Drivers or automobile homeowners will need to have seen the phrases NCD/NCB/No Declare Low cost of their automobile insurance coverage paperwork, however how can they get this premium low cost? What’s the calculation technique behind it? Below what circumstances can the no-claim low cost not be prolonged? The specialists at Kuaierbao offers you detailed solutions on this particular web page.
No Declare Low cost (NCD/NCB) Defined
Because the identify suggests, a no declare low cost implies that when a policyholder has not made any claims for a time frame (measured in years), the insurance coverage firm will present a corresponding share of premium low cost when renewing the coverage subsequent yr, normally 20% – 60%.
No Claims Low cost is the total identify of No Claims Low cost, which is exclusive to auto insurance coverage and has later been utilized to different insurances, reminiscent of medical insurance. No Claims Low cost and No Claims Bonus truly imply the identical factor, however insurance coverage firms now use “No Claims Low cost” extra typically to focus on the character of the low cost and keep away from policyholders misunderstanding that the insurance coverage firm will present financial rewards.
As a result of a no claims low cost can considerably cut back the annual premium for auto insurance coverage, policyholders ought to specify the quantity of no claims low cost they’ve when acquiring auto insurance coverage quotes to make sure an correct quote.
How the no declare low cost is calculated
The low cost charge for no claims low cost varies from insurance coverage firm to insurance coverage firm, however will increase yearly from 20% to a most of 60%. The calculation technique of the no-claim low cost charge for personal automobiles is barely completely different from that for bikes and commerical autos, which begin at 10% and go as much as 30%.
No Declare Low cost for Non-public Vehicles/Bikes/Industrial Autos
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12 months |
No declare low cost for personal automobiles
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No declare low cost for bikes and industrial autos
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1st yr of driving with none claims
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20% = 20% low cost on premium
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10% = 10% low cost on premium
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2nd consecutive yr of driving with none claims
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30% = 30% low cost on premium
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20% = 20% low cost on premium
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third consecutive yr of driving with none claims
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40% = 40% low cost on premium
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30% = 30% low cost on premium
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4th consecutive yr of driving with none claims
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50% = 50% low cost on premium
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30% = 30% low cost on premium
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fifth consecutive yr of driving with none claims
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30% = 30% low cost on premium
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How will claims cut back the no-claim low cost?
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Your NCD shall be reset to zero
if you renew your coverage subsequent yr within the following circumstances:
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Have NCD of 40% or much less and make 1 declare within the coverage yr
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With 50%/60% NCD and a couple of claims within the coverage yr
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Your NCD shall be deducted if you renew your coverage subsequent yr within the following conditions:
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With 50%/60% NCD, in case you make one declare in the course of the coverage yr, the insurance coverage firm will deduct a part of the NCD in line with the “low cost rebate mechanism”
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60% no claims low cost turns into 30% if you renew your coverage subsequent yr
Please keep in mind that the above no-claim low cost “low cost rebate mechanism” normally solely applies to personal automobiles. Different sorts of autos will typically lose their no-claim low cost within the following yr if there is just one declare.
Can the No Declare Low cost (NCD/NCB) be transferred?
Switch from native insurance coverage firms
If you wish to change insurance coverage firms, you solely must buy a brand new coverage inside 12 months after the previous coverage ends or is cancelled and supply related NCD supporting paperwork (such because the previous coverage), and you’ll have the chance to switch your NCD to the brand new insurance coverage firm. Nonetheless, please word that the strategy of calculating NCD might not be the identical for every insurance coverage firm.
Switch from abroad insurance coverage firms
For foreigners who’ve simply arrived in Hong Kong, the steps for transferring NCD are comparable. If you wish to get pleasure from the identical NCD with the brand new insurance coverage firm, you have to to acquire a certificates of insurance coverage out of your earlier insurance coverage firm to show that you haven’t made any claims up to now twelve months.
Switch from industrial automobile to personal automobile
You’ll be able to switch your NCD out of your firm automobile to your private automobile. You simply must acquire a consent letter for NCD switch out of your employer or their authorized consultant.
Non-transferable NCDs for various classes of autos. For instance, in case you promote your truck and purchase a motorbike, your NCD shall be reset to 0%.
Switch to a unique automobile below your identify
NCD follows folks, not automobiles. In the event you personal a number of automobiles, every may have its personal NCD, and you may switch the NCD from one automobile to a different.
To a automobile below a unique identify
NCD follows folks, not automobiles. Even in case you promote your automobile to another person, you continue to hold your NCD and the brand new purchaser is not going to get your NCD.
Switch with a named driver
In the event you primarily drive an organization automobile, or are a named driver on one other coverage, you’ll not have a no claims report in these circumstances and so will be unable to switch your NCD.
What’s NCD protection?
Some insurance coverage firms will supply No Declare Low cost Cowl (NCD Cowl) so that you can add to your insurance coverage (further cost required). After buying NCD safety, even when you’ll want to make a declare after an accident, you may nonetheless benefit from the unique NCD. Nonetheless, it’s value noting that the sort of safety is capped. You’ll be able to solely use this protection if the assessed declare quantity doesn’t exceed the cap. Additionally, NCD cowl is just not transferable to different insurance coverage firms.
Ought to I declare compensation after an accident?
Though the automobile proprietor ought to notify the insurance coverage firm or middleman and fill out the accident report inside 24 hours of the visitors accident, it’s as much as the automobile proprietor to resolve whether or not to say compensation from the insurance coverage firm.
Some drivers will weigh the professionals and cons of paying the payment privately or dropping the NCD low cost, relying on which possibility will incur much less loss. This can be a greater method in case your NCD is excessive, as you don’t need to be penny sensible and pound silly and lose out on a big premium low cost by paying to restore minor harm.
If the accident doesn’t contain any casualties and is only a minor collision, it’s possible you’ll take into account settling the matter privately with the opposite celebration and signing a Visitors Accident Settlement Settlement.
Nonetheless, if human lives are misplaced or injured, we don’t advocate that the driving force settle the matter privately, as a result of even when each events have signed a visitors accident settlement settlement, the opposite celebration might instantly change their thoughts and demand an enormous quantity of compensation from you.
