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No Claim Bonus Accumulation Calculator

Work out no claim bonus accumulation instantly with clear inputs, formula shown and shareable results.

About No Claim Bonus Accumulation Calculator

A cumulative bonus increases the sum insured by a set percentage for each claim-free year, up to a cap, at no extra premium. Making a claim usually resets or reduces the accumulated bonus, which is why small claims are often worth funding yourself.

Formulas

Accrued bonus rate

Rate = min(Bonus per year x Claim-free years, Cap)

Effective sum insured

Effective = Base sum insured x (1 + Accrued bonus rate)

Worked example

With the default values below, No Claim Bonus Accumulation Calculator returns Effective sum insured with bonus of $700,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Base sum insured
500,000
No-claim bonus added per claim-free year
10
Consecutive claim-free years
4
Maximum cumulative bonus
50

Results

Effective sum insured with bonus
$700,000.00
Cumulative bonus
$200,000.00
Cumulative bonus rate
40.00%
Further claim-free years to reach the cap
1

Step by step

  1. 1Values used
  2. 2Accrued bonus rate
  3. 3Effective sum insured
  4. 4Effective sum insured with bonus= 700,000.00
  5. 5Cumulative bonus= 200,000.00
  6. 6Cumulative bonus rate= 40.00
  7. 7Further claim-free years to reach the cap= 1

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Does one claim wipe out the whole bonus?

It varies. Some policies reset the bonus to zero, others step it down by one year's worth. Check the wording before claiming a small amount.

Is the bonus the same as a premium discount?

No. In health insurance it usually increases cover; in motor insurance the no-claim bonus is a premium discount instead.

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