• What is a No Claim Bonus or Certificate?

    A lot of people might find it disturbing and discouraging to apply for insurance with the feel that an insurance does not payback anything, if claims have not been made throughout their insurance tenure. This first of all is not true. While, maturity benefits are one of the leading paybacks, when it comes to life insurance, there is something else that is a form of payback in general insurance known as the no claim bonus or the certificate that entitles an individual for a no claim bonus.

    Features of No Claim Bonus on Car Insurance

    To understand no claim bonus here are some of the main features of no claim bonus and how it work:

    • The insurer will have details of your No Claim Certificate. This can be also listed in the latest receipt for your insurance renewal.
    • The amount eligible for claim will be provided on request from the insurance company but it can also be seen in the insurance renewal notification mail or email.
    • The discount can also be used for the insurance of your second car, if you have another car in your name.
    • The discount amount is variable based on the insurer you choose.
    • However, the first year’s no claim on your car insurance may allow you to enjoy a discount of approximately 7%, which will be available to your next year premium. Yes, it does work like the offers from pizza places, where you are rewarded with a discount on your next pizza order. However, unlike pizza places, this discount percentage can go upto 20%.
    • If you make a claim, within a given tenure, the no claim bonus will be reduced but not nil. This means that you can still get a discount on your net premium, but lesser in amount.
    • NCB can be protected against theft or fire, although it will cost you more. Also note, that only selective insurers in UAE, do allow you this option. The terms and conditions vary, based on the insurance company. The advantage of this option is the fact that you can save on no claim discounts even if you make 1 or 2 claims, based on the insurance provider’s policies on the same.
    • The best part about NCB is the fact that, this benefit can be used if you change your car insurance provider. Though the numbers may vary based on the insurance provider’s policy but you do not lose out on the advantage. But there is a catch, which is often ignored. Change insurance when you have to renew the plan else you lose out on the NCB discount.

    People are often unaware of the discount and rewards through NCB in UAE, but it can make the car insurance premiums less overwhelming, especially given the fact that some families own multiple cars in the country.

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