No Claim Bonus (NCB) in Car Insurance

NCB in car insurance refers to ‘No Claim Bonus.’ It is a type of reward offered by the car insurance company to the policyholder on the own-damage (OD) premium amount for not raising any claim during the policy term. NCB is a discount on your car insurance premium that you can avail at the time of renewal of your car insurance policy. The NCB discount percentage ranges between 20%-50% depending on the number of claim-free years.

NCB Calculation for Car Insurance

Below table will show you the NCB slab on the number of claim-free years:

NCB in car insurance is available if the policyholder has not made a single claim during the entire policy tenure. In case the policyholder makes even a single claim, he/she will not be able to avail NCB. However, with the help of an add-on cover namely NCB Protect, available under car insurance policy, the policyholder can keep his/her NCB intact even after he/she has made a claim during the policy tenure, subjected to terms and conditions of the insurance company.

Benefits of No Claim Bonus in Car Insurance

Highlighted below are few NCB benefits to car owners under the car insurance plan:

1. Offers Rewards: NCB rewards you for being a responsible driver and keeping your car in a proper condition. Therefore, in a way you can get rewards through No claim bonus by not filing for claims during the previous years.
2. Low Premiums: At least 20% of your car insurance premium yearly can be earned by the policyholder through NCB. Discount percentage for NCB is offered to the policyholder for every claim-free year.
3. Portable: The NCB benefit can be ported to another car in case you change your vehicle. Additionally, it can be ported from one insurance company to another if you decide to purchase insurance from some other insurance company.

• All car owners
• New drivers
• Car owners who wish to save the reward for not making much claims.