Insurance glossary
No-claims bonus
Also known as: NCB, no claims discount, no-claim bonus
Quick definition
A premium discount that grows each year you remain claim-free, often reaching 30-50% off after 5+ consecutive claim-free years. Reset (typically partially) when you claim. Worth protecting on small claims that fall close to your excess.
Understanding No-claims bonus
A no-claims bonus rewards claim-free years with a stepped discount that grows annually up to a ceiling. Crucially, an NCB is largely an internal record of the insurer that grants it — it does not always transfer cleanly when you switch, though a new insurer will usually ask about and credit your claim-free history, so it is worth getting written confirmation of your record before moving.
The practical decision an NCB drives is whether to claim at all on a small loss. If the repair is only a little above your excess, claiming can cost you more over the next few years in lost bonus than you recover now — so for minor knocks, paying out of pocket and preserving the bonus is often the better maths.
Some insurers let you protect the bonus for an extra premium, allowing a set number of claims without losing your discount. It is worth considering once your NCB has climbed into the higher bands, where the rand value of the discount is large enough to be worth defending.
Definitions reviewed by the OneCompare editorial team. OneCompare (Pty) Ltd is an Authorised Financial Services Provider (FSP 55551).
← Back to the full glossary