The Insurance Authority, in collaboration with Najm Insurance Services Company and insurance companies, has launched the “No Claim Discount” service.
This service aims to encourage all segments to renew their insurance before their current policy expires and reward their commitment with a discount on the renewal price of the insurance policy. Policyholders can find out the eligible discount percentage through the Najm website or app.
The NCD service is one of the incentives that encourages drivers to drive safely and commit to renewing their insurance before the policy expires. In Saudi Arabia, this discount is provided by Najm Insurance Services Company.
How to Benefit from the NCD:
First, every vehicle owner should understand the consequences of having a lapse in insurance coverage and not renewing it within a specific number of days between the expiration of the old insurance policy and the effective date of the new insurance policy.
The cases are divided into three stages:
Within 30 days of the insurance policy expiration: The eligibility is not affected, and the policyholder retains the NCD when purchasing a new insurance policy.
After 30 days of the insurance policy expiration: The policyholder temporarily loses the NCD for the vehicle for one year while retaining the insurance record. The discount is reinstated upon purchasing a new insurance policy the following year. This temporary suspension will not affect other vehicles registered in the policyholder’s name if their insurance policies are renewed regularly.
After 180 days of the insurance policy expiration: The policyholder loses the NCD completely for all vehicles.
Conditions for Eligibility for the No Claim Discount:
-The No Claim discount is affected only if there is a claim during the previous year and not just in case of an accident. A claim affects the NCD for all vehicles owned by the policyholder.
-Your insurance record must be free of claims. In case of a claim, you lose the discount for two years.
-The policyholder must complete a period of 10.5 months of the policy’s validity to be eligible for the next level of the NCD.
-If the vehicle is sold and the insurance policy is not canceled before the 10.5 months of the policy’s validity, the policyholder will be eligible for the next level of the NCD.
-If the policyholder owns an uninsured vehicle, they become ineligible for the NCD on all vehicles they own.
-If a person is not registered as a policyholder or a vehicle driver in the insurance policy for more than 12 months, they will lose the NCD.
When is the No Claim Discount Reduced?
If there is a claim during the previous year, the NCD is reduced by the amount equivalent to a two-year discount for both third-party liability and comprehensive insurance.
Cases of Losing the NCD:
-If you own an uninsured vehicle.
-If there is a lapse in insurance coverage between 30 and 180 days.
-If there is a lapse in insurance coverage for more than 180 days after the insurance policy expires.
The Importance of the NCD:
1-Encouraging Safe Driving: The discount serves as an incentive for drivers to drive cautiously and reduce accident rates while ensuring regular renewal.
2-Cost Savings: It helps drivers reduce the cost of their insurance policies, enhancing their ability to benefit from insurance services.
3-Promoting Renewal Commitment: The service encourages drivers to renew their insurance policies before they expire, ensuring continuous insurance coverage without interruption.
4-Rewarding Committed Drivers: For drivers who demonstrate commitment to safe driving and regular renewal, the discount acts as a reward and incentive for continuing these good behaviors.
5-Improving Insurance Records: Adhering to the conditions for obtaining the NCD can help drivers build a good insurance record, increasing their chances of receiving better insurance offers in the future.
6-Supporting Financial Sustainability of Insurance Companies: By encouraging drivers to regularly renew their insurance and reduce claims, insurance companies can lower the costs associated with claims and accidents, enhancing their financial sustainability.
If you need more information on how to benefit from the NCD, you can visit the Najm website or contact your insurance company.
You can also renew your insurance and explore the best offers through the BCare website.
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