What is a ‘no-claim’ discount?
A ‘no-claim’ discount is when you get, eligible for a discount in the premium of a comprehensive insurance policy at 20% for the 1st year, 25% for the 2nd year, 35% for the 3rd year, 45 for the 4th year and 50% afterwards. The value of the discount depends upon the insurance claims you have made in that particular year. This discount is adjusted against renewal premium. You can avail the no claim bonus when you renew your policy. Incase you are buying a new car you can transfer the no claim bonus from the policy of your old car to the new one. You need to intimate the insurance company in case you sell your car and you are eligible for the no claim bonus. The no claim bonus is adjusted against the premium of a new car, if the purchase is made within a period of three years.
