A No-Claim Discount is awarded annually by your insurer if you have not made any claim on your existing car insurance policy.

This is your insurer's way of recognising you for having been a careful driver.

While this is generally common information to most people, there may still be some details that are not as well known.

We've laid out the most important ones here for you.

1. How your No-Claim Discount works

The discounted percentage corresponds to the number of years the car owner has not made any claims from the insurance company.

So as long as you don't make any claims in the first year of driving, you will earn your first 10% off your next renewal premium.  

The following year it increases to 20% – and so on until it reaches a cap of 50%.


2. NCD applies to you, not your vehicle

Your No-Claim Discount is earned on a "per car" basis. So if you have 50% NCD on Car A and then buy an additional car, you'll have 0% NCD on that second vehicle.

Another scenario: you have 50% NCD on Car A and sell it to buy Car B. You'll still keep that 50% NCD on the new car. 


3. The percentage reduction for your NCD depends on your insurer

The market practice is to impose a 30% reduction for each and every "at fault" claim.

Singlife makes only a 10% reduction for the same*. When your NCD is reduced, you will end up paying a higher premium than the previous year. 

*Excluding the Motor Lite Plan.


4. Making a claim does not mean you automatically lose your NCD

If your insurer confirms that you're not at fault, you will not lose your NCD. But if you're at fault, your NCD may be reduced for every claim made. 


5. You can protect your NCD

There are two ways to do it:

  • You can pay back the claim amount that your insurer has paid on your behalf.

  • You can buy an NCD protector so that your NCD can be protected for one claim. If you make more than one claim, your NCD will then be reduced according to each insurer's rate.

In general, about 1 in 3 Singlife car insurance customers get an NCD protector.

6. What happens if you don’t have an NCD protector?

You lose your NCD. As mentioned, most insurers will impose a 30% reduction on your NCD for each and every claim.

Earning back this 30% on your NCD will require a 3-year claims-free period. 

Now that you know how an NCD works, you might want to consider protecting yours when you renew your car insurance or by adding it on as a rider.

Find out more about our car insurance plans today

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The content of the blog – LifeStuff is published for general information only and does not have regard to the specific investment objectives, financial situation, and particular needs of any specific person. The objective of this blog is merely for educational purposes and is not intended to serve as legal, tax, investment or accounting advice and nothing contained here shall constitute a distribution, an offer to sell or the solicitation of an offer to buy. Accordingly, no warranty whatsoever is given, and no liability whatsoever will be accepted by Singapore Life Ltd for any loss arising whether directly or indirectly as a result from you acting based on this information.


You may wish to seek advice from a financial adviser representative before making a commitment to purchase the products. If you choose not to seek advice from a financial adviser representative, you should consider whether the product in question is suitable for you. The polices are protected under the Policy Owners’ Protection Scheme, and administered by the Singapore Deposit Insurance Corporation (SDIC). For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the LIA or SDIC websites (www.lia.org.sg or www.sdic.org.sg).