No Claims Discount in UAE - What is It and How to Make the Best of It?

Last updated on : 15 Mar 2024
3 min read

When it comes to car insurance in the UAE, having a good understanding of 'no claims discounts’ can lead to huge savings on your premiums. In this article we will explore the truths about these discounts, dispel misconceptions and provide insights on how to protect and transfer them.

No Claims Discount - Explained

If you have car insurance you are probably already familiar with the concept of 'no claims discount' or 'no claims bonus.' It's like a reward for being a good driver – the longer you go without making a claim the higher the discount you can enjoy when renewing your policy. Over time accumulating a no claims discount can result in significant savings on your car insurance premium but it’s generally capped at 5 years.

NCD = Stacked Up Savings

As time goes by your no claims discount increases. The longer you maintain a record without any claims the higher your discount will be when it's time to renew your car insurance policy. According to Decision No. 41 of 2017 by the Board of Directors at the UAE Insurance Authority, drivers who have one to three years of no claims experience are eligible for reductions ranging from 10% to 20% upon policy renewal. Insurers can sometimes provide discounts of up to 30% after considering the driver’s risk profile and several other factors such as age, lifestyle and profession.

Transferring Your Discount

A significant aspect of no claims discounts is that they are linked to the driver, rather than the vehicle.

This means that you have the option to carry over your discount when you switch insurance providers or vehicles. Insurance companies make this possible through a 'No Claims Certificate', which they provide at no cost following the regulations set by the UAE Insurance Authority.

Key Takeaways

• No claims discounts are only applicable during policy renewal to get a rebate on your premiums for safe driving.

• The discounts are associated with the driver, not the vehicle.

• If the main driver remains the same you can apply an existing no claims discount to your new car.

• In case of at fault claims, some or all of your discount may be affected. However, no fault claims generally do not impact your discount.

• Each insurance company has its rules and benefits regarding no claims discounts. It is crucial to compare policies before making a decision.


By understanding the intricacies of no claim's discounts, you can make informed choices regarding your car insurance renewals in the UAE. By debunking misconceptions explaining discount protection and highlighting how discounts can be transferred you can optimize both savings and coverage while navigating through the evolving world of car insurance, in this region.

Disclaimer: Shory aims to present accurate and up to date information, however we take no responsibility or liability for any errors or omissions in the content.