Two years ago I had a minor accident when I ran into the back of another car. I reported it to my insurance company as you’re supposed to do. As a result I lost some of my no claims bonus. When I contacted the insurers recently it emerged that the other driver had not put in a claim. Do they have the right to reduce my no claims bonus if no payment was made?
A no claims bonus is just that: your insurance premium is reduced as long as no claim is submitted. Your policy documents will probably state this in black and white, and it is certainly market practice to reduce discounts only as the result of a claim. You should ask the insurers to refund the extra payments you have made as a result of their mistake.