No Claim Bonus: Know What is & How Does No Claim Bonus (NCB) Work

In the UAE, the No Claim Bonus (NCB) is a reward for safe and responsible drivers. It’s an incentive offered by insurance companies to policyholders who complete a year or more without filing any claims. This bonus is typically applied as a discount on the next year’s premium, making car insurance more affordable for those with a clean driving record.

The NCB not only saves money but also encourages careful driving habits, contributing to safer roads across the country. The longer you maintain a claim-free record, the greater the discount, with rates often increasing incrementally over consecutive years. Interestingly, even if you switch insurers, the NCB remains transferable — this lets you continuously reap the benefits of your good driving history.

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Understanding how the NCB works can help you maximise your savings while enjoying comprehensive coverage. Explore this page to learn all about the NCB and how to make the most of it!

What is a No Claim Bonus in Car Insurance?

A No Claims Bonus (NCB) is a reward system for drivers who go a year or more without filing any insurance claims. For each claim-free year, insurers offer a discount on your premium. The longer you stay claim-free, the bigger the discount. It’s a way for insurers to appreciate safe and responsible driving.

What is a No Claim Certificate?

A no-claim certificate confirms that you’ve been a safe and responsible driver for a specific period, usually a year. It helps insurers see you as a reliable client, making you eligible for discounts on your car insurance. This certificate is typically used when renewing your policy or switching to a new insurance provider.

What are the Benefits of a No-Claim Certificate?

Getting a no-claim certificate shows that you have driven responsibly without any hassle or losses. Here’s how you can make the most of it –

Discount on Premium - The UAE Insurance Authority allows discounts on your car insurance premium based on your no-claim history. A one-year certificate gets you up to 10% off, two years get 15%, and three years qualify for up to 20%. These rates may change over time.
Transfer to New Insurance - You can switch to a better car insurance deal with no claim bonus. Your no-claim certificate can add more savings, making the new policy even more cost-effective.

How Does No Claim Bonus Work?

The company may offer no claim discounts for car insurance to individual applicants with a claim-free record as follows —

10% for no claims in the past year
15% for no claims in the past two years
20% for no claims in the past three years
10% loyalty discount for renewing with the same company — as long as the policyholder remains the insured individual and does not transfer the policy

Can Your No Claim Bonus be Terminated?

Your No Claim Bonus (NCB) can be cancelled in two situations —

If you file a claim
If your car insurance expires and isn’t renewed within 90 days from the expiration date, which includes the grace period

The No Claim Bonus (NCB) encourages safe driving by rewarding those with clean records. Here are some rules related to NCB –

Your NCB remains valid even if you switch insurers.
- Request a ‘No Claims Bonus Proof’ or ‘No Claims Certificate’ from your current provider and share it with the new one.
The longer you go without making claims, the higher your discount. Safe and responsible driving helps you save more on premiums.
Your NCB usually stays intact if you’re in an accident where you’re not at fault. You’ll still get your certificate at year-end.
Some insurers let you apply your NCB to a second vehicle, offering discounts on both policies. With that said, check with your insurer for this option.

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