Tuesday, October 06, 2015

No Claim Discount on motor insurance

Mr. Tan
I parked my car on the road side and found that it was knocked the next morning. I submitted a claim to my insurer to repair the damages. They wanted to take away my No Claim Discount. Is it fair? This is not my fault.

The No Claim Discount is given by the insurer if the policyholder does not make a claim during the previous year. When you make a claim, regardless of who is at fault, you lose the No Claim Discount.

Actually, you do not lose it entirely. If your discount is more than 30% for the current year, it will be reduced by 30% the following year, so you still get a reduced discount.

Some insurance companies allow the policyholder to keep the discount if they can the third party insurer who agrees to pay for the repair. But, this is not a common practice.

Your case can be described as "hit and run". The other car hit your car and ran away. You are not able to trace the party at fault.

Some policyholders were involved in an accident, e.g. they hit a road curb or lamp post while being drunk. They drove back and reported a "hit and run" case the following day. The claim assessor may doubt the accident report submitted by the policyholder. This is why the NCD is taken away.

1 comment:

Anonymous said...

Insurance companies are in business to make money and they are NOT charities. Don't beleive them that they are doing you a favour. Is this proof that they try as best not to pay you and to take away your benefits as soon as there is an excuse?
No trouble when you buy an insurance and trouble comes when the claims come.

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