What is No Claim Certificate: Its Benefits and Who Gets It?

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You are here probably because of your car insurance policy and are wondering about your No Claims Bonus – the discount given by your insurance provider for every claim-free year.

You can avail this discount while renewing your policy and if you switch from your current insurer to another, you get a no-claim discount certificate from the last insurer. It is the most reliable way of saving on your insurance premium.

See what is No Claim Certificate? How it helps you save and how you can maintain it over the years -

What is No Claim Certificate?

No claim certificate is a document that confirms that you are a safe driver and hence a reliable client for the insurance provider. This no-claim certificate entitles you to a no-claim bonus that reduces your car insurance price. You can use this certificate while renewing your car insurance or switching your car insurance provider.

  • Comprehensive
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*Above mentioned prices are for Honda City EX 1.5L, 2017 model.
*Above mentioned prices are for Honda City EX 1.5L, 2017 model.

Who gets No Claim Certificate from Insurance Company?

No good deed goes unnoticed! Any policyholder who does not raise a claim during the insurance term receives no claim certificate. If you are a safe driver with an untainted driving history, you will seldom require raising a claim on your car insurance. When you do not raise a claim on your car insurance, your car insurance provider earns some profit. This profit is shared with valued customers in the form of reduced car insurance premiums.

What Are the Benefits of A No Claim Bonus Certificate?

There are several benefits of no claim bonus:

Lower Premiums

Each claim-free year adds no claim discount to your car insurance premium prices in Dubai. You can earn up to a 20% discount on your car insurance premium using a no claim bonus.


Many people do not know that a no-claim bonus is transferrable. You can transfer the no-claim discount to your second car. If you are purchasing a new car, your no claim bonus will be transferred to the new car which will allow you to purchase car insurance at lower prices.

Freedom to choose

The biggest concern for safe drivers is to lose their no-claim bonus while changing their insurance provider. Don’t worry! Your new insurance provider will consider the claim-free years before deciding your car insurance premium.

Claim and no-claim bonus

You may worry that raising a claim can completely wash off your years of no claim bonus. You need to know that when you raise a claim, it affects your claim bonus by reducing the discount on your next car insurance premium. However, it will not retrograde your no-claim bonus to zero.

Who Provides No Claim Bonus Certificate?

According to the new regulations introduced by the UAE Insurance Authority, a safe driver in the UAE is entitled to a no-claims discount of up to 20%. This no-claim bonus is provided by your insurance provider as a reward for not raising a claim on your car insurance throughout the insurance term.

How to Get No Claim Certificate from Insurance Company

You need to contact your current insurance provider company and ask for your No Claim certificate. Then they will provide you the same as per requirements.

How to opt No Claims Bonus?

Some motor insurance companies in the UAE offer no claims discount protection. It is an optional cover that you can add on to your existing car insurance policy.

You are required to pay an additional premium to protect your no claims bonus after making a claim in the preceding year. This varies from one insurance provider to another and is subject to policy terms and conditions.

Some car insurance companies in Dubai will let you keep your no-claim bonus even if you make several claims (up to a specific limit) in a year, whereas the others will restrict the number of at-fault claims. However, it does not imply that your car insurance premium will not increase the next year since the claim will be shown in your history.

Key Points to Note

  • You can only avail No Claims Discount during policy renewal
  • No Claims Discount is calculated on the basis of the car and not the insured
  • If you are buying insurance for two cars, you can use your No Claims Discount on your second car as well.
  • In case you are at fault, and your insurer has to pay for the loss, your entire No Claims Discount or a part of it can be fortified
  • If it is a no-fault claim, the insurer may re-claim the payment from the third-party insurer and it will have no effects on your No Claims Discount.

So, What does that Mean?

It is quite evident that every car insurance company has different rules and regulations pertaining to the No Claims Discount. The discount rates also vary. It is recommended that you check with insurers and compare various car insurance quotes before you make your decision.

How it Helps You to Save?

No claim bonus adds up every year, and the higher the number of claim-free years, the higher is the discount.

Did you know that you could save up to 20% on your car insurance premium with a no-claim discount? As per the UAE Insurance Authority, an insured that has not made any claim for 1 to 3 years is allowed for a discount between 10% and 20 % while renewing their car insurance in Dubai.

If you are lucky enough and have a good driving record, then some car insurance companies in UAE may provide you up to 50% no-claim discount, considering your age, profession, and customer record among other factors.

What if You Make a Claim?

Usually, people think that no-claim discount will be nullified if a claim is made in the previous year. However, car insurance companies reduce the percentage of no claim discount during policy renewal. It varies from one insurance provider to another, as there is no set formula to calculate this reduction in the premium.

Your no-claim bonus is maintained even after making a claim for an accident or any other unforeseen event. Therefore, it is advisable that you check this with your auto insurance provider.

Can You transfer Your No Claims Discount?

No claims discount is availed on the insured vehicle and not the driver. You can transfer your no claim discount when changing your car insurance provider. You will get a 'No Claims Certificate' from your previous insurance company at no additional cost – as per the new regulations issued by the UAE Insurance Authority.

Related Links - 

Motor Claim Registration Toolkit
How to File Your Car Insurance Claim in the UAE
How to Make a Car Insurance Claim?
How to Claim Insurance for Car Accident in Dubai
How Long Does a Car Insurance Claim Take?

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