Statement of No Loss

A Statement of No Loss (sometimes called a “No Loss Letter” or “Confirmation of No Claims”) is a document from an insurance company or the insured, that confirms no claims were made on a policy during a specific time. This can also be obtained from the insured when reinstating a policy after a lapse. In the USA, it is common practice to obtain a statement of no loss while reinstating a P&C insurance policy that has been canceled. This statement, however, is provided by the insured

Here’s why it’s useful

Proof of a clean history: Shows you haven’t made any claims, which can help you get lower premiums when renewing or switching insurance, or even when applying for loans. Reinstating a policy: In the USA, it can be used to reinstate a canceled policy by showing the insurer that you didn’t have any losses while the policy was inactive.

What it includes

• Your information (name, policy number, etc.)
  • The period it covers
  • Confirmation of no claims
  • Insurer’s information

In India, it is common to get No claim confirmation from the previous insurer on vehicle insurance to get ‘No claim bonus’ in the current policy. It is the same concept applied here to get statement of no loss especially for reinstatement of a policy in USA. Only difference is that ‘Statement of no loss’ for reinstatement is provided by the insured.