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Car insurance ncd calculation

A No-Claim Discount (NCD) entitles you to a lower car insurance premium. The maximum NCD you can have is 50% and the lowest is 0%. Thus the discount you get depends on how high your NCD is. 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%

With the above in mind, it does not necessarily mean you will lose your NCD if you make an insurance claim.

In Singapore, insurers depend on a benchmark known as the Barometer of Liability Agreement (BOLA) to determine what your responsibility is for each accident you get into. As long as it is less than 20%, your NCD will not be affected.

Otherwise your NCD may drop by 30%, as illustrated in the table below:

Current NCD NCD on Renewal
50% becomes 20%
40% becomes 10%
30% or less becomes 0%

There is a common misunderstanding about No-Claims Discount you must know about. People are often confused whether their NCD applies to them or their vehicle.

Technically, your NCD applies to you. This means whether you switch to another insurer or buy another vehicle, your NCD remains with you. Nevertheless if you own a second car, the NCD for that vehicle will have to start from 0%.

In other words, your NCD can be transferred from one insurer to another and from one car to another. But it cannot be transferred from one person to another.

(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 is at 50%. With this, even if you make an insurance claim, your NCD will not drop.

However you have to bear in mind that your NCD protector cannot be transferred from one insurer to another. 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.

If your car insurance renewal is near, you may find a great insurer by getting car insurance quotes from as many as 12 different car insurers. Simply take 2 minutes to fill up the form atwww.motorinsurancesingapore.com and the best 3 quotes will be sent to you.


What is No Claim Discount (NCD) ?

No Claim Discount is a discount given to the policyholders upon renewal of their motor insurance if no claim is made or arises from the policy for a continuous coverage of 12 months. The discount given is based on a fixed rate provided by Persatuan Insurans Am Malaysia (PIAM) Motor Tariff.

NCD Discount :

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Will I have NCD if this is the first time I purchase a vehicle?

If you are buying a vehicle for the first time, you will not have NCD car insurance on your motor policy for the first year on the road. If you have at least one claims free year, then, upon renewal of your motor insurance policy, you will be rewarded with a 25% NCD off your renewal premium.

Can I transfer my NCD from one vehicle to another?

Yes you can as the NCD car insurance is tied to your name and not a car. This typically happens when you have sold your old vehicle and want to transfer your NCD to the vehicle you are purchasing. If you do not transfer your NCD to another vehicle, your NCD entitlement level will drop one level each year. For example, if your NCD entitlement is 55% this year, it will drop to 45% next year, if it is not transferred to another vehicle. This will continue until the NCD level reaches 0%.

How will my NCD be forfeited?

If any claim is made or arises (with exception to windscreen and No-fault Own Damage claim) on your motor insurance policy during the period of cover, your NCD for that vehicle will be forfeited and reverts to 0%. You will have to begin to accumulate your discount in a new cycle.

How To Check NCD Online ?

You can check your NCD car insurance using the NCD calculator at https://www.mycarinfo.com.my/NCDCheck/Online

You need your vehicle registration and ID number to perform the NCD search.

If any discrepancies in the car insurance NCD amount are noted, kindly contact your respective insurance company or takaful operator for further clarification.

No claim discount is important to reduce your car insurance cost.

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  • What is NCD (No Claim Discount)? Posted on January 7, 2013 by admin in what is No Claim Discount, commonly referred as NCD is a vital part of your car Insurance. The amount of your insurance premium payable or saving is dependent on your NCD entitlement. As the name suggest, this no claim discount is extended to you when you do not make any claim toward your insurance during the in force period. Thus, when you renew your insurance for the next 12 month period, you are entitled to this no claim discount (NCD). The NCD is tied to your name and not a car. Thus, it is actually transferable. Meaning that if you sell off your car and get yourself a new car, your new car insurance can be applied with your entitled NCD. In the event that you are selling off your old car, remember to cancel that policy as any remaining period covered not used can be refund to you. Although the name is called No Claim Discount, it does not means you cannot claimed against your own insurance. In the event of an accident, which you are not at fault, you are entitled to claim your own insurance for repair and yet you do not lose your NCD. Your NCD will only be lost if you are involved in an accident and you are at fault, resulting in other parties claiming against you. Once your insurance has been claimed, you lose your NCD entitlement and it is reverted to zero (0%) – no discount. But if you have not been involved in any accident, your NCD entitlement will increase over the years. The maximum NCD one can entitle to is 55%. While you can accumulate your NCD over the years, you may also lose your NCD if you do not own or insured your vehicle over the years. Below is the similar illustration of your NCD entitlement over the years for private vehicles: First Year – 0% Second Year – 25% Third Year – 30% Forth Year – 38.33% Firth Year – 45% Onward – 55% As for motorcycle and commercial registered vehicles, the NCD rate will be much lower and cap at the max of 25%. First Year – 0% Second Year – 15% Third Year – 20% Forth Year – 25% Onward – 25% If you are not sure of your NCD entitlement, you can actually check it online via this link. If you have renewed your insurance policy without taking into your NCD entitlement, inform your agent and they will help you to apply your NCD and have the excess payment refund to you.
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