no claims bonus definition

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.

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