Online insurer DirectAsia launched a car insurance package on Friday (June 2) which includes an additional 10 per cent no claim discount (NCD) over and above the industry standard of 50 per cent. This seeks to reward drivers who have held the NCD status for at least five consecutive years, meaning that drivers can now get up to 60 per cent discount on their car insurance base premium.

In the face of rising car ownership costs in Singapore, DirectAsia seeks to ensure that its customers have an “added incentive to remain safe and comprehensively covered when driving,” said Mr Bob Thaker, CEO of DirectAsia Singapore in a statement.

Currently, all other car insurers offer a 10 per cent discount for every year that a driver maintains an accident-free record, up to a maximum of 50 per cent. The new offering by DirectAsia, called NCD60, will be offered to drivers who maintain their NCD50 status for at least five years, meaning that drivers with a total of 10 years’ accident-free record can qualify for the additional 10 per cent discount.

For example, at the time of launch (June 2017), drivers who have attained NCD50 status by latest June 2012 will qualify for NCD60 with DirectAsia. However, a driver who reached NCD50 on September 2012 will not be eligible for NCD60.

Singapore is the first market that DirectAsia is launching this new benefit in. The offer is open to Singapore residents, permanent residents and work pass holders, said DirectAsia.

Existing customers as well as customers who switch to DirectAsia are eligble for the discount. Drivers can also opt to protect their NCD60 status with DirectAsia’s NCD Protection optional benefit, which can be purchased for a nominal fee, said the insurer.

According to DirectAsia’s market data, up to half the car drivers in Singapore qualify for NCD50.

The product launch was met with mixed reactions from motorists, with some welcoming the extra discount, while others were more wary.

Ms Tripta Singh, 43, who works in the broadcasting industry and drives a Nissan Qashqai, said: “This is a great initiative to reward drivers who have a good track record and to further incentivise them to keep our roads safe in Singapore.”

Other motorists, like Dr Leong Chan Hoong, a senior researcher, are more sceptical. “Discounts are not the only consideration when selecting an insurance product. You have to be comfortable with your insurer and know what you are covered for,” he said. WITH ADDITIONAL REPORTING BY RUMI HARDASMALANI

Source:
courtesy of TODAY

by TODAY ONLINE

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