How NCD works ?

NCD stand for Non-claim-discount ,which means a discount awarded to a vehicle insurance who never made any claim.It count by within the past 12 months coverage before renew.

For the 1st year of purchasing insurance,there is no discount.Started from the 2nd year,if there’s non claim within the past 12 month coverage,a first discount will be given.

Is That All Kind Vehicle Have Same NCD Discount Rate?

Nope.The non-claim-discount can be categorized into 2 category,which are:

1.Personal Vehicle

2.Commercial Vehicle

Personal Vehicle NCD Rate
Commercial Vehicle NCD Rate

How NCD Counts?

The maximum discount for personal use vehicle is up to the 6th year which is 55%.Therefore,in the 7th,8th or the following year,they can only enjoy up to 55% discount in the future.It doesn’t matter the vehicle owner never make any claim.

Nevertheless,once the owner make a claim, the NCD discount accumulated will burnt to zero,and recounting.First 25% discount given on the second renewal if there’s non claim in the new 12 months of coverage, and so on.

In the same way,rules for commercial vehicle are just same as above.In short, the only difference are the discount rate.

(Please refer to the picture above for rate of different kind vehicle NCD.)

How NCD Works In Accident Case?

In some accident case,the wrong party will be requested to claim their insurance by opponent’s for car repair.Therefore,they can repair their car without paid by themselves,or affected their own car NCD .In fact,they are no fault in that case.Otherwise some of them “settle”by themselves without go legal process.

While in case the opponent request to claim the wrong party car insurance,insurance claiming must go through police report process.In this case,the wrong party whom insurance had been claimed will also burnt the NCD accumulated.

Sometimes People Ask: How NCD Effected If I Claim Insurance For Windscreen?

While buying car insurance,you can additional add on windscreen insurance.In case someday your windscreen cracked, you can claim it without affect NCD.

Read also:

Chinese version

Transfer NCD To Other Car