A no-claim bonus is a benefit earned for a qualifying period without claims, often used in motor insurance and some health products. It may reduce the renewal premium or increase coverage, depending on the contract. Eligibility, maximum levels, and transfer rules vary between products and markets.
A Nepalese vehicle owner should check how an own-damage claim affects the bonus and whether changing insurers preserves it. A discount does not replace adequate coverage or justify withholding a claim that must be reported. Compare the actual renewal offer rather than assuming a universal bonus percentage.