Know About The No Claim Bonus Under A Car Insurance Policy
Published On Jan 20, 2022 11:00 AM By InsuranceDekho
The term "No Claim Bonus" is abbreviated as NCB. Read along to know eerything about No Clam Bonus under a car insurance policy.
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The insurance company rewards customers who do not file a claim during the policy year with a No Claim Bonus. Every year of claim-free service earns you a bonus that runs from 20% to 50%. The NCB-accrued proportion of the benefit provides a discount on the following year's premium. This incentive will be null and worthless if a single claim is filed between policy years or if the automobile insurance policy is canceled.
What Is A No-Claim Bonus In A Car Insurance Policy?
During the insurance time, you drive carefully for a year and make no claims. It's time to renew your insurance coverage because your current one is going to expire. Your insurer recognizes your safe driving record and wants to thank you for not filing a claim. As a result, while renewing your coverage, the insurer provides you with a discount. A bike and auto insurance No Claim Bonus is the phrase for this award.
NCB Benefits in Car Insurance
The following are the most important advantages of NCB:
NCB can assist you in getting a policy renewal discount. This implies you'll pay a lower premium than if you'd filed a claim during the policy's term.
If you follow the guidelines, NCB will be incremental. As a result, if you do not file a claim for five years in a row and renew your policy on time, you can save a lot of money on your policy renewal.
NCB is linked to the person who owns the vehicle, not to the vehicle itself. If you want to sell your old (insured) automobile and purchase a new one, you can carry forward the NCB. If you decide to switch insurers, NCB will follow you.
What Is NCB and How Does It Work?
NCB functions in the same way as any other bonus should. It serves as both a reward and a motivator to continue delivering excellent results. Insurers encourage you to drive safely and discourage you from filing claims by giving the NCB in auto insurance. An automobile insurance policyholder will be more hesitant to file claims for minor concerns if this is the case.
What Is the Role of NCB in Car Insurance?
Because car owners spend a significant amount of money on comprehensive car insurance during the life of the vehicle, NCB is vital in auto insurance. The higher the car's value, the higher the insurance premium. NCB is a crucial feature for automobile owners because it helps to lower premiums.
When Does the No-Claim Bonus Apply?
Only the 'Own Damage Cover' component of your automobile insurance policy is eligible for the No Claim Bonus at the time of policy renewal. The damage done to the insured vehicle is referred to as "own damage." The Third-Party Automobile Insurance Coverage is another component of car insurance that is required by Indian law. When the covered automobile causes a serious accident in which third-party property is destroyed or a person is harmed, this coverage is advantageous. A comprehensive automobile insurance coverage provides financial protection against damage to the covered car. As a result, NCB only applies to Comprehensive policies, not Third-Party Liability policies.
You may add extra padding with an NCB Protect cover. Even if certain claims are filed (depending on the terms and circumstances) within the policy period, the bonus component remains intact. Regardless of whether or not you make a claim (or claims) during the policy period, you can get a renewal discount if you choose NCB protection.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.