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All About No Claims Discount (NCD)

Your quick and easy guide to No Claims Discount (NCD) for your motorbike.

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All About No Claims Discount (NCD)

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

Provided you have been insured with Budget Direct Insurance 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 wholly not liable for the accident as determined by us, 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 NCD
One year 10%
Two years 20%
Three years 30%


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

Current NCD NCD after 1 claim
20% 0%
15% 0%
10% and under 0%


Your NCD will be reduced to 0% after an “at-fault” claim is made under your policy in a policy term. If you fail to report an incident within 24 hours of the incident or the next working day, leading to a claim on your policy, we will reduce your NCD upon renewal as follows:

Current NCD NCD after late reporting
20% 0%
15% 0%
10% 0%
0% 0%

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

Your NCD entitlement is non-transferable to another person.

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

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


NCD Protector explained.

If you have 20% 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 “at-fault” 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 entitlement on renewal of your Policy
One 20%
Two 0%
Three or more 0%

  • 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.


Your NCD questions answered.

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

No, you are not entitled to NCD.

However, if you have been riding a company motorbike and you then buy a personal motorbike, 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, 8am to 8pm , Mondays to Fridays and 9am to 3pm on Saturdays (excluding public holidays).

I have a motorbike registered under commercial / company use and I would like to change it to personal use. Can I transfer my NCD from my commercial bike to my private one?

Yes, you would be allowed to transfer your NCD. You’ll need a letter from the HR department stating the number of claim-free years you have had with the bike.

Can I transfer my NCD from my car to my motorbike?

NCD 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, 8am to 8pm, Mondays to Fridays and 9am to 3pm on Saturdays (excluding public holidays).

I have 20% NCD from my current insurer, can it be transferred to the policy I'm about to get from you?

Your current NCD (0-20%) 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 20% NCD has not been reduced to 0% because of the NCD Protector, you would have to declare your NCD to be 0% 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, 8am to 8pm, Mondays to Fridays and 9am to 3pm on Saturdays (excluding public holidays).

I am a foreigner living in Singapore and have a 20% 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.