What does No Claims Bonus mean? Read on to discover the definition & meaning of the term No Claims Bonus - to help you better understand the language used in insurance policies.
No Claims Bonus
Discount or reduction in insurance premium allowed usually on auto accident policies. It can be as high a 60 percent of the premium, and is rewarded on the basis that there have been no claims (either by the policy holder or by a third party) on the policy in the previous period of cover. No claim bonus is not a 'no-blame' bonus, it is denied irrespective of who was at fault and even if the claim amount is very small.
We hope the you have a better understanding of the meaning of No Claims Bonus.