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Frequently Asked Questions Medical Insurance What is a No Claims Discount?
Frequently Asked Questions Medical Insurance What is a No Claims Discount? | What is a No Claims Discount? |
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| Frequently Asked Questions - Medical Insurance | |
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No Claims Discounts (NCD) have become popular with some but only a few insurers. They normally offer a starter NCD of 25-30%. This is in effect a discount off the base rate for the plan. If you don’t claim in any year, your NCD increases and the policyholder’s annual premiums are buffered. For each and every claim made, the NCD will go down by normally two places (or two years). Therefore, on the next premium review, the client’s new premium will increase considerably compared to the previous year. Also, if the policy has two claims, and the policyholder has an age increase taking them into the next age bracket for their policy, they could find that the premiums easily double. This can often result in the client cancelling the policy because the cost has risen beyond their budget, or beyond what they would consider to be good value for money. Speak to an adviser if you are unsure whether a No Claims Discount is appropriate for your needs... |
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