How to make insurance claim without losing NCB
Previously, I mentioned that NCB (No Claims Bonus) [also known as NCD - No Claims Discount] will be forfeited in the event of a claim being made or arises during the material policy year.
So, how does one preserve the existing NCB in one’s motor insurance policy in the event of an accident? You might be able to do so provided the following minimum set of facts are applicable:-
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The accident was due to the fault of the other party. To prove this, your own insurer would require a letter of confirmation that the police has taken an action against the other party (eg. a compound issued). Do note that action taken by police is not deemed as proof of negligence as far as a civil claim is concerned. However, it suffices for most, if not all, insurers.
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The other party is not going to claim from your insurance policy.
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You gather all documents required by your own insurance company and you make a OD/KFK claim from your own insurance company on your own insurance policy. Note that this would not be applicable if the other party’s vehicle is a vehicle for hire eg. stage bus or taxi.
In the above scenario, you are actually making a claim on your motor insurance policy from your own insurance company for the repairs to be done to your vehicle without losing your NCB due to this claim. As always, the usual conditions set by your insurer would be applicable, some of which are like notifying your insurer immediately upon the accident and forwarding your claim expeditiously. There is a slight hassle involved as you are expected to gather all supporting documentation which means a bit of running around here and there (minus the benefit of your damaged vehicle) but at least, you preserve your NCB entitlement.
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