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No Claim Bonus (NCB) in Car Insurance

No Claim Bonus is a reward provided by the insurance company to policyholders for raising no claim in a policy year. This bonus gets accumulated with every claim-free year and ranges between 20% to 50%. The accrued percentage of the benefit earned as NCB gives a discount on the premium of the next year. However, if a single claim is made in between a policy year or if the car insurance plan gets lapsed, then this bonus will become null and void.

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NCB Add-on in Car Insurance Policy

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:

Number of Claim-Free Years

NCB Offered on Premium

On first time claim-free renewal


On second time claim-free renewal


On third time claim-free renewal


On fourth time claim-free renewal


On fifth time claim-free renewal


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.

Who Should Get A No Claim Bonus Protect Cover?

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

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FAQ About No Claim Bonus Add-on in Car Insurance

  • When can I opt for the NCB add-on in insurance?

    The NCB Protect cover can be opted for either at the time of policy purchase or policy renewal. Also, there are some insurance companies which allow addition of add-on covers in between the policy period.

  • Is the NCB Cover add-on available with a third party car insurance plan?

    No. Like all other car insurance add-ons, the NCB Protect cover is also available with only comprehensive and standalone own-damage car insurance plans and not with a third party car insurance plan.

  • How many claims are allowed with the NCB Protect cover?

    The number of claims allowed with the NCB Protect cover vary from insurance company to insurance company. However, generally up to 2 claims are allowed with the NCB Protect cover.

  • Can I add other add-ons also along with the NCB Protect cover to my car insurance plan?

    Yes, you can add as many add-ons as you wish with the NCB Protect Cover to your standard comprehensive/standalone own-damage car insurance policy.

  • When am I entitled to receive the NCB on the own-damage premium of my car insurance policy?

    The NCB on the own-damage premium of your car insurance policy is available to you at the time of policy renewal.

  • Is NCB benefit provided by all the insurance companies selling car insurance plans?

    Yes, no claim bonus is offered by all the car insurance providers selling motor insurance policies in India. Also, the chances of policyholders making any small or unnecessary claims are reduced as they would not want to risk earning the discounts on premium.
  • Can NCB be used for multiple cars?

    No, no claim benefit cannot be used for more than one car or insurance plan. However, NCB can be transferred from one plan to another.
  • Is NCB cover really necessary for the car owners?

    An NCB cover offers protection to the policyholder even if they have filed for one or two claims during the insurance plan term. They are eligible to get discounts on premiums even after raising a claim.
  • How can I retain my NCB cover if I decide to sell my vehicle?

    If you decide to sell your vehicle and have NCB, then this can be used by you for the next insurance policy by submitting form 29 or a sales deed for transfer of ownership along with the NCB retention certificate to the RTO office. After attesting NCB retention certificate, it can be utilized to get premium discounts on your new car insurance plan.
  • What are the documents required for the transfer of No Claim Bonus?

    Different insurance providers can ask for a different set of documents. However, the documents generally asked for at the time of transfer of NCB are: 1. NCB transfer application 2. Sales Agreement 3. NCB certificate 4. Booking receipt if buying a new vehicle 5. Car Insurance Plan Copy
  • What does the No Claim Bonus (NCB) in auto insurance stand for?

    The No Claim Bonus (NCB), as the name signifies, is basically a reward that is offered to policyholders in terms of discount. Policyholders can avail this bonus at the time of policy renewal, which is applicable on the insurance premium for the next policy year. If you do not raise any claim in an insurance policy year, you become entitled to get a discount, while with every successive claim-free year, the discount accumulates up to 50%. It is the best way to lower the premium in auto insurance without spending anything.

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#Applicable on non-inspection cases i.e. existing policy has not expired or when buying a policy for a new vehicle.