If you have not made motor insurance claims, you are entitled to No-Claim Discount (NCD). This guide gives you all the essential info you need as a vehicle owner about no claim discount, a.k.a. NCD.

motor insurance ncd

What is No Claim Discount?

If your policy has no claim for a year or more, you are entitled to a No-Claim Discount (NCD). The NCD reduces the 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 policiesCommercial vehicle and motorcycle policies
Period of insurance with no claimDiscount on renewalPeriod of insurance with no claimDiscount on renewal
1 year10%1 year10%
2 years20%2 years15%
3 years30%3 years or longer20%
4 years40%
5 years or longer50%

Will I receive NCD if I have been driving as a Named driver on somebody else policy


Will I receive NCD if I was driving a company car

If you have been driving a company car and you then buy a personal car, you may be allowed to transfer the NCD. This is provided you can prove it with a letter from the HR department of your employer.

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.

How much is NCD reduced in the event of an accident?

Where an accident is partly or entirely your fault, a reduction in your No Claim Discount will apply if you have not selected “No Claim Discount Protector” cover.

If there is a claim made under the policy, your NCD will be reduced as follows.

Private car policiesCommercial vehicle and motorcycle policies
Current NCDNCD after 1 claimCurrent NCDNCD after 1 claim
30% and under0%

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 CANNOT be transferred to another person, but from my experience, occasionally, the insurer may allow you to transfer between spouses for once only.

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. Certain insurer allows NCD protector with 30% NCD.

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 insurancePrivate car policies
3 or moreNil

Please check with your insurer whether NCD protection cover is available.

Will I lose my NCD if there is a break in ownership of my vehicle?

Most insurers in Singapore will allow you to keep your NCD should there be a break in ownership for up to 24 months. Some insurers set the timeframe at 12 months. You should contact your insurer for details.

What to consider Before making any claims:

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.

If I settle the claim privately, do I have to report the accident to my insurance company?

Under the new Motor Claims Framework effective from 1st June 2008, If you do not report an accident to your insurer within 24 hours or by the next working day and/or do not provide your car to us for inspection in accordance with the terms of the , the insurer may reduce your No Claim Discount upon renewal of your policy.

How can I compare motor insurance quotations?

Finding the right Motor Insurance is easy with our free motor insurance comparison system. Instead of checking with different insurers one by one, all you have to do is to click here.

Click here to request motor insurance quotation comparison table FOR FREE

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

  • Can my wife transfer her NCD to me which stands at 50% for my new car? If can transfer, her NCD will reset to 0%, will her NCD build up again for her current car?

  • Hi there,
    If person who hit our car and insurance was expired. When we claim in our insurance still our NCD will lost.
    Kindly please advise on this matter.

  • Buying new car with NCD 10% at 11th month, left 1 month I will get to 20%.

    Question 1
    Can I cancel after 2 month with the dealer Insurer and get another insurer with 20% NCD?

    Question 2
    If I cancel, will I get the refund of the unuse 10 month of insurance?

  • Hi I have recently gone from owning two vehicles to one, I sold one vehicle which I had 6y NCD on and then when renewed the insurance on the other I tried to put the 6years on that. I then got told that it would show me having 6years but I still only get the original amount of 3y NCD. Is this correct

  • I’m the named driver of a car owned by my daughter and had bought insurance for her car under my 50% NCD. Can I change insurance company and bring forward my NCD with the same arrangement as the previous insurance company?

  • I have been driving my company car registered under my boss name for the past 6 years. I are now buying over the car, am I still entitled to the NCD of 50% after the transfer of ownership?

  • Assume this scenario – 2 cars are involved in a minor accident where Car B has rear-ended Car A, and Driver B is at fault. Driver B wants to settle privately rather than affect his NCD. Driver B prepares a statement admitting liability and that he will pay all repair costs, and asks Driver A to sign.

    1. Once this is done, can Driver B ask Driver A not to report the accident to his motor insurer? And should Driver A report or not report?
    2. Is there some undertaking that Driver B can ask Driver A to sign, whereby A either agrees to (a) not declare the accident to his insurer, or (b) not claim from B’s insurer
    3. Who has the prerogative to decide which workshop to do the repairs at, A or B?
    4. What should be in the private settlement agreement/undertaking signed by both parties?

  • I have been driving 59 years accident free in 102 countries and over a million miles, through swamps, deserts, jungles, mountains ( see recent daily papers ). On all 7 continents, yet because i chose to mothball my own car fro three years whilst driving abroad and using friends cars whilst here in UK, im now a bad driver. an dhave to start again with absolutely zero NCD like a kid of 17, this is criminal.

    INSURANCE COMPANIES ARE CON ARTISTS.these are Maifia tactics, why doe s person become a risk because he choses to save money and drive cars abroad or friends.I BET YOUR BOTTOM DOLLAR IF I HAD AN ACCIDENT IN A FRIENDS CAR THAT WOULD COUNT AGAINST ME…TALK ABOUT A CON AND WIN WIN.
    Last time i insured my Toyota N986FET it was £167…its now over a thousand pounds ( the cars worth around £500 ) …whats the answer join the crime syndicates and start my own insurance company.

    Show me a person with a better drving record and i’ll show you a £17.24 note.

    without prejudice.

  • Hi Ivan,

    I have a policy with AXA (smart drive) but the end date doesn’t match with the road tax date. They advise me to extend the policy by the required 2.5 months. But they also tell me that the next level of NCD will be credited to me only after this extra 2.5 months (on top of one full year). Is it a normal practice.

    I have already gone through this a couple of times and losing out on NCD. This seems like a scheme forcing me to stick to AXA as much as possible.

    Please advise.


  • I own a car in S’pore which I enjoy NCD for insurance. I plan to buy a car in M’sia. Am I entitled to NCD for M’sian car insurance? Thank you.

      • NCD in Singapore is transferable if a Singaporean buys and owns a car in Malaysia. However, you need to either withdraw or lapse your Singapore NCD then you can transfer. You will also need letter from your Singapore car insurance company to show your NCD status and how many years of accident/claim free before you can enjoy equivalent NCD.

  • Hi, i hit the rear of a vehicle on the expressway. If the other driver claims against my insurance for his repair but i do not use my insurance to pay my own car damages, will i lose my NCD?

  • Hi Ivan,
    Recently I hit someone on the rear on the expressway. Before that I had not been involved in any accident. I have a 50% NCD and a NCD protector. I had to claim against my own insurance to for the repair to my car and the other car has also claim against my insurance as it was my fault.
    1) Do I still get to keep the 50% NCD? I understand that I can keep my NCD with the protector but if the other driver also claim on my insurance, is that considered 2 claims instead of 1?
    2) I am thinking of trading in this car for a new one after the accident. Will the new car insurance company recognise the 50% NCD, especially after the claims on my existing insurance with the current company?

    • Hi, Sam

      1) Do I still get to keep the 50% NCD? I understand that I can keep my NCD with the protector but if the other driver also claim on my insurance, is that considered 2 claims instead of 1?

      It will be considered as one accident

      2) I am thinking of trading in this car for a new one after the accident. Will the new car insurance company recognise the 50% NCD, especially after the claims on my existing insurance with the current company?

      To utilize the NCD protectior, you need to renew with the same insurance company, the new insurer will not recognize the 50% NCD.

  • I have a motorcycle with 20% NCD with insurer A. I bought another motorcycle and insured it with insurer B but they say I can only benefit from 20% NCD if I cancel my insurance with insurer A. Both insurance policies are comprehensive. I don’t want to cancel with insurer A because I still need to insure the bike until I sell it. I am thinking of downgrading to third party insurance only for that bike since I don’t ride it anymore. How can I make sure I get 20% discount on both insurance premiums?

    • Hi, Julien

      You can only apply the NCD to one of your bikes. So you should apply it to the one with higher premium. You can transfer the NCD to another bike once you sell one.

  • Hi Ivan, if I’m going to buy a car with 11 months Coe left. Am I gonna be awarded with NCD thereafter? Can the insurance be bought for 12months?

    • Dear Ian

      Yes, you will still have your NCD, it is not related to COE. first year insurance is typically 12 months, if you renew your COE, you can continue the insurance

  • Hi!
    I have recently made an insurance claim on my vehicle registered using company’s name.
    Now, I plan to get a motorcycle in my name. Will the claim I made in my company’s name effect the insurance that I’m going to buy in my name?

  • When I change my car insurer from DirectAsia to a new one, the previous insurer said my NCD is 0%. I had a 50% NCD all along and did not make a single claim for the last 15 years. What can I do now? Pls help.

  • Hi.
    I have 2 questions.
    1. If I got suspended for 1 year because of traffic offense and my car is still driven by my wife does my ncd still carry on? And I also manage to renew my car insurance using my wife name but using my ncd. Why is that so?
    2. If I buy car in the future, so my ncd will be that particular percentage but zero years of driving. Is this right?
    Thank you

    • Hi, Ron

      Below are the answers:

      1. I am not sure if you were wrongly advised but technically, if the car is under your name, your insurance policy has to be under your name. Insurer will put “Insured Not Driving”. You can email me the policy and I can help you take a look.

      2. That depends on what has happened for Question 1.

  • Hi, Would like to enquire about NCD. My situation: bought a new car in Dec 2013 road tax renewal is Oct/Apr of each year. So subsequent renewal of Road Tax will be affected by the non-alignment of road tax and motor insurance.

    If I cancel my motor insurance in Oct 2014, and bought a new one so that I can renew and align my road tax & motor insurance. Will my NCD will affected due to my incomplete year with the initial insurer?

  • Hi i have 2 question
    1)If i have 2 cars, car A & car B with 30% NCD each. If car A has an accident claim, will it affect the 30% of car B or car B’s premium the next follow year?

    2)If the accident involved the named driver and not the insured, will there be any difference in question 1.


    • Hi George

      Only the NCD of car A will be affected. However, you still need to declare the accident to car B insurer as you are the owner of both, and car B premium may have loading even through ncd remains the same.

      You will still be affected even if the accident was caused by named driver.

  • Hi if my car rear hit another while reversing, I did a report with ntuc report centre and paid the repairs from my own pocket due to my own fault. Will This affect my ncd?

    • Dear Sudihir

      If the other party does not claim your insurance. It is reporting only, your NCD should not be affected. However, normally the insurer will hold a “reserve” in case of future claim. They will only be able to reinstate your NCD is the other party is willing to sign a discharge letter.

  • i had a side by side accident case. the vehicle change lane without noticing me and hit 5cm of side and follows down to the back due to breaking and reaction time. will this kind of case affect my NCD. zzzz

    • Hi, Alan

      whether your ncd is affected depends on if your insurance is claimed. the insurer has to establish whose fault it is and the wrong party’s ncd will be affected. sometimes, both parties will be penalized if it is 50-50 case.

  • Hi, i achieved 50% NCD in 2007 but i sold my car on the same year to take public transport for the next 4yrs. And in 2012 I decide to buy a car again, do I still enjoy the 50% NCD over the insurance premium which I had accumulated since 2007?

  • I owned a car in Malaysia with NCD 50%. Now I wish to buy a car in Singapore. Can I transfer the NCD from Malaysia to my car in singapore?

    Thanks to advise!

  • Yes, it is common practice to refund NCD after policy commences if not credited in the beginning.

    However, it is important to understand why the ncd could not be confirmed before policy incepts to prevent future discrepancy.

  • 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…

  • An SBS bus jus hit the rear of my car at a slip road
    Have send to the authorised workshop and now repairing …
    Will this affect my NCD when i renew my insurance next year??

  • If I owned a company registered car with 20% NCD, and I sold away the car and purchased a new car registered under my name. Can I transfer the NCD from the company registered car to my new car?

  • What would happen in the situation where you have been a careful driver for over 5 years but get into a crash that is your own fault. Would you lose your NCD completely or would you lose part of it?

  • it affects the owner of the car regardless who drives. but the driver also has to declare his accident to his own insurer if he has his own car.

  • For example, the one getting into an accident and claim the premium is not the owner of the car. Does the NCD affects the driver or the owner of the car?

  • Can NCD be transfered from one private vehicle to another but still be insured for both but using the NCD from the previous vehicle on the new vehicle only?

  • I am a first time car owner. have never registered owning a car before.
    I collected my present car in April 2008. I obtained my driving license in Aug 2000. Am I entitled to the NCD for the insurance that I bought in April 2008?

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