No Claim Bonus |
| A bonus awarded to a policyholder when no claims have been made on an insurance policy during the period of insurance, usually one year. The bonus is subsequently applied to reduce the renewal premium. The motor insurance business uses this approach extensively and companies will usually increase no claim bonuses annually up to a maximum, typically 60%, after four or five years. This method of rewarding policyholders with no claims is sometimes used in household insurance. |
|
|