In India, under the Motor Vehicle Act, it is mandatory to insure any type of vehicle, be it a car, a motorcycle or a scooter. Car insurance premiums are very high, so if you also want to reduce your car insurance premium by 50%, then this method can work for you.
No claim bonus proves to be very helpful in reducing the premium of car insurance. If a policy holder does not claim any kind of damage or loss during the term of the car insurance policy, then the policy holder gets the benefit in the form of waiver of premium.
The ‘No Claim Bonus’ helps a lot in reducing the car insurance premium.
Whenever a policy holder renews his car insurance policy. Then the company gives him a discount of 20 to 50 percent on the premium due to the no claim bonus. In this way people’s car insurance premium is reduced by up to 50 percent.
The objective of ‘No Claim Bonus’ is to promote safe driving among the masses.
The benefit of No Claim Bonus keeps increasing year after year. How many times have you received No Claim Bonus with your car insurance? This determines the discount on your premium. The more times you avail the ‘No Claim Bonus’ with your car insurance, the higher the exemption limit on your premium.
The benefit of No Claim Bonus increases every year for the policy holder.
One more thing that matters with ‘No Claim Bonus’. That is, its benefit is actually linked to the policy holder and not to the vehicle you have insured. If you have availed No Claim Bonus multiple times on one of your cars, then you can avail the same on insurance of your other cars as well.
The number of times the No Claim Bonus is availed, the lower the premium
Insurance companies believe that policyholders who take ‘no claim bonus’ drive safer vehicles, so accidents are less and claims are less. Companies also offer ‘No Claim Bonus’ to encourage safe driving among people.
(pc freepik)
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