The No-Claim Discount (NCD) system in Saudi Arabia represents one of the most significant financial incentives for safe drivers. Whether you’re a Saudi national or an expatriate, understanding how NCD works can save you thousands of riyals annually on your vehicle insurance premiums.
What is No-Claim Discount (NCD)?
No-Claim Discount, commonly known as NCD or No-Claim Bonus (NCB), is a reward system implemented by insurance companies to incentivize safe driving behavior. When policyholders complete an insurance year without filing any claims, they become eligible for discounts on their subsequent policy renewals.
In Saudi Arabia, the Saudi Central Bank (SAMA) regulates the NCD framework, ensuring standardization across all insurance providers operating in the Kingdom.
Key Features of NCD in Saudi Arabia:
- Accumulated over consecutive claim-free years
- Transferable between insurance companies
- Regulated by SAMA guidelines
- Maximum discount caps at specific percentages
- Applies to both comprehensive and third-party liability insurance
How Does the NCD System Work in 2026?
The NCD system operates on a cumulative yearly basis. Each year you drive without making a claim, your discount percentage increases according to the standardized table set by Saudi insurance regulations.
NCD Calculation Formula
Discounted Premium = Base Premium × (1 - NCD Percentage)Example: If your base premium is SAR 2,000 and you have a 25% NCD:
- Discount Amount = SAR 2,000 × 0.25 = SAR 500
- Final Premium = SAR 2,000 – SAR 500 = SAR 1,500
Updated NCD Percentage Table for 2026
The following table outlines the standard NCD percentages based on claim-free years in Saudi Arabia:
| Claim-Free Years | NCD Percentage | Potential Savings (on SAR 2,500 premium) |
|---|---|---|
| 1 Year | 10% | SAR 250 |
| 2 Years | 15% | SAR 375 |
| 3 Years | 20% | SAR 500 |
| 4 Years | 25% | SAR 625 |
| 5 Years | 30% | SAR 750 |
| 6 Years | 35% | SAR 875 |
| 7 Years | 40% | SAR 1,000 |
| 8+ Years | 45-50% | SAR 1,125-1,250 |
Note:Â Some insurance companies in Saudi Arabia offer additional loyalty bonuses beyond the standard NCD percentages.
Types of Vehicle Insurance Eligible for NCD
1. Third-Party Liability Insurance (Compulsory)
This is the minimum legal requirement for all vehicles in Saudi Arabia. NCD applies to third-party insurance, reducing your annual premium costs significantly over time.
2. Comprehensive Insurance
Also known as “full coverage,” comprehensive insurance provides broader protection. NCD percentages often yield higher absolute savings due to higher base premiums.
Comparison Chart: NCD Savings by Insurance Type
| Insurance Type | Average Annual Premium | 5-Year NCD (30%) Savings |
|---|---|---|
| Third-Party | SAR 800 – 1,500 | SAR 240 – 450 |
| Comprehensive | SAR 2,500 – 8,000 | SAR 750 – 2,400 |
How to Check Your NCD Status in Saudi Arabia
Verifying your NCD status has become significantly easier with digital platforms. Here are the primary methods:
Method 1: Najm Portal
- Visit www.najm.sa
- Navigate to the “Services” section
- Select “NCD Inquiry”
- Enter your Iqama/National ID number
- View your NCD certificate and history
Method 2: Insurance Company Apps
Most major Saudi insurance companies provide mobile applications where policyholders can:
- Check current NCD percentage
- Download NCD certificates
- Track claim-free years
- Receive renewal reminders
Method 3: Unified Motor Insurance Platform
The Unified Platform for Motor Insurance allows comparison shopping while automatically verifying your NCD status across all providers.
Factors That Affect Your NCD in 2026
Understanding what impacts your NCD helps you protect this valuable discount:
Factors That Reduce or Reset NCD:
| Action | Impact on NCD |
|---|---|
| At-fault accident claim | Full reset to 0% |
| Partial fault claim | Reduction by 2-3 levels |
| Multiple claims in one year | Complete reset + potential loading |
| Theft claim (comprehensive) | May or may not affect (varies by insurer) |
| Windshield-only claim | Usually protected (check policy) |
Factors That Protect Your NCD:
- NCD Protection Add-on: Available for additional premium
- Excess payments: Paying repair costs yourself
- No-fault accidents: When you’re not responsible
- Natural disaster claims: Some policies exclude these
NCD Protection: Is It Worth It in 2026?
NCD Protection is an optional add-on that allows you to make a limited number of claims without losing your accumulated discount.
Cost-Benefit Analysis
| Years of NCD | Annual NCD Value | NCD Protection Cost | Recommendation |
|---|---|---|---|
| 1-2 Years | SAR 200-400 | SAR 150-250 | Not recommended |
| 3-4 Years | SAR 400-700 | SAR 200-350 | Consider carefully |
| 5+ Years | SAR 700+ | SAR 250-450 | Highly recommended |
Pro Tip: NCD protection becomes more valuable as your discount percentage increases. Drivers with 5+ years of NCD should seriously consider this add-on.
Transferring NCD in Saudi Arabia
Between Insurance Companies
One of the most important aspects of the Saudi insurance market is NCD portability. Your accumulated discount travels with you when switching providers.
Requirements for Transfer:
- Valid NCD certificate from previous insurer
- Certificate must be issued within 12 months
- No claims recorded during the certificate period
- Matching vehicle and policyholder details
For Expatriates Arriving in Saudi Arabia
Expatriates can potentially transfer international NCD, though acceptance varies:
| Origin Country | Acceptance Rate | Required Documentation |
|---|---|---|
| GCC Countries | High (90%+) | Arabic certificate |
| UK/EU | Moderate (60%) | Translated certificate + embassy attestation |
| Other Countries | Low (30-40%) | Case-by-case basis |
2026 Updates to NCD Regulations
The Saudi insurance sector has introduced several updates for 2026:
Key Regulatory Changes:
- Digital NCD Certificates: Paper certificates being phased out
- Real-time Verification: Insurers can instantly verify NCD status
- Standardized Calculation: More uniform NCD percentages across providers
- Extended Protection Options: New NCD protection tiers available
- Fleet Vehicle NCD: Commercial vehicles now eligible for pooled NCD
SAMA Initiatives for 2026:
- Enhanced consumer protection measures
- Faster claims processing (48-hour target)
- Improved NCD dispute resolution
- Transparency requirements for insurers
Tips to Maximize Your NCD Benefits
Driving Safely
The most straightforward approach—avoid accidents and traffic violations to maintain your claim-free record.
Consider Excess Payments
For minor damages, paying out-of-pocket may be cheaper than losing years of accumulated NCD.
Review Policy Exclusions
Understand what claims affect your NCD and which are protected under your policy terms.
Shop Around Annually
Different insurers may offer varying NCD recognition and additional discounts.
Document Everything
Maintain records of your driving history and NCD certificates for future reference.
Frequently Asked Questions (FAQ)
Q: Does NCD reset if my policy lapses?
A: You typically have 12-24 months to renew before losing your NCD, but this varies by insurer.
Q: Can I transfer NCD to a different vehicle?
A: Yes, NCD is linked to the driver, not the vehicle, in Saudi Arabia.
Q: Do parking accidents affect my NCD?
A: Only if you file a claim. Paying for minor repairs yourself protects your discount.
Q: Is NCD applicable for motorcycle insurance?
A: Yes, similar NCD structures apply to motorcycle policies.
Conclusion
The No-Claim Discount system in Saudi Arabia offers substantial savings for responsible drivers. With potential discounts reaching 45-50% after eight claim-free years, understanding and protecting your NCD should be a priority for every vehicle owner in the Kingdom.
As we move through 2026, the continued digitization of NCD verification and enhanced SAMA regulations make it easier than ever to benefit from this system. By driving safely, understanding your policy terms, and leveraging NCD protection when appropriate, you can significantly reduce your annual insurance costs while maintaining comprehensive coverage.
For official guidelines, visit the Saudi Central Bank (SAMA) or consult with licensed insurance providers in Saudi Arabia.
