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FAQ

> What is a No Claims Discount and how does it work?

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.

Type Period of insurance with no claim Discount on renewal
Private Car Policies 1 year 10%
2 years 20%
3 years 30%
4 years 40%
5 years or longer 50%
Commercial Vehicle & Motorcycle Policies 1 year 10%
2 years 15%
3 years or longer 20%

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.

> If I make a claim, will I automatically lose my NCD?

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.

Type Current NCD NCD after 1 claim
Private Car Policies 50% 20%
40% 10%
30% and under 0%
Commercial Vehicle & Motorcycle Policies 20% / 15% / 10% 0%

If you make more than one claim in a year, your NCD will be reduced to 0%.

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.

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