In Singapore, a driver who has purchased a Car Insurance for his car has 0% NCD during the first year of coverage. He has to pay for the full premium. If there isn’t any claim to his policy, he enjoys a 10% discount (NCD) from his base premium on 2nd year, 20% NCD on 3rd year, 30% NCD on 4th year, and so forth. This continues till the driver reaches a maximum NCD of 50% on the 6th year of insurance coverage with no claim made throughout the 6 years.
When a claim happens, the NCD will be reduced by 30% for each and every claim of your fault. For example, a driver who enjoys 50% NCD in 2017 met with an accident of his fault and he claimed against his own policy, he will only enjoy 20% NCD in 2018. He gets 30% NCD in 2019 only when he does not have a claim in his policy in 2018. In addition, his base premium will be higher than before due to the loading of premium in view of the undesirable profile/claims involved. The vehicle insurance claim history stays with the car owner for a period no less than 3 years.
On the other hand, commercial vehicles such as van, lorry, truck, tipper which includes company registered cars i.e. Z10 policy which commonly refer to Uber/Grab Insurance, has a different NCD allocation as shown below: