NCB protection in the event of a claim?

JohnCleary

Member of the family was unfortunate enough to be in a small tip today (Literly bumper damage only thank god). Anyhow, accepted liability etc. etc. The other party said they'd hold out a day to see whether the person in my family wants to go through insurance or pay themselves.

Now, they're thinking of going through the insurance. They have a full 50% NCB, and also, on the policy it states 'Including No Claims Discount Protection Cover'. My guessing is that a claim will NOT effect his policy. There is a €120 excess which he is aware of. The insurance is with FBD, and is fully comp.

Can anyone put his mind at ease before he goes into the Incurance Co. tomorrow to get a definate answer?

Anan1

I'm with FBD myself, and I quizzed them a couple of weeks ago about what exactly their NCB protection means. I was assured that it meant that I would not lose my bonus, regardless of the size or number of my claims. My understanding is therefore that your relative will pay the excess, FBD will pay the rest, and the NCB will be unaffected. Do bear in mind, though, that any claim will still be taken into account if your relative decides to change insurance providers within the next 5 years. Hope this helps.

Fanboy

Bit of a grey area....

His/her NCB will not be affected, if he/she has it protected.

However, his/hers premium will be loaded next renewal.

Example, this years premium was 1500....5yrs NCB so insurance costs 800.

After claim, this years premium 2250 (50% load)...5yrs NCB so insurance costs 1600.

Also, if/when changing insurance companies, this will need to be disclosed to new company.

Anan1

Fanboy wrote:

However, his/hers premium will be loaded next renewal.

I find this very hard to believe. Where did you get this information?

bazz26

Fanboy wrote:

Bit of a grey area....

His/her NCB will not be affected, if he/she has it protected.

However, his/hers premium will be loaded next renewal.

Example, this years premium was 1500....5yrs NCB so insurance costs 800.

After claim, this years premium 2250 (50% load)...5yrs NCB so insurance costs 1600.

Also, if/when changing insurance companies, this will need to be disclosed to new company.

Doesn't this defeat the purpose of protecting the NCB?

Fanboy

bazz26 wrote:

Doesn't this defeat the purpose of protecting the NCB?

Hardly, i thought the example would show the benfit of still have the five yrs. Had the NCB not been effected then he would have been back to 2 yrs, and insurance would have costs 2000, instead of the 1600.

The figures are for example, i'm not totaly sure on the percentages for discounts.

Anan1 wrote:

I find this very hard to believe. Where did you get this information?

I work in one of the bigger insurance companies. I can't say for certain if this is the way FBD works, but its the way it works for most.

Hence why they say 'NCB protection' and not 'Policy Protection' or 'Premium Protection'

Anan1

Fanboy wrote:

I work in one of the bigger insurance companies. I can't say for certain if this is the way FBD works, but its the way it works for most.

Hence why they say 'NCB protection' and not 'Policy Protection' or 'Premium Protection'

I just rang FBD again, and they assured me that this was not the case with them. All the same, i'm starting to think i'd like to see that in writing...

jayok

Fanboy wrote:

Example, this years premium was 1500....5yrs NCB so insurance costs 800.

After claim, this years premium 2250 (50% load)...5yrs NCB so insurance costs 1600.

Also, if/when changing insurance companies, this will need to be disclosed to new company.

That's my understand of it too. When I looked at claiming for a write-off in 2003 I rang my insurance co then (Hibernian) and this was the process that they explained to me. My base insurance at the time was about €1,900 but I had 50% NCB. As such was paying €850. If I claimed my base went from being assessed as no-claims risk to a claimant as such it would have been a about €3,000! With 50% intact my insurance would have been €1,500. As such I would have seen a €650 increase for the next five years (€3,250). I figured as the car was estimated to be about €5000 (even though I reckoned and insured it for €10k) then cost of paying for the next 5 years and other difficulties wasn't worth claiming.

Motor insurance is a funny thing - most people don't seem to actually get what they think they will get. (personal opinion)

kenco

Hope this helps!

I had a claim last year (I have 50% NCB and bonus protection).

When I renewed the premium for this year was in around the same as previous years but my ability to continue with bonus protection was removed for the next 3 years. Therefore while the premium is unlikley to change for the 3 years (assuming no claims) it will rocket if a claim occurs

mik_da_man

Anan1 wrote:

I just rang FBD again, and they assured me that this was not the case with them. All the same, i'm starting to think i'd like to see that in writing...

Yep that is what I understand from making a claim with them.
Someone Keyed my car and I claimed off the insurance - cost about €650 to repair :eek:
I paid the excess of €120 and that said that's the last I would hear about it and it would ont affect my premium next year.
As far as I remember when I got my insurance they were the only company offering this.
Any amount of claims of any € amount would not affect my insurance
Mik

JohnCleary

He went in today to sort things out. They said his full NCB is protected, and I advised him that if he does change insurance next year there may be a slight loading as he will have to say "Yes" if they ask if he's claimed in the last X years.

FBD were very quick to sort things out, had a claim number instantly, he's happy as both parties cars' are going into the workshop tomorrow

ss-ss-ss

Fanboy is completely wrong, I work in insurance, if you have protected NCB it means that your premium wont go up due to a claim on the policy ie you are still getting you claims free discount. The only time you might come across a problem is if you are switching insurers, it is at the new insurers discression to accept the full discount or to consider the claim and quote accordingly. Always mention a claim if getting a quote even if the bonus is protected, avoids complications down the line!

oldyouth

Fanboy wrote: »

Bit of a grey area....

His/her NCB will not be affected, if he/she has it protected.

However, his/hers premium will be loaded next renewal.

Example, this years premium was 1500....5yrs NCB so insurance costs 800.

After claim, this years premium 2250 (50% load)...5yrs NCB so insurance costs 1600..

Not correct. Needs no further comment