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All about No Claim Discount (NCD) For Car Insurance

Your quick and easy guide to No Claim Discount (NCD) for your car.

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All About No Claim Discount (NCD) for cars

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No Claim Discount (NCD) or No Claim Bonus (NCB) is a discount on your car insurance premium. It’s based on how long you’ve been driving and your claims record. As you accumulate more years of driving without making a claim, you receive a discount on the full-priced premium.

Provided you have been insured with us for the last 12 months and if you do not have any accident(s) reported or made any claim(s) under your policy OR if you have made a claim and are not liable for the accident, we will give you a discount off your premium on the following scale when you renew your policy with us:

Number of claim-free years


One year


Two years


Three years


Four years


Five or more years


Your NCD will be shown on the Policy Schedule and/or Certificate of Insurance. However, if there is a claim made under your policy, we will reduce your NCD as follows:

Current NCD

NCD after 1 claim





30% and under


Your NCD will be reduced to 0% when 2 (or more) claims are received under your policy in a policy term. Failure to report an incident leading to a claim on your policy within 24 hours of the incident or the next working day, may result in us reducing your NCD by an extra 10%.

However, your NCD will not be affected if:

  • a claim is for windscreen or window repair or replacement only; or
  • your car is involved in a wholly no-fault accident with another vehicle.
  • You purchase our NCD Protector as an Optional Cover when buying your policy, subject to the terms as described under 'NCD Protector Explained'.

Your NCD entitlement is non-transferable to another person.

If you sell your car and buy another one and continue to maintain a car insurance policy with us, you will be entitled to retain your NCD for the new policy. If, however, you own more than one car, you will need to earn the NCD for each car. In such cases, we will advise you on the NCD under each car policy. 

For example: You've sold your current car and purchased another. You can transfer your existing NCD from your old car to the new car. If you bought a second car, you can decide which car will benefit from the NCD you've earned on your first car.

NCD Protector explained.

If you have 30% NCD or more, you can choose to protect your NCD under our Optional Cover. Simply select NCD Protector under our Optional Covers and your NCD will be protected when you make up to one claim under your policy and if you renew with us

Refer to the table below for more details on this Optional Cover

No. of claims made during Policy Term*

NCD at commencement of Policy Term is 30%

NCD at commencement of Policy Term is 40%

NCD at commencement of Policy Term is 50%









Three or more




  • Includes cases where an incident occurs during the Policy Term but the claim is made after the Policy Term has expired.

Unlike NCD, please note that any protected NCD (under an NCD Protector benefit) is not transferable from one insurer to another. 

Also, you cannot transfer your NCD from a commercial vehicle to a private car.

If you don't have our "NCD Protector"

In the event of an accident, your No Claim Discount will be reduced as described in the table below. Please declare the NCD according to your situation:

Without the optional ‘NCD Protection’ cover

Your current
No Claim Discount

Your reduced No Claim Discount

if you make 1 'at-fault' claim

if you make 2 or more 'at-fault' claims







NCD0 - NCD30



Your NCD questions answered.

I have been driving as a Named Driver on someone else’s policy can I get NCD?

No, you are not entitled to NCD.

However, if you have been driving a company car and you then buy a personal car, you would be allowed to transfer the NCD provided you can show the number of claims' free years you have with a letter from the HR department of your employer or from the leasing company.

If you are unsure of your NCD level, please state 0% or give us a call at 6221 2111. Mondays to Fridays, 9am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).

I have a vehicle registered under commercial use and I would like to change it to personal use. Can I transfer my NCD from my commercial vehicle to my private car?

No, as is industry practice your NCD can only be transferred within the same vehicle type. 

(NCD also cannot be transferred from one vehicle class to another. For example, you cannot transfer your Motorcycle’s 20% NCD to your Car or vice versa.)

If you are unsure of your NCD level, please state 0% or give us a call at 6221 2111. Mondays to Fridays, 9am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).

I have 50% NCD from my current insurer, can it be transferred to the policy I'm about to get from you?

Your current NCD (0-50%) is transferable to your new policy with Budget Direct Insurance. But do note that any protected NCD (NCD Protector) is not transferable from one insurer to another.

If you have been involved in an at-fault accident/ claim and your 50% NCD has not been reduced to 20% because of the NCD Protector, you would have to declare your NCD to be 20% when you switch over to us.

If you are unsure of your renewal NCD level when getting a quote online from us, please state 0% or give us a call at 6221 2111. Mondays to Fridays, 9am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).

I am a foreigner living in Singapore and have a 50% NCD from overseas. Can it be transferred to the policy I'm about to get from you?

As a foreigner/expatriate living in Singapore, you may be entitled to an NCD, if you can provide a letter from your last insurance company overseas stating that you've been insured with them and the number of "claim-free" years.

What is a Certificate of Merit and how does this work with my NCD?

Safe drivers may qualify for a Certificate of Merit “COM” from the Singapore Traffic Police if you have a demerit-point-free driving record for three continuous years.

If you are eligible you will be entitled to an additional discount, often called “Offence Free Discount” on your car insurance premium on top of your NCD. 

To check if you qualify for the COM, log into EDDIES (the Electronic Driver Data Information and Enquiry System) through the Singapore Police Force website with your NRIC/FIN or SingPass.