I sent this letter to the General Insurance Association and to my own insurance company.
I wish to enquire about the application of No Claim Discount.
I understand that the NCD is reduced on renewal if there is a claim lodged against the policy during the period of insurance.
If the policyholder makes an accident report but does not make any claim (and there is no claim from the other party), does the policyholder loses the NCD?
Someone told me that it is now the "market practice" for the NCD to be impacted, if there is a report of an accident, even though no claim may be lodged.
I teach Insurance in SMU and need to give to my student the current "market practice".
4 comments:
Mine is under AVIVA and my NCD was not affected when I renewed it last July even when I reported to them my accident in previous year and no claim was made from my policy.
I do heard people saying that it will impacted the NCD but yet to really know any case that is true so far. New rule?
NCD - no claim discount, so if nothing is claim, the discount is still valid. No reason for the insurance companies to penalize us for other party's careless driving. If will impact, then insurance company in win-win situation! We still pay them for what!
You'll be surprised different insurance companies have different definition of NCD.
NCD is No Claim Bonus. I believe most of the insurance company will clock your accident count even if there is not physical reimbursement payout after the accident. They may just want to protect their rights in-case the third party claim comes in a few months after the accident. You can find more information on No Claim Bonus here.
As per your question
"If the policyholder makes an accident report but does not make any claim (and there is no claim from the other party), does the policyholder loses the NCD?"
Its totally depends on the insurance policy i.e some company provides some "NCD protection option", in which you will not lose any NCD on renewal following a window glass claim, or if the other vehicle in a collision is entirely at fault.
Car breakdown cover
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