The insurers in Hong Kong will usually talk to each other to confirm your NCD entitlement, and you would usually not be required to obtain a Letter of No Claims (or “Letter of Claims Experience”) if transferring your NCD between insurers within Hong Kong.
It is possible to transfer overseas NCD to a new Hong Kong policy, as long as you hold a No Claims Letter with at least the following information:
- Your name clearly as the policy-holder
- The insurance company name
- The policy number
- The period of insurance and all claims history within that period, or the number of claim-free years stated clearly with the end-date of the policy
The insurers in Hong Kong deem NCD to be valid for one year from the end-date of the last claim-free period. The NCD entitlement can be used on one policy at a time, and as a rule cannot be duplicated or ‘split’ for use on more than one policy at a time. However it is possible for a proposer to hold more than one NCD entitlement. For example, if two vehicles are registered in a person’s name and they have two insurance policies, with two separate claim-free histories, then the individual can have two NCD entitlements.
No Claims Discount is held by the policy holder (whether this is a company or personal name) and does not belong to Named Drivers. NCD cannot be granted to a Named Driver when they are not the policyholder, even if they have been named on a claim-free policy for many years.
It is sometimes possible to transfer NCD from a company name to a personal name and vice versa, if evidence can be provided that the individual is a Director of that company (a copy of the Annual Return, for instance), and if the new policy will have the same Named Drivers. However the NCD cannot then be transferred back again in the future.
Some insurers offer extra benefits for Comprehensive policies, which may include NCD protection, a New for Old clause and a towing service. Some insurers also provide 24-hour roadside assistance similar to AA cover, to varying levels depending on the insurer.