What Is A No Claim Bonus?
This is a bonus that you receive as a percentage discount on your premium after a year with no claims.
It is also referred to as claim free group.
If you do claim, you lose your No Claim Bonus and your premium increases.
This usually occurs on the renewal date of the policy, but can be effective the month after the date of loss.
Insurance Companies takes into account any losses or damages an insured previously had, whether claimed for or not, when applying a No Claim Bonus to an item or section of the policy.
It is of paramount importance that a policyholder informs his or her insurer or broker of any previous losses suffered, whether claimed for or not, to prevent any hassles at claim stage.