Hi ,

NCD, NCD! It's something we accumulate over time for being a safe driver!

NCD, also known as No Claims Discount, is an incentive given to you if no claim has been made under your policy for a year or more with your current/existing insurer.

It helps reduce your subsequent year renewal premium for your car insurance.

Nonetheless, a premium quoted by an insurer based on a higher NCD would not necessarily be lower than that quoted by another insurer based on a lower NCD in a competitive market.

More often than not, you would be able to find lower premiums from other insurers with the same NCD you get from your existing insurer.

That could be due to the good claims experience the new insurer has with your particular car model. Hence, it is always beneficial to shop around and compare premium rates before buying.

Here are some answers to commonly asked questions regarding NCD:

1.Is my NCD transferable?

• Your NCD applies to you and not to your vehicle. Hence, even if you change your vehicle, you will retain your NCD.

• However, if you own multiple vehicles, it is best to check the last renewal letter you received from the respective insurer for each vehicle you own. They might differ depending on when you started the policy.

• Otherwise, NCD is transferable if you decide to switch insurers.

• NCD is also transferable to your spouse under special circumstances.

2.Can you insure against the loss of NCD?

• Your NCD may not be affected if you are found totally not at fault in an accident involving another vehicle. In all other cases, your NCD may be affected.

• If there is no NCD protector, your NCD will be reduced from 50% to 20%. Only a few insurers will reduce it to 30%.

• Some insurers may allow you to buy protection against the loss of the discount.

• In the event of one claim, the NCD protector would help to keep your NCD at 50% in the next renewal, provided you stay with the same insurer.

• Note that a protected NCD may not necessarily be transferable to another insurer

Here you go! I hope the insights above helped you understand a little more about NCD!

Please don't hesitate to contact me for any inquiries!

Best Regards,

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

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