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NCD is not the real discount

Pelican

By Pelican,
in General Car Discussion

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Blackyv

Blackyv

Turbocharged

Just go to Aviva and directasia online application, fill up everything the same except ncd and you will know how much discount they give...

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1fast1

1fast1

Supersonic
(edited)

I am looking around for insurance quote. I saw the following at ocbc car insurance.

 

http://www.ocbc.com.sg/personal-banking/in...s_AutoWise.shtm

 

The chart stated

 

NCD 50% will have 15% off premiums

NCD 30–40% will have 10% off premiums

NCD 10–20% will have 5% off premiums

 

So ... NCD % discount is not the real discount % off the premium which i always thought it is.

No wonder having 50% NCD the premium is still expensive because it only translate to 15% real discount.

 

Or for this case, it is additional discount on top of NCD discount ??

 

This makes absolutely no sense because NCD is supposed to be a discount off the base premium.

 

The base premium is calculated based on their actuarial tables taking into account driver characteristics (age, driving experience, gender, profession) and vehicle characteristics (type, power, forced induction, colour, previous claims of that make/model). Then the NCD is applied. So if the base premium is $2k, the premium after 50% NCD is $1k.

 

At least, this was my understanding.

Edited by Turboflat4
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Jetabout777

Jetabout777

1st Gear
(edited)

I am due for renewal of car insurance soon so I went back to my current insurer, DirectAsia, for a quote.

 

Surprisingly, they quoted me approximately $1.2k more than what I am paying for my current insurance. That's a whopping 85% increase in premium. On top of that, as I have made no claims with regards to this policy, I am entitled to a further 10% NCD. No incidents were reported which resulted in private settlements as well.

 

However, as I went on a holiday most recently, I got DirectAsia as my travel insurer. There was a baggage delay issue and a claim of almost $1k was approved.

 

Issue here is, I don't understand why my car insurance premium has shot up so high despite no claims being made. I am starting to suspect that this increase in car insurance premium has something to do with the travel insurance claim made.

 

Can anyone in the know verify this kind of practice? Thanks. [:(]

Edited by Jetabout777
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Mahjong74

Mahjong74

Supercharged

I think they will have quite abit of business as I notice they have installment plans which most insurance companies do not provide.

 

Most insurance companies do tied up with various banks to offer interest free installment plans.

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Atlantis80

Atlantis80

1st Gear

I am due for renewal of car insurance soon so I went back to my current insurer, DirectAsia, for a quote.

 

Surprisingly, they quoted me approximately $1.2k more than what I am paying for my current insurance. That's a whopping 85% increase in premium. On top of that, as I have made no claims with regards to this policy, I am entitled to a further 10% NCD. No incidents were reported which resulted in private settlements as well.

 

However, as I went on a holiday most recently, I got DirectAsia as my travel insurer. There was a baggage delay issue and a claim of almost $1k was approved.

 

Issue here is, I don't understand why my car insurance premium has shot up so high despite no claims being made. I am starting to suspect that this increase in car insurance premium has something to do with the travel insurance claim made.

 

Can anyone in the know verify this kind of practice? Thanks. [:(]

 

If they are quoting you a higher premium for your motor insurance due to your claim made on travel insurance, aren't they turning your business away with such a sudden spike in the motor insurance premium?

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Ender

Ender

Hypersonic

Don't know about OCBC, HCBS insurance should be real. Once HSBC gave with a quote with 10% NCD off the premium, when I suppose to get 20% NCD. After clairification about the 20%, the new quote reflects exactly 20% discount of the premium compare to the 1st quote.

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Jetabout777

Jetabout777

1st Gear
(edited)

If they are quoting you a higher premium for your motor insurance due to your claim made on travel insurance, aren't they turning your business away with such a sudden spike in the motor insurance premium?

 

Yes, they might be turning my business away based on their assessment that I am a high risk individual due to my travel insurance claim, which in my opinion is irrelevant to my motor insurance.

 

It is a known fact that DirectAsia is somewhat selective in their business in order to keep premiums low.

Edited by Jetabout777
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Directasia

Directasia

1st Gear

I am due for renewal of car insurance soon so I went back to my current insurer, DirectAsia, for a quote.

 

Surprisingly, they quoted me approximately $1.2k more than what I am paying for my current insurance. That's a whopping 85% increase in premium. On top of that, as I have made no claims with regards to this policy, I am entitled to a further 10% NCD. No incidents were reported which resulted in private settlements as well.

 

However, as I went on a holiday most recently, I got DirectAsia as my travel insurer. There was a baggage delay issue and a claim of almost $1k was approved.

 

Issue here is, I don't understand why my car insurance premium has shot up so high despite no claims being made. I am starting to suspect that this increase in car insurance premium has something to do with the travel insurance claim made.

 

Can anyone in the know verify this kind of practice? Thanks. [:(]

Hi Jetabout777, it absolutely isn't the case that your car insurance premium could go up because of your travel insurance history. These are entirely independent and have no influence at all on each each other.

 

Would you kindly send me your details so that I can get our team to take a look for you? The figures you quote sound surprising to me ... please let us take a look. Many thanks in advance ...

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