Insurance Agency Contract with No Claim Bonuss

Traditionally insurance agents are incentivised by payment of a commission on the premium they generate. A bonus payment received by the agent from the insurer, when the insured does not make a claim, is referred to as ‘No claim bonus’ (NCB). NCB rewards the agent for her / his effort in reducing the probability of a loss caused by the insured peril. In case of general (non-life) insurance products, a trained agent can educate the insured about...