Often people are concerned about knowing what is a no claim bonus certificate? A simple and straight answer to this question is that it is an insurance document. It is just an experience letter issued by the insurance company to its customer for showing a good track record of not having any insurance claim.
Now the question arises why this certificate is required. In majority of the countries of west including USA, UK, Canada, Australia and many countries of European Union, the economies are dependent upon insurance system. It is mandatory for the buyers of vehicles and houses to have insurance in most cases.
For that they have to hire the services of various insurance companies. There are certain documents required by the insurance companies at the time of selling policy. One of these document commonly required these days is a no claim bonus certificate. That helps the insurance companies to analyse the background of the insurer.
The insurance companies usually give discount to its customers when they provide No claim bonus certificate with years of good performance as a client with the previous insurance company. For any queries related with insurance, feel free to ask us at internationallawyerinfo@gmail.com
Regards,
Salman Yousaf Khan
Insurance Lawyer
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