10%.
However you have to bear in mind that your NCD protector cannot be transferred from one insurer to another except few insurers allow to do so. This means if you want to retain your NCD at 50% after an accident, you have to renew with your existing insurer.
Finally, if you don’t own a car (or vehicle) for more than 12 months, you will lose your NCD. For example, if you sold off your car and went overseas, then bought a car again after more than 12 months, your NCD will start from 0% again.