A No-Claim Discount (‘NCD’) is an entitlement given to you if no claim has been made under your policy for a year or more with the current/existing insurer. It reduces the premium you have to pay for the following year. This is your insurer's way of recognising and rewarding you for having been a careful driver. There is a standard followed by all insurers in setting the NCD, depending on your type of vehicle (private or commercial/motorcycle) and the period of insurance with no claim.
The following table shows how the NCD is set by all insurers across the industry.
NCD is just one of the factors affecting the premium. 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. Consumers are advised to shop around and compare premium rates before buying.
Not necessarily. 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 a claim made under the policy, your NCD will be reduced as follows.
If you make more than one claim in a year, your NCD will be
Please check with your insurer whether your NCD will be affected.
Some insurers do offer a protection on your NCD in the event of a claim. Please refer to question “Can I insure against the loss of my NCD?” to find out more.
In principle, your NCD applies to you and not to your vehicle. For example, if you sell your vehicle and buy another one, you will retain your NCD. However, if you own more than one vehicle, you might have a different NCD for each vehicle. You should check the details with your insurer, but generally:
Be transferred to another person, except for your spouse and within the current insurer only. Transfer of NCD to your spouse will not be applicable if you renew your policy with another insurer.
Most insurers in Singapore will allow you to keep your NCD should there be a break in vehicle ownership for up to 24 months. Some insurers set the timeframe at 12 months. You should contact your insurer for details.
If you have accumulated a certain level of NCD, for example 50% NCD (five years or longer
claim), some insurers may allow you to buy protection against the loss of the
By paying a small amount of extra premium, you can make one claim within the period of insurance, and still have the NCD fully protected. The protected NCD is as follows:
Unlike NCD, the protected NCD may not necessarily be transferable to another
an NCD Protector will also not protect you against non-renewal or cancellation of
The features of a NCD Protector may differ from insurer to insurer. Always check carefully and understand how the NCD protection cover works before purchasing the protection.
Please check with your insurer whether NCD protection cover is available.
If you have not violated any traffic rules for three consecutive years, you are entitled to a Certificate of Merit from the Singapore Traffic Police.
Should your NCD be 30% and above for a private car policy or 20% for a privately owned commercial vehicle policy, some insurers may reward you with a further 5% discount upon presentation of your Certificate of Merit.