No Claim Discount (NCD)
If no claim has been made under your policy for a year or more, you are entitled to a No Claim Discount (NCD). The NCD reduces the premium payable for the following year.
The table below shows how AIG sets the NCD, which is consistent with industry best practices:
Private car policies |
Commercial vehicle and motorcycle policies |
||
Period of insurance with no claim |
Discount on renewal |
Period of insurance with no claim |
Discount on renewal |
One year |
10% |
One year |
10% |
Two years |
20% |
Two years |
15% |
Three years |
30% |
Three years or longer |
20% |
Four years |
40% |
- |
- |
| Five years or longer | 50% | - | |
No Claim Discount Protector (“NCDP”)
With our optional NCDP add-on, your first claim during the policy year will not reduce your NCD subject that your NCD is 50% at the time a claim is made. The NCDP will therefore apply as follows:
Number of Claims made or arisen during the current period of insurance
|
NCD entitlement on renewal of Policy |
| One | 50% |
| Two | 20% |
| Three or more | Nil |
NCD that is protected under the NCDP Benefit is not transferable to any other insurer and does not guarantee renewal of the Policy.
Adjustments to your NCD
If there is a claim made under the policy, your NCD will be reduced as follows:
Private car policies |
Commercial vehicle and motorcycle policies |
||
Current NCD |
NCD after one claim during your policy period |
Current NCD |
NCD after one claim during your policy period |
50% |
20% |
20% |
0% |
40% |
10% |
15% |
|
30% and under |
0% |
10% |
|
You are required to report all car accidents promptly by the end of the next working day to avoid a reduction in your NCD.
For not reporting an accident within 24 hours of the occurrence or by the next working day, the NCD will be affected as follows:
Private car policies |
Commercial vehicle and motorcycle policies |
||
Current NCD |
At renewal |
Current NCD |
At renewal |
50% |
40% |
20% |
15% |
40% |
30% |
15% |
10% |
30% |
20% |
10% |
0% |
20% |
10% |
0% |
0% |
10% |
0% |
- |
- |
0% |
0% |
- |
- |
The accident NCD is to be applied first before the Non-Reporting NCD.