Car insurance NCD withdrawal refers to the process by which policyholders request to withdraw a portion of their accumulated No Claims Discount from their car insurance policy.
NCD is a reward system offered by insurance providers to policyholders who have not made any claims against their insurance policies during a specified period. The NCD serves as a discount on the renewal premium, helping policyholders save money on their car insurance premiums.
However, in certain situations, policyholders may choose to withdraw a portion of their NCD for various reasons, such as selling their vehicle or switching to a different insurance provider.
❌ Withdrawing / Cashing Out NCD
You cannot “withdraw” NCD as cash – it’s not money.
It only works as a discount on insurance premiums. The only way to “use” it is by applying it to a vehicle’s insurance policy (either existing or new car).
Special Case – Motorcycle vs Car
- Car NCD cannot be transferred to a motorcycle, and vice versa.
- Each category has its own NCD entitlement.
Step 1: Prepare documents. Transferring your NCD to a new vehicle requires the removal of the old one’s through a process called NCD withdrawal.
Step 2: Next, email to your old vehicle’s insurer’s and request for a form to transfer the NCD.
Step 3: Make the adjustment payment and submit receipt of payment and all required documents.
Step 4: Once released, email to new vehicles’s insurer’s and request for a refund.