No Claims Discount (NCD) in Ghana Motor Insurance

No Claims Discount (NCD) is a reduction applied to motor insurance premiums as a reward for claim-free driving. The longer a client goes without making a claim, the higher the discount — up to 50% for private vehicle owners in Ghana after five consecutive claim-free years.

NCD scales under the Ghana motor tariff

The Ghana motor tariff sets specific NCD scales by vehicle category:

Private vehicles (X.1 and X.4):

Claim-free yearsNCD

0 years0%

1 year25%

2 years30%

3 years35%

4 years45%

5 years+50%

Commercial vehicles (taxis, minibuses, goods vehicles):

Claim-free yearsNCD

0 years0%

1 year15%

2 years20%

3 years+25%

Motorcycles and tricycles:

Claim-free yearsNCD

0 years0%

1 year+10%

NCD applies to the own damage (OD) component of the premium. It does not apply to the fixed TP premium on Third Party Only policies.

How do you claim NCD in Ghana?

To claim NCD when taking out a new motor policy in Ghana:

1. Obtain an NCD certificate from your previous insurer confirming your claim-free years

2. Provide the certificate to your broker when requesting a quotation

3. The broker applies the NCD at the appropriate scale before calculating your premium

Without a valid NCD certificate, the insurer will apply 0% NCD regardless of your actual history. The certificate must come from a licensed Ghana insurer.

What happens to NCD after a claim?

Making a claim reduces or eliminates your accumulated NCD at the next renewal:

In most cases, one claim resets NCD back to 0% for private vehicles

Some insurers offer NCD protection as an optional benefit — allowing one claim per year without losing the discount, for an additional premium loading

After a claim, NCD rebuilds at the standard rate (25% after the first claim-free year)

If the claim is not your fault and you recover the full cost from a third party, some insurers will not penalise your NCD — confirm this with your broker before making a claim.

NCD vs fleet discount

NCD and fleet discount are two separate mechanisms:

NCD is based on individual claim history and applies per vehicle

Fleet discount is based on the total number of vehicles in a fleet and is negotiated with the insurer

Both can be applied simultaneously, but the combined discount must not reduce the premium below the insurer's minimum acceptable rate.

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Frequently asked questions

Can I transfer my NCD from one insurer to another in Ghana?

Yes. Your NCD certificate from your previous insurer is transferable to any licensed Ghana motor insurer. The certificate must confirm the number of claim-free years.

Does NCD apply to Third Party Only motor insurance?

No. NCD applies to the own damage component of comprehensive and TPFT policies. Third Party Only policies use a fixed premium from the tariff to which NCD does not apply.

What is the maximum NCD available on motor insurance in Ghana?

The maximum NCD for private vehicles (X.1 and X.4) is 50% after five consecutive claim-free years. For commercial vehicles the maximum is 25%, and for motorcycles it is 10%.

Is there NCD protection available in Ghana?

Some insurers offer NCD protection as an optional loading on the premium. This allows the insured to make one claim per policy year without losing their accumulated NCD. Ask your broker if this is available.