No Claim Bonus Car Insurance in UAE

Buy Car Insurance in 20 Seconds !

Instant Issuance


Personalised Expert advice

Expert advice

Guaranteed Low prices

Low prices

Car Insurance in Dubaicar image dark
Compare & Save Up to 30%on Car Insurance
  • Nissan
  • Toyota
  • Honda
  • Mitsubishi
  • Ford
  • Other
We Are Rated




Insurance Partners

1 Million+

Trusted Customers

250 K+

Policies Sold

Buying car insurance is not only mandatory but important too to keep your financial plans on track. But some buyers still do get skeptical about investing in insurance plans. The reason is simple – what if you never come across a situation where car insurance is needed? Or, what if the total claim amount over the years end up being a lot less than what you spent on premiums? Not getting proper returns or rewards for your investment can be stressful. However, it is a little different when car insurance plans are concerned. The basic tenure of a car insurance plan in the UAE is 13 months. If you happen to make zero claims during that time, insurance providers award you with something we call no claim bonus. Let’s dig deeper and find out what you should know about no claim bonus as a policyholder. 

What is a No Claim Bonus in UAE?

No claim bonus in car insurance is a discount bonus that is awarded for every claim-free year. The more consecutive claim-free years you spend, the higher your no claim bonus gets. By redeeming your no claim bonus, you get discounts on your premium rate. A policyholder can redeem no claim bonus before renewing their car insurance plan. It is not possible to use it in the middle of an ongoing tenure. No claim bonus or NCB in auto insurance is provided in the form of a percentage and is a reward for the policyholder. Just like your car insurance policy is about your car as an entity, no claim bonus is solely connected to the policyholder and not the car. 


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

How Does No Claim Bonus in Car Insurance Work? 

Insurance providers have a pre-decided set of rules and directives about no claim bonus for their policyholders. These rules can be accessed anytime – in the beginning when you buy the plan or anytime later during your tenure. The process of how no claim bonus works is simple. The percentage discount you earn as no claim bonus in car insurance is applied to the own damage cover premium of your plan and a reduced price is charged. No claim bonus discounts are not applied to the third-party liability cover premium of your comprehensive car insurance plan since it is a mandatory cover. 

For example, the total premium of Miss A’s car insurance plan is AED 10,000 out of which the own damage premium is AED 8,000. After her first claim-free year, she has earned a 20% no claim bonus. Her discounted premium next year when she renews her plan would be AED 6,400+ AED 2000 = 8,400. Here, AED 6,400 is the discounted own damage premium and AED 2,000 is the third-party liability cover premium. The no claim discounted is calculated by taking its own damage premium as the base price. If the premium and the no claim discount change upon the next renewal, the calculations are revised following the same format. 

How Do You Calculate No Claim Bonus?

Every provider has slightly different policies when it comes to no claim bonus. The percentage awarded for the first claim-free year generally stays between 20-30%. The second-year may see an increment of 5%. After that, it goes on at a steady increment of 5% with every consecutive claim-free year. Following is a chart to help you understand the increment rate better:

Claim-Free Years No Claim Bonus 

First Year


Second Year


Third Year


Fourth Year


Fifth Year


Most insurance companies provide a maximum of 50% discount on premiums as no claim bonus. Some policyholders may be able to earn up to 65% no claim bonus as well but that’s rare. After you have reached a 50% no claim bonus on your car insurance plan, the sunset period begins. The sunset period means that even with more claim-free years after the fifth year, your no claim bonus remains the same. 

How Can Claims Affect No Claim Bonus?

The general idea is that filing a claim might completely wear off your no claim bonus and you have to build it up from zero once again. However, some providers follow the “step-down” format as well. Here, your no claim bonus is reduced by a small amount with every claim instead of completely removing it. But again, this scenario is very rare. Most insurance providers reduce the no claim bonus to zero if a claim is made during the tenure. So, let’s say you have a 50% no claim discount after 5 consecutive claim-free years. If you file a claim in the sixth year, the no-claim bonus will get reduced to zero. 

Can No Claim Bonus Be Terminated?

There are two scenarios when your no claim bonus in car insurance can be terminated completely. The first is if you file a claim. The second is when your car insurance plan expires and is not renewed within the next 90 days. These 90 days are calculated from the date of expiration which falls at the end of the grace period. 

Can You Take Your No Claim Bonus with You When You Switch Providers?

Interesting fact – yes you can indeed take your no claim bonus with you if you happen to switch providers later. No claim bonus is awarded to the policyholder instead of the vehicle. A policyholder can take their earned NCB in auto insurance with them to your new car insurance plan or provider by getting it transferred. 

How Do I Transfer No Claim Bonus?

The process of transferring no claim bonus in car insurance can differ slightly depending on the situation. Given below are complete details for each situation:

When switching providers with the same or new car

  • Contact your new insurance provider and let them know about the NCB transfer to see if they require an NCB transfer certificate.
  • If yes, contact your old provider and obtain a no claim bonus transfer certificate and submit the required documents.
  • Submit it with your previous policy number, and the name of the provider.

Some insurance providers transfer NBC directly without a transfer certificate. If that is the case with your new provider, furnish your previous policy number and the name of the previous provider. The insurance company will arrange a transfer themselves. 

When switching cars but not provider

  • Cancel the previous car insurance plan or transfer it to the new owner, as the situation calls for.
  • When buying the new car insurance plan for your new vehicle inform your provider that you want NCB in auto insurance to be transferred. 
  • It will be applied automatically to your new car insurance policy. 
Car Insurance Addons
Zero Depreciation Car Insurance Passenger Cover With Car Insurance
Roadside Assistance Multi Car Insurance
Return to Invoice Car Insurance Personal Accident Cover Car Insurance
Car Key Replacement Cover Engine Protection Cover
Anti-Lock Braking Systems Pay as You Drive Car Insurance
Replacement Cover Car Insurance Agency Repair
IDV - Insured Declared Value Airbag Protection Cover

Lucky for you, there is a special add-on available out there that can help in retaining your no claim bonus even after you make a claim. It is known as the NCB retention cover. Car insurance plan holders can buy this cover for an additional premium with their comprehensive car insurance plans. Depending on the provider you may be allowed to make one or two claims during a pre-specified tenure without losing the no claim bonus. Some insurance companies allow 2 claims in 3 years with no claim bonus retention cover while others may have a one claim per year policy. 

No Claim Bonus FAQs

Q1 Can I transfer my NCB in auto insurance to a different type of vehicle?

Ans: No, no claim bonuses can only be transferred to the same type of vehicle say, from one car you own to the other car that you own.  

Q2 Will third-party claims reduce my no claim bonus?

Ans: Since no claim bonus does not apply to third-party insurance, third-party liability claims also do not affect your NCB in auto insurance. 

Q3 Do we lose no claim bonus if we don’t drive for a while?

No, you are allowed to keep your no claim bonus in car insurance even if you decide to give driving a break for a while. 

Q4 Can I cover every car I own with the same no claim bonus?

No, no claim bonus can be used to get a discount on one car insurance plan only unless your provider offers mirrored NCB service.

Q5: Can Named Drivers Acquire NCB in auto insurance as well?

Many providers allow named drivers in your car insurance plan to acquire no claim bonus of their own. This NCB in auto insurance can be used to get discounts for insurance policies they hold in their name in the future.

Does changing the type of my car affect the no claim bonus?

No, as long as you are using your no claim bonus in car insurance for the same type of vehicle, the type and model will not affect it. 

What is mirrored no claim bonus?

Mirrored no claim bonus in car insurance is a special service that some insurance providers offer. It allows you to purchase two car insurance plans using the same no claim bonus discount.

More From Car Insurance