RSA To Offer Safe Drivers Lifetime No-Claims Bonus

October 22, 2001

Royal & Sun Alliance’s “More Than” Unit became the first U.K. insurer to offer safe drivers a plan to keep their no-claims bonus for life.

Under the terms of the plan announced Friday existing customers who have had no claims for the last four years will be offered the the opportunity to participate in the plan at their next renewal. New customers with a driving record of no more than two accidents in the last four years which were not their fault will also be able to participate in the plan if they choose.

The idea originated in Australia in 1994, and is somewhat controversial.

RSA indicated that it was a reward for safe drivers, and recognized that even the safest can have an occasional accident. Others criticized the plan as a sales gimmick that carried higher premiums, and could actually encourage unsafe driving if motorists no longer had to worry about losing their no-claims bonus after an accident.

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