What is acceptable as proof of no claims bonus?
Most insurers only recognise a no-claims bonus up to a certain number of years from the expiry date of the previous policy that it was used on. There may also be restrictions on the type of vehicle that a no claims bonus was earned on, and also the country that the no claims bonus was earned in.
They also cap the discount you can receive after a certain number of years.
What should we check?
On a no claims bonus, we must review:
- Name, address and registration of car match the risk details the customer has purchased with us (if something is different then it needs investigated further).
- Policy number and insurance company the bonus is coming from.
- The no claims bonus matches what we have incepted the policy on.
- Date of inception of the policy and the expiration (as the policy cannot be live in order to transfer the no claims bonus to the new insurer unless you are taking out a second car insurance policy).
- Any claims that are on the bonus match our risk details including date and fault/non fault status
What to do if the car on the no claims bonus does not match the car that is insured with Stroll?
If the car that is detailed on the proof of no claims bonus does not match the car that is insured with Stroll, we will need to verify that the car that is detailed on the no claims bonus is not actively using the no claims bonus. You should contact the customer and ask for more detail, including:
- Is the car that is detailed on the no claims bonus still insured?
- If so, if the policy that the car is insured on using the no claims bonus?
- If the car that is being insured was purchased prior to the date of expiry of the no claims bonus, ask the customer if the car was insured on a different policy than the no claims bonus that is being declared.
- If so, how many years were on that policy?
- If so, were there any claims that may not be declared?
- If so, why is that bonus not being used for this quote?
Further No Claims Bonus Required
Why would we require a further no claims bonus?
The customer may have sent through a no claims bonus that is over two years old. The insurance company requires the no claims bonus to be no older than two years in order for it to be valid. If the no claims bonus is over two years, unless referred to the insurance company, the no claims discount will need amended to 0 years for the cover to remain in place.
The customer’s policy details for the last time they held insurance /current cover ended may be different to what the no claims bonus shows and we need the up to date no claims discount to ensure all details are correct and valid.
Proof of NCB doesn’t match NCB Declared
The no claims bonus sent through may be different to what is on cover. It may be that the previous insurer capped their NCB at 5 years but we have the customer rated on 9 years with their new insurer and they allow discount up to 9 years. Customer may need to contact the previous insurer if we require the full 9 years ncb.
If the NCB does not match the NCB declared and the customer cannot provide us with the correct proof, we will need to adjust the insurance to match the proof.
No claims bonus – Car Registration Number Discrepancy
Proof of no claims bonus received but car registration number does not match Stroll
The details of the car on risk should match the details of the car on the proof no claims bonus (unless the customer has just purchased the car and doesn’t insure any other car in their name / the policy is based on an intro bonus).
What should we check if the car registration number is different?
- Date that the car was purchased on the insurance risk. If the car was purchased before this policy was taken out, then the vehicle registration should be the same.
- This may be a change of registration so check the details of the car, if it is the same car then the no claims bonus is valid.
- This may be a second car if the vehicle details on the no claims bonus do not match, even if this is a new car the proof of no claims could still be currently in use with another insurer. If this is actually a second car policy and it has proceeded online as an earned bonus, the policy would require checks to see if it can stay on cover
- the discount allowed
- if the insurer allows intro bonus
- bonus protection
- the least experienced driver on this policy.
- This customer may not have held car insurance in their name for a period of time and they now have a new car and are using their previous no claims bonus on this policy. As long as they use their earned bonus within two years after the previous policy lapsed, this is acceptable.
Chat Responses - Car Registration Number Discrepancy on No Claims Bonus
Why are you querying the car registration number on my no claims bonus?
The insurer needs more information on the no claims bonus as the registration on your no claims bonus does not match the vehicle on cover which was purchased before the policy incepted.
Break in Cover
What is a break in cover?
- A break in cover is when the expiry date on the proof of the no claims bonus is before the inception date with Stroll on the same vehicle. There has been a period where the car has not been insured.
What is a SORN?
- A sorn stands for Statutory Off-Road Notification and lets the Driver and Vehicle Licensing Agency (DVLA) know that you're registering a vehicle as off the road. Declaring your vehicle off road with a SORN means you'll not be able to drive or park it on a public road.
- The insurance company will accept a break in cover if the vehicle has been declared off the road with a SORN without the customer completing a BIC letter.
What to do if there is a break in cover:
If there is a break in cover, you must complete the follow questions with the customer:
Can you confirm that:
- Your car has not been involved in any incidents that have or may result in a loss whilst it’s been uninsured, is that correct?
- You have no pending police prosecutions, is that correct?
- Your car has been kept at the address you declared in this quote whilst it has been uninsured, is that correct?
- Your car has not been involved in any incidents that have or may result in a loss whilst it’s been uninsured, is that correct?
Alt acceptable question:
Can you confirm that while car reg XXX XXXX has not been insured, the car has not been involved in any accidents or incidents that could arise to claim and has not been stopped by police?
Do insurers accept a break in cover?
General information:
- Insurance companies usually accept a break in cover if it is under 30 days with a self-certified declaration (and hasn’t been SORN). However, each insurance company is different so anything over 14 days needs to be referred directly to the insurer. LV have agreed a BIC less than 30 days is fine as long as the customer has confirmed the break in cover details over the phone. BIC over 30 days requires a signed declaration.
- The break in cover letter is the customer confirming the above points (same as the quote journey).
- After 30 days break in cover, it can be difficult to get insurance if the car has not been sorn but refer case by case to the insurer.
LV:
LV have agreed a BIC less than 30 days is fine as long as the customer has confirmed the break in cover details over the phone. BIC over 30 days requires a signed declaration.
AXA:
- AXA will allow 90 days BIC.
- AXA need a letter from policyholder explaining BIC. If BIC is under three months and there are any named drivers under 25 this must be referred to AXA. If BIC is under three months and all drivers are over 25 and explanation is genuine (not just car off the road) this is OK but still need copy licences for all drivers and letter from policyholder.
What should we check?
On a driving licence, we must review:
- Licence country of origin
- Type of licence (full or provisional)
- Date licence was acquired (date on reverse of licence as the front date will be the last renewal date)
- Date of expiry
- Date of birth
- Full name
- Address
- If there are any convictions noted on the counterpart (may be hand written or typed) and the details of the conviction including whether or not there was a suspension period.
Driving Licence Name Discrepancy
Name on licence doesn't match Stroll
What should we check?
On a driving licence, we must review that the Full name matches the name on the driving licence.
Examples of where they may differ are
- Customer is now married and hasn’t changed her name on her licence - this will not invalidate her insurance but they do need to change it as soon as possible as they need to be the same.
- Customer is known by a different name (e.g. second or shortened name) and used this name for the insurance policy which is different to the name on the licence. We can amend this name on the risk to match the policy once confirmed with the customer.
- Customer or Agent has spelt the name wrong at time of inception of the policy. We can amend this name on the risk to match the policy once confirmed with the customer.
Driving Licence Address Discrepancy and Proof of utility bill
Address on licence doesn't match stroll
What should we check?
On a driving licence, we must review that the address matches the address on the driving licence.
Guidance agreed with LV 10/10/2023:
Driving licence shows different address + NCB shows correct address = contact the customer to confirm we have insured the vehicle at the correct address and advise to update licence, no further follow up
Driving licence shows different address + NCB shows different address = contact the customer to confirm we have insured the vehicle at the correct address, advise to update licence and ask for proof of address (a utility bill, bank statement, payslip dated in the last 6 months)