Report Your Motor Accident within 24 Hours to Insurer else…

From 1 June 08, all motor acci­dents have to be repor­ted to the insur­ance com­pany with­in 24 hours of occur­rence or by next work­ing day. The insurers will do the rest, from arran­ging for a replace­ment vehicle to mak­ing third-party claims. Should you fail to report promptly to your insurer, your claims may be pre­ju­diced or even declined by your insurer. There is a pen­alty of deduc­tion of 10% on the No Claim Dis­count (NCD) upon renew­al of your policy. Even if you are new driver with no NCD giv­en, you may not be awar­ded NCD in the sub­sequent years.

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Protect your NCD

Your No Claim Dis­count (NCD) for motor insur­ance will drop from 50% to 20% once you make a claim for an acci­dent? And it becomes 0% after two claims?

This, unfor­tu­nately, hap­pens to my hubby who met with an acci­dent earli­er this year. His motor insur­ance premi­um soared from $534 (after 50% NCD deduc­tion) to $918 after mak­ing a claim. He thought of chan­ging the insurer but only to dis­cov­er that it will cause him even more — up to $1500 instead.

Sur­pris­ingly, even after 10 years of driv­ing exper­i­ence, he is ignor­ant of that fact that he can pro­tect his NCD with just a small nom­in­al premi­um annu­ally (Well he should have asked me, shouldn’t he? Oh, Man!?). With the addi­tion­al pro­tec­tion, he will still enjoy 50% NCD after mak­ing an acci­dent claim, and thus the $1000 sav­ing over the next 3 years from the increase of in premi­um. The NCD will only reduce to 20%, if, touch wood, a second claim is made. So, check with your motor insurer now on pro­tect­ing your NCD.