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Everything a rider needs to know regarding NCD for Bikes & Cars


If you have ever signed up for motor insurance in Singapore, you have certainly come across the term ‘No Claim Discountor NCD. So, what does it mean and how can you avail of it? In this blog post, we will answer some of your questions regarding this very beneficial discount.

1. What is a ‘No Claim Discount’?

A NCD is essentially a discount on your car and motorcycle insurance premium. This discount is available for those who haven’t made any claims on their policy within the current period of their insurance.

2. How much of a discount can you get?

For DirectAsia car insurance, your NCD depends on the number of consecutive years you have driven without getting into an accident. See the table below to see the corresponding discount.

No Claim Discount (Car Insurance)
Number Of Years Without Claims (on a consecutive basis) No Claim Discount
One year 10%
Two years 20%
Three years 30%
Four years 40%
Five years or more 50%


3. Is NCD applicable for motorcycle insurance too?

The NCD also applies to motorcycle insurance in Singapore. If you have comprehensive motorcycle with DirectAsia, here are the NCDs you can expect.

No Claims Discount (Motorcycle Insurance)
Number Of Years Without Claims (on a consecutive basis) No Claim Discount
One year 10%
Two years 15%
Three years or more 20%

4. Does the NCD apply to me or my vehicle?

Your NCD applies to you and it is not transferable to another person. But if you sell your vehicle and you buy another one, you can transfer your NCD from one car to another. However, if you are a named driver on someone else’s insurance policy, you will not be entitled to an NCD.

5. Will I lose my NCD if I get into an accident?

It would depend on your current NCD and whether or not you have our optional benefit of NCD protection.


If you have a 40% or 50% NCD and no protection, you can expect a significant reduction to your NCD with one fault claim. For those with a 50% NCD, their NCD will be reduced to 20%. For those with a 40% NCD, their NCD will be reduced to 10%. A second fault claim will result in losing your NCD. If you have an unprotected NCD of 30% and below, then it will also result in losing your No Claim Discount should you make a fault claim. Find out more about DirectAsia's NCD policy here.


If you get into an accident without protection for your NCD, it will result in losing your No Claim Discount.

*These measures are only applicable if the accident is your fault.

6. How can I protect my NCD?

You can purchase additional protection to avoid a reduction of your NCD.


Under this protection, with a 50% discount you can claim once without a reduction of your current discount. Should you make a second fault claim, your reduced NCD will be 20%. However, on your third fault claim you void your NCD.

If you want to cut down on your insurance cost, make sure you drive safely to ensure that you can avail of the No Claim Discount. Whether you are driving a brand new car or a 200cc bike, it is important to remain vigilant on the road. To learn more about DirectAsia Insurance’s NCD policies, you can read about it here.

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