What You Need to Know About No-Claims Discount (NCD)

When it comes to the world of insurance, there are myriad forms of jargon that may confuse many of those who intend to undertake the policy, and these factors can prove to be costly to many owners.

Lacking the proper information or knowledge, an individual may pay more than what they initially intended to for similar, if not the same, coverage.

When you own a vehicle in Singapore, there are multiple methods by which you can cut back on the expenditure of running it. The crucial part of it is claiming ownership of your cars, and the initial and critical thing is coming to understand your motor insurance.

India International Insurance fully understands that, and we are here to help you make informed decisions when it comes to taking up anextensive understanding of your comprehensive motor insurance policy. This article discusses an often-misunderstood motor insurance term: the NCD or the No-Claims Discount.

What is NCD for when it comes to motor insurance?

An NCD is a discount or rebate that the owner of the policy earns if one does not acquiesce to any claims during the course of their policy, which usually lasts for a period of 12 months. It could range somewhere between 10-50%.

What can I do to earn the NCD on my motor insurance?

To receive your NCD is relatively simple. You would have to have coverage for the entire term of your policy, and if you do not violate the conditions, you will be in line to receive the NCD kickback for the following year. After five years, you will be able to get a substantially larger NCD.

If I were to be involved in an accident, would I lose my NCD?

There is a huge misconception when it comes to this topic. Let us alleviate your concerns by stating that you will not be liable to lose your NCD if an accident is not of your doing or was your fault. So no, you might not lose your NCD if you were to be involved in an accident.

Are there any ways to ensure that I do not lose my NCD?

Even if you make a claim, you will not immediately lose your NCD as insurance companies like us at India International Insurance have many plans to stop you from completely losing your NCD.

NCD protectors shield the policyholder from submitting a claim that prevents you from losing your NCD entirely and will not be detrimental to your ability to submit subsequent claims. One of these plans is the NCD protector, which generally allows you as the policyholder to submit a claim without completely losing your NCD.

The validity of an NCD is often misconstrued, and a source of concern to most policyholders is entirely understandable. Hence, India International Insurance are fully committed to further explain to you the caveats of the policy that you are thinking of undertaking when it comes to you getting the best possible plan when obtaining your motor insurance policy.

Conclusion

Whilst the law in Singapore requires one to possess a motor insurance policy, it will be prudent for you, as the consumer, to make the best possible decision to get the best bang for your buck. Feel free to contact us today to navigate the myriad of car insurance plans available.