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NCD now works on 'No Blame' principle


Eyke
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Supercharged

From BizTimes:

 

ONE important change to the NCD, or 'No Claim Discount', accompanied the GIA's adoption of the 'Barometer of Liability'.

 

Previously, getting a discount on your automobile insurance premium depended on the principle of 'No Claim'. This meant the only way a motorist could enjoy a premium discount was if no claim was made against his policy, either by himself or others.

 

For example, if Driver A claims under his own policy for repairs to his own car, his NCD is affected even if the accident that led to the claim being lodged was entirely the fault of Driver B.

 

To retain his NCD, Driver A has to claim against Driver B, who was responsible for the accident. Driver A then furnishes proof to his insurer of the successful recovery of his claim in full.

 

But 'No Claim' now operates on the 'No Blame' principle. This means that even if a claim is lodged by a motorist against his own policy for repairs to his car following a collision with an other vehicle, the NCD - the name remains the same - will not be affected if it is clear that the accident was caused more by the fault of the other party.

 

And 'No Blame' is interpreted as a situation where the motorist is 20 per cent or less to blame for an accident in terms of the 'Barometer of Liability', rather than a strict situation of no blame.

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Supercharged

blame apportion is nothing new, was being done all the while.

 

iirc, it's worked out between the insurance companies involved (for no-police report cases).

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And 'No Blame' is interpreted as a situation where the motorist is 20 per cent or less to blame for an accident in terms of the 'Barometer of Liability', rather than a strict situation of no blame.


like that very difficult to quantify sweatdrop.gifsweatdrop.gifsweatdrop.gifsweatdrop.gifsweatdrop.gif
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Neutral Newbie

might be a good change afterall.

 

But does it mean that premiums will remain status quo or will it go up, becoz of a claim, regardless of liability ?

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Neutral Newbie

regardless of how they determine the % blame, it is still a small improvement.

 

Now there's a slight chance to retain your NCD. At worst you affect your NCD which is current situation anyway.

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And 'No Blame' is interpreted as a situation where the motorist is 20 per cent or less to blame for an accident in terms of the 'Barometer of Liability', rather than a strict situation of no blame.


like that very difficult to quantify sweatdrop.gifsweatdrop.gifsweatdrop.gifsweatdrop.gifsweatdrop.gif

That is up to the judge to decide liao. sweatdrop.gif

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