No-Claim Bonus in Insurance: What It Is and How to Earn It in Nigeria

In Nigeria, many people see insurance as just another expense, especially when they never file a claim. But what if not making a claim actually saves you money?

That’s where the No-Claim Bonus (NCB) comes in. It’s one of the smartest and least-talked-about benefits in insurance, and if you’ve never heard of it, this post is your plug.

Let’s break it down in simple terms 👇

What is a No-Claim Bonus (NCB)?

A No-Claim Bonus is a discount your insurer gives you for being a “low-risk” client. It’s a reward for going through an entire policy year without making any claims.

In other words:

You didn’t crash your car? You didn’t lose your gadget? You stayed safe?
🏆 You get rewarded with lower premiums next year.

How Does It Work in Nigeria?

While more common in motor insurance, some health and gadget insurance policies also offer NCBs. Here’s a basic example using motor insurance:

• Year 1: You buy comprehensive car insurance at ₦120,000

• You don’t make any claims that year

• Year 2: Your insurer gives you a 10–15% discount → you now pay ₦102,000 or less

This reward grows with each claim-free year — up to 50% discount with some insurers!

Why Do Insurers Offer No-Claim Bonuses?

Insurance is based on risk. If you haven’t cost the insurer any money, you’re seen as a lower risk. Giving you a discount is a win-win; it keeps you loyal and reduces their future risk.

What Kind of Policies Offer NCBs in Nigeria?

✅ Motor Insurance (especially comprehensive plans)
✅ Gadget Insurance (for phones, laptops, etc.)
✅ Health Insurance (with some HMOs or private plans)
✅ Property Insurance (on a case-by-case basis)

💡 Note: Third-party motor insurance doesn’t typically offer NCBs because it’s already at a fixed, regulated price.

How to Qualify for a No-Claim Bonus

1. Don’t file unnecessary claims – Minor dents or cracked screens? Sometimes it's cheaper to fix them without filing a claim.

2. Drive or live safely – Less risk = more chances to keep that bonus.

3. Renew with the same insurer – Switching providers might mean starting from scratch.

4. Ask about NCB upfront – Not all insurers in Nigeria offer it automatically. A good broker will tell you if your policy qualifies.

How PRA Insurance Brokers Can Help

At PRA, we educate our clients about all their options, including hidden gems like NCBs. Whether you’re insuring your car, health, or devices, we’ll guide you on how to:

• Maximize your no-claim bonus

• Save money on renewals

• Choose plans that reward your safety

Final Thoughts: Don’t Leave Money on the Table

If you’ve never made a claim, you deserve more than just peace of mind; you deserve a reward.
And if your insurer isn’t offering a No-Claim Bonus, it’s time to ask why.

📞 Talk to us at PRA Insurance Brokers to learn how to start saving smarter.