Car Hacks / Lifestyle

No Claims Discount: What Is NCD & How To Claim It

Being a good driver has its perks and rewards. You may have noticed the term ‘No Claims Discount’ (NCD) in your motor insurance plan and wondered what an NCD is. More importantly, you may be wondering how you can claim your NCD. In this article, we guide you through reaping the rewards of being a safe and commendable driver.

What is a ‘No Claims Discount’ (NCD)

An NCD is an entitlement that is given to drivers who have not made any claim under their insurance policy for at least a year. You can think of it as a reward for being a careful driver for every year that you are with your insurer.

(Related Story: The Ultimate Insurance Guide)


Every time you choose to renew your insurance with an insurer, you will receive a discount on your insurance plan should you be awarded your NCD. Discount rates are standardised across all motor insurance providers, as shown below:

Private Car Policies Period of insurance with no claim Discount on renewal
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%


Thankfully, that is not always the case! If you have been with your insurer for long enough, you may still get some of your NCD if you have an NCD Protector. It is an add-on to your base insurance plan, and protects you for one claim. However, it is likely that they will reduce your discount. The reduced rates are as follows:

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

Should you make more than one claim within a policy year, it will be reduced to 0%.


Yes, it is! However, do note the following on what the transfer applies to.

You can transfer your NCD:

  • To your spouse under the same insurer (depending on your insurers’ terms & conditions)
  • From your old insurer to a new insurer
  • To another private vehicle under the same owner

You cannot transfer your NCD to:

  • any other persons
  • another type of vehicle
  • be used across different vehicles at once

How to claim your NCD

Luckily, there is nothing that you need to do in order to enjoy your discount! It will be automatically applied once you renew your insurance plan. You can always call up your insurer if you have any inquiries about your current rates.

As a final piece of advice, do remember to shop carefully when buying an insurance policy! While NCD is standardised across the industry, the annual premiums are not. Some insurance companies have add-ons included, so do think through whether you need the extras before settling on your plan.

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