NCD=No Claim Discount means a discount given to the policyholders upon renewal of their motor insurance if no claim is made or arises from the policy for a continuous coverage of 12 months.
If you were never involved in any accident nor were there any claims made to your car insurance, these are the discount rates you will enjoy.
Private Car 1st year - 0% (buying a vehicle for the first time, you will not have NCD on your motor policy for the first year on the road. )
after 1st year - 25%
2nd year - 30%
3rd year - 38.33%
4th year - 45%
5th year - 55%
5th year onward- 55%
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Commercial Vechicle1st year - 0%
2nd year - 15%
3rd year - 20%
4th year - 25%
5th year onward- 25%
NCD attached to the person (not car) and not transferable.NCD follows the owner but it is only applicable for 1 policy.
You can transfer my NCD from one vehicle to another. This typically happens when you have sold your old vehicle and want to transfer your NCD to the vehicle you are purchasing. If you do not transfer your NCD to another vehicle, your NCD entitlement level will drop one level each year. For example, if your NCD entitlement is 55% this year, it will drop to 45% next year, if it is not transferred to another vehicle. This will continue until the NCD level reaches 0%.