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If you have not made any claims for a year or more, you are entitled to a No-Claim Discount (NCD). The NCD reduces the policy premium for the following year. This is your insurer's way of recognising you for having been a careful driver. The following table shows how the NCD is set by all insurers across the industry.
Private car policies
| Private car policies |
Commercial vehicle and motorcycle policies |
| Period of insurance with no claim |
Discount on renewal |
Period of insurance with no claim |
Discount on renewal |
| 1 year |
10% |
1 year |
10% |
| 2 years |
20% |
2 years |
15% |
| 3 years |
30% |
3 years or longer |
20% |
| 4 years |
40% |
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| 5 years or longer |
50% |
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If I make a claim, will I automatically lose my NCD?
Not necessarily.
All insurers in Singapore use a guide called the Barometer of Liability Agreement (BOLA) to determine how much each party is liable in an accident.
The BOLA is designed to speed up claims processing. It does not diminish your right to contest liability under the law.
Under the BOLA, your NCD will not be affected if your liability is 20% or less in an accident involving an identified vehicle. In all other cases, your NCD may be affected.
Does my NCD apply to me, or to my vehicle?
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:
Your NCD can:
Be transferred to another vehicle owned by you, but it can't be applied to more than one vehicle at any point in time. For example, if you have accumulated a 30% NCD while using one vehicle, it does not follow that the same NCD applies to any other vehicle that you own or decide to buy. In other words, you will have to earn the NCD for each vehicle separately.
Your NCD can't:
Be transferred to another person.
Can I insure against the loss of my NCD?
If you have accumulated a 50% NCD (five years without a claim), some insurers may allow you to buy protection against the loss of the discount.
By paying a small amount of extra premium, you can make one claim during the year, and still have the discount fully protected. The 50% NCD is protected as follows:
| Claims during the period of insurance |
NCD on renewal |
| 1 |
50% |
| 2 |
20% |
| 3 or more |
Nil |
Please check with your insurer whether NCD cover is available.
Before making any claims:
If the total repair costs incurred is likely to be lower than the current discounts/rebates on your premium (also known as No Claim Discount), it is advisable not to claim the repair cost from your insurance. You are better off paying for the repairs yourself in the long run.
Refer to the following table to know how much discount on the premium you get to enjoy after you have made any claims.
| Current No Claim Discount |
Reduced No Claim Discount |
| 1 Claim Made |
> 2 Claims Made |
| 50% |
20% |
0% |
| 40% |
10% |
0% |
| 30%-10% |
0% |
0% |
source: www.gia.gov.sg
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