No Claim Discount
No Claim Discount (NCD) also known as No claim entitlement or no claim bonus. In Singapore NCD is a financial incentive for driver who have not made any claim during the insurance policy year. The incentive is granted before the renewal of the policy and the maximum discount is up to 50%. In the case if a claim is made during the policy year whilst the insured is enjoying a NCD, the NCD will be reduced at the next renewal of the policy.
In Singapore it is very common of switching insurer after claiming from the current insurer. Some may even choose not to declare the claim amount and incident of the claim to think that they might cheat the system to avoid the hike of premium. However, the insurer can stop providing coverage once they detect a fraud and the insured have to make up the difference in premium to reinstate the coverage. During the period without coverage, the insured is not allow to drive as it is considered “driving without insurance”.
NCD is transferable from one insurer to another however the insured have to provide the new insurer with the name of the previous insurer and the policy number. It is very common that some of the online quotation form include such details to be filled up for this particular reason.
NCD is also transferable from driver to another driver. Very commonly is from parents to their children. However such transfer is only transferable once and irreversible.
Apart from financial incentive by insurer there are another form of discount which is given by the traffic police to reward driver without any traffic offense. A flat 5% is given by the traffic police for driver without any traffic offense.
Hope the above clears some of the doubts. Feel free to post any question and comments. Thank you.
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i’m currently having car policy with AXA insurance and planning to change to other insurer. According to the new insurer who have quoted to me, they could not get the 10% ncd entitlement confirmation from AXA as AXA delaying to send the ncd entitlement confirmation to them. As a result the new insurer advise me to take up the policy and pay the full premium without ncd discount 1st. But the new insurer promise to refund me the 10% premium once AXA has send them the ncd confirmation. Is situation commonly happen? Need some advise from the senior as i’m new…
I am no senior as I am still learning. Anyway just to clarify with you did you make any claim or did someone claim against you which you are unaware of? Have you called the AXA to verify and the reason why they are delaying the NCD entitlement? In any case the new insurer can refund you after they get the entitlement confirmation from your previous insurer. It is not common such incident happens, I would advise you to call and verify with the AXA insurance before making the decision.