loader
 

Terms and Conditions for "No Claims" and "Loyalty" Discounts:

 
  1. The base rate shall apply to all cases where the policyholder is neither eligible for No Claims Discount (NCD) nor is there a history for claims (for example, new insureds).

  2. The Company shall be committed to grant a "No Claims Discount"  to those eligible customers, as of 24/6/2018 according to the following percentages:

    In case of claims free record for the duration of: TPL NCD Comprehensive NCD Revised TPL NCD after one claim Revised Comprehensive NCD after one claim
    One year 10% 15% 0% 0%
    Two years 20% 25% 0% 0%
    Three years 30% 35% 10% 15%
    Four years 40% 50% 20% 25%
    More than four years 50% 60% 30% 35%
     
  3. These terms and conditions shall apply to the following insurance categories, which have the right to enjoy the NCD and the "loyalty" discount:

    • Compulsory insurance for individuals
    • Comprehensive insurance for individuals
    • Scheme insurance (Compulsory and Comprehensive) priced on an individual basis

These discounts will not be applied to all types of insurance of other vehicles not mentioned above.

  1. The pricing structure shall be as follows:

    • A base rate including the effect of all rating factors
    • Discounts including but not limited to NCD and Loyalty Discount to apply on the Base rate
    • Loading for past accidents to apply on the Base rate
  2. The pricing of insurance products for the above-mentioned categories shall be based on the rules and regulations approved by the Saudi Arabian Monetary Authority (SAMA). The Company shall have the right to amend these prices whenever technical and commercial reasons are available to do so, provided that they do not violate the pricing criteria adopted by the regulatory authorities.

  3. The method of pricing, NCD discount granted, and loading for claims history depends on a number of factors related to the insurance characteristics of the insured vehicle, including but not limited to its location, as well as those related to the owner and / or driver(s) of that vehicle and the premium may vary from one person to another based on the presence of such factors or their absence.

  4. Any taxes (for example, Value Added Tax) will be in addition to the final premium after all relevant rating discounts and loadings.

  5. In case the customer replaces or purchases another vehicle, the NCD for the replacement vehicle or the additional vehicle shall be determined as per the table above.

  6. These terms and conditions shall apply to the insurance record of the insured owner / named driver(s) in the period in which that vehicle was owned / used by the insured / driver(s) applying for insurance.

  7. There should be no interruption between the periods / years of insurance on the vehicle itself for a period more than 30 calendar days, else the NCD will be lost.

  8. If there is more than one vehicle owned by the same customer, all such vehicles must be insured; otherwise the NCD will not be applied to any other non-insured vehicle of the same owner.

  9. The Company shall have the right to inspect the applicant's insurance record in the relevant databases maintained by other licensed entities –for example, Najm Insurance Services Company –provided that the applicant agrees in writing or electronically to do so.

  10. In order to get the discount when applying for vehicle insurance, the applicant may attach an evidence of NCD from the previous insurance company / companies. The evidence must be typed, signed or stamped by the issuer or by the insurance companies’ database.

  11. If there is a discrepancy between the above two sources for NCD eligibility, the data provided by the policyholder shall be used to determine NCD eligibility, unless the insurance company can demonstrate that such information is false.

  12. The Company may refuse to grant the applicant a "no claims" discount in the event that the customer fails to provide a proof of his entitlement to such deduction and he shall have the right to be provided - in writing - with the reasons that led to such refusal.

  13. The customer has the right to request "proof of no claims" by visiting one of the Company branches or points of sale located throughout the Kingdom. It can also be obtained electronically through the Company's website: www.der3.com . In all cases, the Company must provide the customer with the required proof within a period not exceeding three (3) working days.

  14. A driver / drivers of a vehicle should be named in the policy underwriting stage, as each will earn his / her own record of NCD during the period of the policy. Accidents where responsibility lies with an unnamed driver will affect the NCD eligibility / accident record of the policyholder (and not the unnamed driver). The NCD granted will be based on the lowest eligibility of NCD among any of the policyholder and the named driver(s). The accident loading granted will be based on the highest loading applicable among any of the policyholder and named driver(s).

  15. Claims that count against the record of NCD shall be claims where the share of responsibility for an accident exceeds 50%.

  16. The NCD may not be transferred from one individual to another.

  17. If a cost of claim is less than the excess so that the net cost to the insurance company is zero, then the NCD should not be lost. A policyholder may choose to pay for a claim in order to preserve his / her NCD eligibility.

  18. In case the customer renews his insurance with Arabian Shield Company, he shall be entitled to an additional “Loyalty” discount of 10% of the final installment provided that the insurance is not interrupted for a period of more than 30 calendar days.

  19. The Company shall have the right to refuse to grant the customer a "Loyalty" discount if there are reasons to justify it and the customer shall have the right to be provided – in writing - with the reasons that led to such refusal.