Annual TravelInsurance- Why is there not a no claims bonus

88Sarah

When you take out a Car Insurance Policy and don't claim you receive a no claims bonus/discount with an increasing percentage discount every year up to 70%. However when you take out an annual travel insurance there does not seem to be any no claims benefit. Why is this so. It is particularly unfair on people who have a pre existing condition. Consequently there annual premium is raise considerable but if they do not claim for years they still have to pay the inflated premium. Some Home Insurances like Saga also offer No claims discounts.

Ganga

88Sarah wrote: »

When you take out a Car Insurance Policy and don't claim you receive a no claims bonus/discount with an increasing percentage discount every year up to 70%. However when you take out an annual travel insurance there does not seem to be any no claims benefit. Why is this so. It is particularly unfair on people who have a pre existing condition. Consequently there annual premium is raise considerable but if they do not claim for years they still have to pay the inflated premium. Some Home Insurances like Saga also offer No claims discounts.

Whilst i completly agree with you i suppose that the thinking behind it would be with older people the risk increases with age so discounting it year on year would not work on their business model

WAYT

I get a renewal discount of at least 10%

onomatopoeia99

No claims discount is simply a promotional tool used by vehicle insurers. If travel insurers think it will increase the profitability of their business, they will introduce it too.

There is no statutory right to any kind of no claims discount on insurance.

Dean'sDilemma

I fully agree with the originator. My brother had a Heart Valve repair 3 years ago and was in mind correctly was charge a significant supplement for his travel insurance as at that time there was obviously a higher risk certainly for the first year. Now over 3 years has passed. He has been on a number of holidays and never claimed for anything off his travel insurance. he has an annual check ups at the hospital as a precaution. He has been told he is fine and been given a letter to this effect. However the insurance company will not reduce his premium If a no claims policy had been in existence his premium would have reduced.

bap98189

I suspect it is because of the very low level of claims. I suspect the vast majority of travel insurance policies are never claimed on, so essentially almost everyone would end up with a NCB.

Also, with vehicle insurance, the probability of a claim is to some extent down to individual behaviour. With travel insurance it really isn't. It's far more down to random chance than anything else.

sheramber

If A NCB was given premiums would be higher for everybody in the first place.