Car Insurance
NCD

The Ways Driving Offences are Measured and Discounts Explained

 
No Claim Discount and Driving Offence Points

A No Claim Discount (NCD) is a discount on your premium if you haven'’t made any claims on your policy during the current period of insurance. You may still be entitled to a No Claim Discount even if you have made a claim, provided you are not liable for the accident.

No Claims for: your No Claim Discount is
one year 20%
two consecutive years 30%
three consecutive years 40%
four consecutive years 50%
five or more consecutive years 60%

To be entitled to this discount you need to have been insured within the last 12 months.

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Transfer of your No Claim Discount

  • If you have been a named driver on someone else’s insurance,
    you are not entitled to any NCD. We might, at our discretion, offer you a special price subject to us upon receiving a copy of the policy with the NCD and your name mentioned. Call for details.
  • If you have been driving a company car and you then buy a personal car,
    you would be allowed to transfer the NCD – provided you can show the number of “claim-free” years you have with an authorisation letter for NCD transfer issued by the authorized person from your employer or from the leasing company, if the car is leased.
  • If you are a foreigner / expatriate coming to live in Hong Kong,
    you may be entitled to a NCD, if you provide us with a letter from your last insurance company stating that: you have been insured over the last 12 months and the number of “claim-free” years.
Your No Claim Discount can be transferred from ONE CAR to ANOTHER, but cannot transfer to any other person.

For example: You’ve sold your 10 year old car and purchased a brand new one. You can transfer your existing NCD from your old car to the new car.
If you bought a second car, you can decide which car will benefit from the NCD you’ve earned on your first car.

Reduction in your No Claim Discount without the optional “No Claim Discount protection” cover

If an accident occurs, an automatic reduction in your No Claim Discount will apply.
Your No Claim Discount will be reduced as described in the table below:

   without the optional ‘No Claim Discount protection’ cover

Your Current
No Claim Discount

Your Reduced No Claim Discount
if you make 1 claim if you make 2 or more claims
60% 30% 0%
50% 20% 0%
20-40% 0% 0%
If you have selected the optional “No Claim Discount protection” cover

If you have selected our optional extra ‘No Claim Discount protection’ cover, and maintain your car insurance policy with DirectAsia, your No Claim Discount will be reduced as described in the table below:

   If you have selected the optional ‘No Claim Discount protection’ cover

Your Current
No Claim Discount

Your Reduced No Claim Discount
if you make 1 claim if you make 2 claims if you make 3 claims
60% 60% 30% 0%
50% 50% 20% 0%
40% 40% 0% 0%
30% 30% 0% 0%
20% 20% 0% 0%

Driving Offence Points Explained

Drivers in Hong Kong who commit certain driving offences that have direct bearing on road safety will result in Driving Offence Points being recorded. These points add up over time and can carry different warnings, mandatory classes and even result in a driver being disqualified from driving for a time.

Hong Kong drivers with more than 15 points in a two-year period will be disqualified from driving for 3 months. They can be disqualified for 6 months or more with additional convictions.

At DirectAsia we will not insure you if you have accumulated 12 offence points or more in a year.

For details on Driving Offence Points click here

Have questions?  Speak with us directly at (852) 2884 8888 or provide your details and we’ll call you back on the next working day.