When claiming 8,000 costs you more than it pays
On motor cover, a small claim can wipe out a no-claim bonus worth several times the amount you receive.
No claim bonus rises with every claim-free year and resets after a claim. On a motor policy the discount can reach a substantial share of the own damage premium after five clean years.
The arithmetic people skip
A small dent claim pays out a few thousand rupees after depreciation and the compulsory deductible. The reset then raises the own damage premium at every renewal until the bonus is rebuilt. Over three or four years, the loss can exceed the claim.
A simple rule
Before filing, ask for the repair estimate and compare it against the deductible plus the bonus you would forfeit. If the estimate is close to that number, paying out of pocket is often cheaper.
Two things worth knowing
- NCB protection is available as an add-on with most insurers. It allows a stated number of claims without resetting the bonus.
- Third party claims do not always affect the bonus in the same way as own damage claims. Check the wording before assuming.
The bonus belongs to you, not to the vehicle: it can usually be carried to a new car with the correct paperwork. Ask us for the transfer letter before you sell.