no claim bonus

No Claim bonus is one of the best ways to save money on car insurance in UAE. These are the rewards provided just for being a safe driver. The ultimate objective of the no-claim bonus is to encourage the drivers to drive safely without getting into any mishap.

What is No claim bonus on car insurance?

No claim bonus(NCB) is a reward provided to the insurance holders who don’t make a claim for 2-3 years on a car insurance policy. Insurance holders get a discount on their next premium to for not claiming the coverage till date.

Check: Buying car insurance – Dos and Don’ts

Discount provided on NCB

The premium discount provided on NCB depends upon the insurer. The maximum discount provided depends on the total number of years you didn’t request for the claim which can go up to 20%. Some of the insurers provide up to 50% discount on the premiums which depends on the driver’s profile. The discount provided keeps increasing over time.

When is NCB provided?

No-claim bonus can be claimed at the end of the policy or before renewing the old one. The terms and conditions on NCB totally depend upon the insurance providers.

  • At some companies, NCB can be continued with your previous record even if you change insurance provider while at some it will be a new start.
  • Some insurance providers will have a specific count on claims that can be made without affecting the NCB discount gained so far, while some don’t.  

How to avail NCB provided on an insurance policy?

Most of the insurance providers offer NCB as an add-on to the current policy you have opted. This is to protect your coverage that was not claimed. Insurers levy extra charges on the premium on availing NCB add-on.

Things to know about NCB-

  • Most of them assume that making a claim after 2-3 years will nullify their NCB acquired to date, which is a myth. Claiming for a coverage after some years will reduce the discount provided on premiums but will not nullify it.
  • NCB will be registered on the person, not on a vehicle.
  • NCB can be transferred from one car to another, as it is registered on the person.
  • The number of claims that can be made without affecting the discount rate depends on the insurer
  • NCB is an add-on that will be added to your cover with additional charges

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