NCD means ‘no claim discount’ offered to owners of cars in Singapore. This no claim discount, Singapore is awarded on an annual basis by the insurer only if no claim has been made on the current insurance of the car you own. This is one type of recognition by the insurer for the safety factor looked into while driving. With more years accumulated without any claim made you can get a discount on the total premium.
Working of the NCD (No-claim Discount):
The percentage discounted tends to correspond to the year number the owner of a car has not made any claim from the insurer. The first year of driving a car sans any claims made can get you a 10% discount on the next premium to be paid for renewal.
The next year it tends to increase to 20% and this carries on till it reaches to 50%. This means, the discount of the premiums increases with no claims made over the passing of time with the no claim discount, Singapore.
Application of the NCD:
You need to be aware that this no claim discount, Singapore applies to the individual and not the car. This means, if you already have the NCD discount of 50% on one car, the other car owned by you has 0% NCD.
In case you intend selling the car with the no claim discount and opt for another one, you yet keep the discount for the new car. You can also switch the insurer at the renewal time and avail of the no claim discount, Singapore. This transfer process is simple and does not have any hassles.
This NCD or no claim discount, Singapore is not applicable for transfer from person-to-person except if an individual inherits the car and is the legal heir, that too, only if the policy owner expires. The legal heir can make a choice of the insurer at the renewal time.
Insurer decides the NCD:
The no claim discount, Singapore can be decided only by the specific insurer.
Protecting the NCD:
There are ways and means to ensure protection of the no claim discount, Singapore.
*In case of a claim, you can return the amount paid by the insurer for the claim.
*Buying the NCD protector to protect the no claim discount for a claim. In case there is more than a single claim made this NCD tends to reduce in accordance to the terms and conditions of the insurer.
The driver of a vehicle needs to declare the NCD when purchasing an insurance policy for the vehicle. The driver and the NCD are verified by the insurer. If the previous insurer needs to confirm that the NCD is lower than that declared, the insurance policy is rectified and you are required to make a payment of the additional premium.
In case of an accident not being reported, you are penalized by the insurer and 10% is further reduced besides the no claim discount, Singapore deduction.
Opting for the NCD Protector can spare you from most of the problems. This is an add-on to the car insurance policy.
The Working of the NCD Protector:
Opting for the NCD Protector you can make one insurance claim without losing the no claim discount, Singapore. This tends to be 10% more of payment made to the premiums but can preserve the claim of 50% status despite a specific claim.
Though this NCD Protector costs an additional 10% in the premium, you save on years taken to accumulate the no claim discount, Singapore in case of any accident. The term ‘accident’ means an unexpected incident which leads to undesirable results. This is definitely unpredictable and can happen anytime to anyone.
You need to be aware that this NCD protector cannot be transferred between the insurers, which means the no claim discount tends to return to 20% or 0% after you have made a claim but have decided to switch insurers.
Is NCD Transferable?
As mentioned, the no claim discount, Singapore applies to the individual and not the vehicle. Buying a new car after selling the old one can help you retain the NCD but in case you have more than one vehicle, you require a separate NCD for each vehicle. Detailed information needs to be taken from the specific insurer.
*No claim discount, Singapore can be transferred when you switch from one insurer to another.
*This can also be applied to another vehicle but you need to know that this is applied to only one vehicle and for every other one you own, the NCD will be different.
How the NCD can get affected:
If a claim is made to the insurer and paid by the insurer the no claim discount, Singapore tends to reduce by a period of two years. In case you have NCD of eight years and you make a claim, theoretically you will be left with six years of NCD. But this is not so, if the insurer tends to take the industry standards into consideration of the NCD of 5 years to the maximum, you are left with three years of the no claim discount, Singapore. If a second claim is made under these circumstances you tend to lose out totally on the NCD.
In case the accident occurred due to no fault of yours, the insurer makes an effort for recovering the costs from the other driver. This can help in the NCD not getting affected at all.
In case the accident was due to no fault of either driver the insurers can split the costs of the specific claim and the NCD of both the drivers is affected.
In case of vandalism, theft or damage to the car the insurer is unable to help you in any way and the no claim discount, Singapore is affected.
Small Claims and Big Loss:
It is important to go for analysis of cost-benefit before you opt for a claim for any minor damage to the car. The no claim discount, Singapore tends to revert back to zero with every claim, be it big or small. Small claims need not be considered so that you can save more from the direct discount on the premium of the subsequent year.
Exchanging NCD between Cars:
In case of buying a second car which is an expensive luxury car, after the first reasonably priced car you need to be aware that he premium on the luxury car is definitely higher as compared to the premium on the first reasonably priced car. To save the cost you have the option of exchanging the no claim discount, Singapore on both the cars so that you have almost 50% NCD on the luxury, expensive car and the reasonably priced car will have a NCD of 0%.
If this works out for you there is a large amount of funds you can save on.
Information of the NCD from the Insurer:
Before you opt for the no claim discount, Singapore from a specific insurer you need to ensure you have detailed information on the factors listed below.
*The amount of the Premium to be paid.
*The excess (for the other drivers and the insured, un-named or even named).
*If any restrictions apply to the drivers.
*The events or risks which are covered and for the time covered.
*Restriction on where the repairs can be done.
*Reporting of any special accidents and the procedures of the claims.
*Exclusions which are non-standard
*The policy of refund and cancellation by the specific insurer.
The insurer needs to clarify the detailed information on the key terms of the contract and other obligations with a specific policy.
Information provided to the Insurer:
The insurer requires specific information from the owner of the vehicle to assist in setting the premium for the no claim discount, Singapore. In case the questions are not answered truthfully there are chances that the policy be void. Some questions frequently asked are listed below.
*Information on any claims made recently
*Any motor accidents in the recent past
*Being charged for a driving offence or receiving a summon of traffic.
*Any modification to the vehicle
*What is the vehicle used for
*The period of time the individual has been driving
*The person who will drive the vehicle
*Any disabilities or medical conditions that can affect the driving.
The Pricing of the Premium:
Most of the insurers adapt the ‘rating system of the risk factor’. These are not only the price paid for the vehicle or the value of the vehicle. Listed below are few of the risk factors considered before the setting of the premium for the no claim discount, Singapore.
*Profile of the Vehicle
*Profile of the Driver/Insured
*Type of the cover
*What is the vehicle used for (Corporate use/commercial use/private use).
*History of the claims
*You might be charged a premium on the higher side if there is an impending claim. You have the option of requesting for the specific refund if you can prove that the impending claim is not your liability.
It is not essential that the factors of risk have any influence on the premium size. Each of the risk factor is given a weighting which is based on different statistics and information on the claims of the past.
Importance of NCD:
Before you opt for the no claims discount, Singapore, it is wiser to understand the many reasons why you need to opt for this.
NCD or the no claim discount, Singapore provides great savings. As known, motor insurance is considered to be essential and is definitely a costly affair. This works out expensive also due to the road tax included. With the NCD you can plan on saving almost 50% of the premiums to be paid. This is only if you drive carefully sans any untoward accidents.
The NCD not only saves on premiums but also works as an encouragement for the owners of cars to opt for the required insurance. Car owners need to carefully consider when making a claim as this can lead to losing out on the no claim discount, Singapore.
In case of an accident for no fault of your, you can plan on making a claim with a third party insurance. This is one way which can help you not to lose out on the NCD as you file the claim with a third party policy.
The only way you can ensure your no claim discount, Singapore is not affected is by making a claim if the accident is not your fault. In case of having a windshield cover along with the required insurance, this cover can pay off any replacement or repair charges without the NCD getting affected. You lose out on the no claim discount, Singapore only if you make a claim without this add-on of the windshield cover.