UAE Drivers Can Get Up To 20% No-Claims Discount on Car Insurance
Sometimes when we do some good work, our efforts are appreciated with a gift or reward. We live in an age, where a simple monetary discount or gain is one of the best rewards we can think of. Well, the same thing holds for the auto industry, but to avail these monetary discounts one needs to be a prudent driver and should have enough cover in their auto insurance policy.
There are some essential discounts that are currently available in the best car insurance in UAE and one such discount is a no-claim bonus. It is not gimmicking in any manner.
So, first we will discuss what no-claim bonus discount is all about and how much discount can you avail in order to reduce the premium amount by a few percentages?
What is No Claim Bonus (NCB)?
No-Claim Bonus, commonly known as NCB is a kind of discount that is offered by the auto insurance companies to the insured for every no-claim year of the auto insurance policy. The utilization of NCB is restricted to auto insurance and it can be utilized to avail discount on the premium of a renewal auto insurance policy. A policyholder can transfer the NCB from one car insurance company to another company at the time of renewing an auto insurance policy.
How Much No Claim Bonus Discount Can Be Availed By Driving Safe?
As said earlier, your car insurance policy rewards you for driving well and not making any car insurance claims in policy tenure with a No Claim Bonus discount.
But the question is how much no claim discounts can car owners avail in order to save on their insurance premium amount?
Well, car owners who are skilled and drive safely can reduce the premium amount by availing up to a 20% no-claim bonus discount.
Yes, you read that right.
All those drivers in the UAE who drive safely and have not filed any insurance claim on their auto insurance can get up to 20% No-claim Bonus discount on their car insurance renewals, following amendments to the UAE’s regulations that come into force in the beginning of this year i.e. from January.
Given the lack of sophisticated pricing system among the most of the car insurance companies in the UAE, the Insurance Authority has addressed this issue with this and its recent regulation amendments have mandated that car insurance companies offer no-claim bonus discount to all those UAE drivers who have not filed any claim on their auto insurance policy and want to renew it.
Many car insurance companies don’t adjust the insurance premium at all based on your previous driving records irrespective of whether or not, you hold a no claims certificate that depicts that you have not filed any claim on your insurance. Therefore, you are less risky to insure. Well, it is one of the significant examples of a relative lack of sophisticated pricing system in the UEA’s insurance sector.
Under the Board of Directors’ decision No. (41) of 2017 that amended the Board of Directors’ Resolution No. (30) of 2016, UAE drivers with a good driving history of 1 year should get 10% no-claim bonus discount. However, those drivers who have a clean record of 2 years can avail a 15% no-claim bonus discount, and drivers with 3 years without an insurance claim can avail up to a 20% no-claim bonus discount.
In addition to no claim bonus discount of up to 20% on car insurance renewals, UAE drivers who drive safely and follow traffic rules & regulations can also avail no-claim certificates from their car insurance company at no cost.
Under the previous regime, car insurers used to charge their customers an administration charge for offering no-claims certificate. However, there are still some car insurance providers who are charging an administration fee for offering these certificates. So, if you notice any such insurer, you can visit the official website of the UAE Insurance Authority in order to file a complaint against that insurer since it is illegal.
Under the new car insurance rules, if you have not made any car insurance claim during the policy tenure, you have a full right to avail a complimentary no-claim certificate.
No-claim bonus discount is the monetary discount that you can avail in order to reduce the large premium amount by a few percentages at the time of renewing a policy. So, opt for the best car insurance in UAE and drive safely to avail up to a 20% no-claim bonus discount on your car insurance renewals.