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No-Claim Bonus Facts

Written by Huma

Having a No-Claim Bonus in your car insurance coverage can cut down a significant amount of policyholders monthly car premiums.

According to the UAE auto insurance regulation policyholders who make zero claims get rewarded. Zero claims mean that the policyholder has been an exemplary driver, and their reward is a discount on their premium.

Now the consumer can enjoy the perks and incentives at the time of constraint budget and hefty car damages or repairs.

Drivers of fleet auto vehicles or normal cars or any motorcycles, all have vague knowledge about the no-claim bonus which led them to miss out on the spectacular discounts and packages of the auto insurance.

There were always arguments and discussions on this particular topic. The most frequently asked questions are:

FAQS:

Q) What is the concept behind No-Claim Bonus?

The concept is simple, you are basically awarded for not making any claim on your car insurance during your policy term and that number of count years claim is saved on for the proceeding auto premium.
No-claim certificate is given to the clients free of charge.

Q) How much savings or discounts a person can get on this claim?

The amount or total worth depends upon the insurance company you are registered with. But according to the insurance analyst, an individual who hasn’t made claim for a number of years can get up to 20% discount on his/her car premium or renewal policy.

Noting the lack of awareness of the insurance consumer on this discount the UAE Insurance Authority passed a law where they mandate the auto protection provider to tell advantages of no-claim discounts to their clients and give discounts for drivers who haven’t claimed on their policies and want to renew.

Here in this blog, we present you unknown facts about no-claim bonus as shown below;

Fact#1

Accelerate Your No-Claim Bonus (NCB):

Your car is insured every year without any claims.

You haven’t been involved in any accidents or violated traffic regulations.

  1. Then in this scenario, you have accelerated your NCB for next auto premium
  2. Some insurance providers can let you earn a bonus in ten months instead of 12 months’ timeframe.

Normal you can always stretch your no-claim bonus unlimited but after five years is the most clients use this claim.

Fact#2

Making a claim can affect your NCB?

Your NCB doesn’t drop zero if you make a claim.

One thing is clear if your insured car is not
involved in any accidental damage in a year then NCB is not affected but

  1. If you hit your insured car then your provider may pay out the expenses of the damage but you will be not liable for NCB and your car premium may get little up due to the high risk
  2. On the other hand, if the accident was not your fault then not only your expense would be paid but also your NCB option will be valid to use anytime.

Fact#3

No-Claim Bonus Certificate:

Many of us think how NCB certificate helps us in the longer run.

Well having NCB can save you from hassle like

  1. For instance, you want to change your car or insurance provider, then as proof, you will need this certificate in time of transfer.

The exiting insurance company gives a sort of letter that contains the proof of no claims before your car insurance is due for renewal.

Fact#4

Protected No-Claims Bonus:

You can protect your no claim bonus without influencing your bonus, at a certain amount of ‘at-fault accident’s’

Therefore, if you have an accident, the NCB remains constant even if your insurer can’t claim their payments back.  Each insurance company has different rules and regulations regarding how many claims are approved. 

Fact#5

No Impact on NCB when purchasing new Car or Policy:

Getting a new car doesn’t mean your NCB is lost.

NCB is associated with the driver, not with the automobile.

  1. No claim bonus can transfer to your new car but for that, you have to have at least one year of NCB.
  2. The insurance company will give you an NCB proof of that end year and you can avail it for the next car or policy by just showing this proof.
  3. If you switch insurance provider less then a year then NCB won’t be transferred nor you can utilize the NCB for next year.

It should be noted for more than one you can’t use a no-claim bonus for more than one vehicle.

Fact#6

NCB To Fleet Cars Insurance:

There are rare insurance providers in the UAE, who are giving an opportunity to business to use the no-claim bonus for commercial or fleet cars.

  1. Drivers experience and age is checked to set the car premium

Fact#7

Is NCB Already a part of the Auto insurance coverage:

Most of the auto protection coverage companies considered the no-claim bonus as an add-on cover that has an extra charge and makes policy according to that principle.

It’s a viable and smart option to pick NCB even
its add-on as with small extra charge you can protect your financial status
from big premium and of course from road danger.

Fact#8

Transfer of NCB Of Fleet Car on Your Personal Car:

You can still use the NCB of your company car after you have handed over the business car.

But the NCB is only likely to be transferable if you are named on the company’s insurance policy for a particular car

Fact#9

Online Insurance Bloggers View:

To make your life a little easy and stress-free, now you can find all the A to Z pointers regarding no-claim bonus by the authentic and real-time insurance content makers available on the internet.

BuyAnyInsurance is one of the best digital auto insurance
platforms in the UAE that provide the audience the bigger picture on how to
save money and avail no-claim bonus from best car insurance companies.

Conclusion:

It is worth knowing that your good driving and the risk-free vehicle can save a significant amount with the advantage of having a no-claim bonus in your coverage

It is best to approach to always do your own investigation and get out these best reliable and suitable packages.


Originally published Oct 22, 2020 19:08:00 PM, updated Jun 14, 2021

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