My my, honestly, what is the point of awarding safe drivers with No Claims Discounts (NCD) off their insurance premiums when there is actually no nett discount at all? I shall not name my insurer (just in case), but here’s more details about the NCD program that is adopted by insurers in Singapore. Essentially, the NCD program should help motorists, that don’t claim against their own policy, save 10% every year till a maximum of 50% off after 5 years of zero claims.
5 years ago, my insurance policy costs approximately SGD 1,000
5 years on, it still costs me approximately SGD 1,000 even though I have never claimed against my own policy. By right, I should be paying SGD 500 now. Sadly, it is not. We tried calling the insurance company to get the rationale for increasing our premium but almost the same amount as the NCD. We got a standard reply. We tried to bargain for lower rates. We, again, got a standard reply about how the rates across the whole industry are increasing.