All about NCD, Insurance Excess and Named Driver

Car insurance is compulsory for cars to be driven on the road in Singapore. The insurance cover the car owner and named drivers (if any). When an accident happens, a car owner would be able to make a claim to avoid spending huge amount of money on repairs. Most insurance would require car owner to pay an insurance excess amount whenever there is a claim. If the car owner did not make any claim over a certain period of time, insurance company reward him/her with NCD. In this article, we have consolidated some frequently asked questions about NCD, insurance excess and named driver(s). Read on to find out more about each term.


What is NCD?

NCD or No-Claim Discount, is a discount offered by car insurers for car owners who have not made any claims within a year or more. The following table illustrate the amount of NCD rewarded for private cars according to insurance period without claim:

Insurance Period Without Claim Renewal Discount
1 year 10 percent
2 years 20 percent
3 years 30 percent
4 years 40 percent
5 years or more 50 percent


Will I lose my NCD when I make a claim?

It depends. All insurers in Singapore refer to the Barometer of Liability Agreement (BOLA) to determine how much each party is liable in an accident. Under BOLA, your NCD may be affected if your liability is more than 20%. The exact amount of NCD affected from a claim varies between different insurance company. It is best to check with your insurance company on the exact reduction amount.


Does the NCD apply to me, or to my car?

Your NCD applies to you, not your car. Thus, it can be retained if you change a new car as you are allowed to transfer from one car to another. However, your NCD can only be applied to one car at any one time. If you own more than one car, NCD for each car varies. In other words, you would have to accumulate NCD for each vehicle separately even though the cars are under the same owner.


Will I lose my NCD if I don’t get a replacement car immediately after I sell or scrap my current car?

Insurers in Singapore allows you to retain your NCD for a period of time. Some of them allow you to retain for up to 12 months while others allow up to 24 months. Contact your insurer for more details.


What is motor insurance excess?

Excess is the amount of money an insured driver need to pay when a claim is made on the insurance policy. If the insured driver has an excess of $500 and the total repair cost is $3000, then the insured has to pay $500 and the insurer will pay the remaining $2500.


What is a named driver?

A named driver is someone who can drive the car with the owner’s permission. He/she is fully covered by the owner’s insurance policy. Normally there will be additional cost for adding multiple named drivers.


Is it important to list other drivers under named driver?

It is important as named driver enjoy the same privilege as the car owner including amount of excess on claims. If an unnamed driver gets into an accident, the insurance company may impose higher excess on the claim.


Will I be accumulating NCD if I’m driving as a named driver on someone else policy?

No, named driver will not be entitled to accumulate NCD.


How can I get the best motor insurance quotation?

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