Club Marine eNews

Unravelling insurance-speak

Unravelling insurance speak

Unravelling insurance-speak: no-claim bonus discount and protection points
Insurance-speak can be a little tricky to comprehend at times, with some terms sounding too technical or as dry as a cracker in sand. For example: no-claim bonus discount, and protection points.

A ‘no-claim bonus discount’ is Club Marine’s way of rewarding members who have never needed to lodge a claim. The way it works is actually quite simple.

When a member signs up a new policy and has never had a pleasure craft claim in the preceding five years*, we can automatically give our top no-claims bonus discount, Rating 1, which is a 25 per cent discount on the new policy.

Then, each claims-free year as a member with us, you will earn a ‘protection point’. After being insured for five years with no claim, the member receives five protection points. For each consecutive year that the member remains claim-free after that, they receive further protection points. So, say you’ve been insured with Club Marine for eight years and have never had a claim – you have eight protection points and you enjoy a 25 per cent discount on your policy.

Now for the interesting bit: if you have five protection points (or more) and lodge a claim, Club Marine takes away five protection points – but you still get to keep your 25 per cent discount. So, for each batch of five points, members keep their discount because the points ‘protect’ it.

What happens if you don’t have five protection points in your stash and make a claim? That would mean your premium will be reviewed at the next renewal, with consideration given to your claim activity, and your protection points will reset to zero.

If you’d like to know more, check out our website or call us on 1300 00 CLUB (2582).

Any discounts offered are applied to our standard rates. Promotional or other discounts may apply from time to time. Minimum premiums may apply. Any discounts/entitlements only apply to the extent any minimum premium is not reached. If you are eligible for more than one, we also apply each of them in a predetermined order to the premium (excluding taxes and government charges) as reduced by any prior applied discounts/entitlements. To qualify for the maximum no claim bonus of 25%, customers must have had no pleasure craft insurance claims in the preceding five years. However, customers who have had up to two claims may still qualify for reduced no claim bonus. Discounts are available at the time of printing and subject to change without notice.