In non-life insurance policies, claim effects premium.
If the claim experience is bad then a loading in charged in form of extra premium and by incorporating excess, deductables, exclusinos and other warranties. In some cases the earlier Cummulative Bonus(CB), No Claim Bonus (NCB) is reduced and/or withdrawn total on account of bad claim ratio/experience.
But where there is No Claim, the policyholder is given benefit of good claim experience in form of CB/NCB or by reduction in premium or by enhancement of Sum Insured @ 5% or 10% without any additional premium.
But most interestingly when a claim is filed under Motor insurance policy and the claim is addmitted but not payable because of excess, deductables and depreciation, the benefit of NCB is reduced and made ZERO hence the insured has to decide, filling of which claim will be in his interest. He may opt to withdraw his claim to mentain the earlier enjoyed NCB.
