DirectAsia recently launched Singapore’s highest No claim Discount for motorcycle, and naturally, we’ve got lots of motorcyclists excited! We’ve received lots of questions about the discounts and would like to answer some of these common questions here to help safe riders get the discount they deserve.
1. What is a No Claim Discount(NCD)?
A No Claim Discount (NCD) is a discount that we offer you on your renewal premium if there are no claims on your motorcycle policy during the current period of insurance. Currently in Singapore, the highest NCD you can get is 20% after 3 consecutive years of safe driving with no claims, but DirectAsia is now offering the highest discount rate at 30% for our safe riders!
2. What happens if I make a claim? Do I lose my NCD?
Where an accident happens, an automatic reduction in your No Claim Discount will apply. Your No Claim Discount will be reduced to 0% if one or more claims have been made by/against you during the same period of insurance.
3. What if I go for a private settlement? Will it still affect my NCD?
There are instances where motorcyclists get into an accident but may find it more worthwhile to not submit a claim, opting for a private settlement**.
** Late reporting may apply if accident reporting is not done / reported only after 24 hours from accident.
4. Is there a way for me to protect my NCD?
Your NCD will be back to 0% if any claims are made, as there is no protection benefit for motorcycle insurance NCD. We do however provide a NCD protection protector benefit for car insurance.
At present, NCD protection is not available for motorcycle insurance.
5. Is the NCD transferable?
Generally speaking, the NCD is tied to the policyholder. There are however, 3 situations where you can transfer your NCD with you:
- If you decide to change your motorcycle, you can transfer your NCD over to your next bike.
- If you have been riding a company motorcycle and wish to buy a personal motorcycle, you would be allowed to transfer the NCD. You’ll need to provide a letter from the HR department detailing the number of claim-free years you have been on the bike.
- If you are a foreigner/expatriate coming to live in Singapore wishes to transfer your NCD to your Singapore vehicle, you can provide us with a letter from your last insurance company stating that you have been insured over the last 12 months and indicating the number of “claim-free” years.
The only exception is that if you have been a named rider on someone else’s insurance, you are not entitled to any NCD.
We also allow a one-time transfer of NCD between spouse. The policyholder will be required to complete the NCD transfer form. This is a one-time transfer and cannot be reversed.
6. Is protected NCD transferable?
Protected NCD is typically not transferable to other insurers. However, you may wish to check with the other insurer.
7. My accident status is still outstanding, why is my NCD already penalised?
The nature of the accident may likely be an at-fault one, which could indicate an incoming claim.