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NCD & Certificate of Merit

Offence Free Discounts Explained

No Claim Discount & Certificate of Merit

A No Claim Discount (NCD) is a discount on your premium if you haven't made any claims on your policy during the current period of insurance. You may still be entitled to a No Claim Discount even if you have made a claim, provided you are not liable for the accident.

If you hold a Certificate of Merit (COM) from Singapore Police Force, this will entitle you to an additional 'Offence Free' discount on your vehicle insurance premium. This Offence Free discount is over and above your No-Claim Discount (NCD). You are eligible for a COM if you have maintained a demerit-point-free driving record for the past 3 years.

Read more below about how our Offence Free Discounts work and to see if you qualify

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More About Certificate of Merit

How do I find out if I am eligible for Certificate of Merit (COM)?

Visit the Singapore Police Force Site 

Login with either your Singpass or NRIC number and the system will validate your information and display the details of the COM.

 

About NCD

  • If you have been driving as a Named driver on somebody else's policy,
    you are NOT entitled to any NCD.
  • If you have been driving a company car and you then buy a personal car,
    you would be allowed to transfer the NCD if you can show the number of "claim-free" years you have with a letter from the HR department of your employer or from the leasing company, if the car is leased.
  • If you are a foreigner / expatriate living in Singapore,
    you may be entitled to a NCD, if you can provide a letter from your last insurance company stating that you've been insured over the last 12 months and the number of "claim-free" years.
 
No Claim Discount Protection
If You Haven't Claimed for: Your No Claim Discount is:
one year 10%
two consecutive years 20%
three consecutive years 30%
four consecutive years 40%
five or more consecutive years 50%
To be entitled to this discount, you need to have been insured with DirectAsia for the past 12 months.
   

Reduction if you don't have our "NCD Protection"

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

Without the optional ‘No Claim Discount 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
50%
40%
0 - 30%
20%
10%
0%
0%
0%
0%
 

If you have our "NCD Protection" 

If you have selected our optional benefit 'No Claim Discount Protection', and maintain your car insurance policy with us, your 50% No Claim Discount will only be reduced as described in the table below:

With the optional ‘No Claim Discount protection’ cover
your current No
Claim Discount
your reduced No Claim Discount
if you make 1
at fault claim*
if you make 2
at fault claims
if you make 3
at fault claims
50% 50% 20% 0%
*If you have selected the optional 'No Claim Discount protection' cover

This NCD of 50% that is protected under our DirectAsia policy is not transferable to another insurer and also does not necessarily protect you against non-renewal or cancellation of your policy by us.

 

Transfer of your NCD

Your No Claim Discount is not transferable to another person. However, you can transfer your NCD from one car to another.

For example: You've sold your 10 year old car and purchased a brand new one. 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.

 

If you do not report an accident

If you do not report an accident to us within 24 hours or by the next working day and/or do not provide your car to us for inspection in accordance with the terms of the Motor Claims Framework, we may reduce your No Claim Discount upon renewal of your policy by a further additional 10%.

 

If you have been a named driver on someone else's insurance, you are not entitled to any NCD.

But 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 select NCD Protection under our optional benefits then we will protect your No Claim Discount (NCD) when you make up to one claim under your policy and if you renew with us. 
A No Claim Discount is a discount that we offer you on your renewal premium if there are no claims on your policy during the current period of insurance. You may still be entitled to a No Claim Discount even if you have made a claim, provided you are not liable for the accident and that you have been insured with us for the past 12 months. Here's more details on NCD and who is eligible.

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