I met with a minor accident last year. It was a minor accident and both parties agreed not to make any claim. I made a report to my insurance and told them that I would handle the repair on my own.
Several months later, my insurance company told me that the other party is claiming a large amount for quite extensive damages to the other car. The damages were not caused by the accident - but how can I prove it?
My insurance company told me that they will be paying the claim, and I would lose my NCD. Is it fair? Can they take away my NCD when I did not make any claim?
When you have an accident, it is best to take photos of your own car (and the other car as well) and send them to your insurance company. You should do this step, even if you are not making any claim for the repair of you own car. The insurance company will have a record of the actual damages and can refute any fraudulent claim involving aggravated damages.
Under the current practice, the insurance company will reduce or remove the NCD if they have to pay a claim on the policy from the policyholder or the third party. This is why it is call a "no claim" discount and is not a "no blame" discount.
As a service to the public, I will be building a website (under c-pearl.com) to allow the policyholder to upload photos of damages to their vehicle (and the other party's vehicle). The policyholder can provide the photos to the insurance company when it is needed in the future.