What is a No Claim Bonus?
If an insured doesn’t make any claims during the policy tenure, he becomes eligible to receive some benefits at the time of renewal of the policy. These benefits are known as no claim bonuses. This benefit goes on accumulating for every no-claim year. The final benefits can range from 20% up to 50% of the premium amount. In case a claim is made, the insured will not be able to avail of any no claim bonus.
The no-claim bonus is given to the insured and not to the vehicle. The implication of this is that on the transfer of the vehicle, the policy can be transferred to a new owner, but not the ‘no-claim bonuses’. The good part is that the original owner can avail the no claim bonus on a new vehicle purchased by him.
- What is the amount for which I need to insure my commercial vehicle? How is IDV connected to the amount needed to insure vehicle?
- What kind of risks is covered by IFFCO Tokio third party policy?
- Consequences if I forget to renew my commercial auto insurance on time
- Can I renew my commercial vehicle insurance with IFFCO Tokio?
- What is a No Claim Bonus?