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No Claim Bonus (NCB) in Car Insurance Explained

Published On Oct 25, 2020 8:34 AM By InsuranceDekho

What Should You know about NCB Protector in Car Insurance?

In India, it is compulsory to purchase car insurance at least up till Third Party Liability Insurance or Liability Only insurance in order to legally drive on Indian roads. While this coverage is not really sufficient to meet all the potential damages that may occur, comprehensive car insurance that also covers own damage to the insured vehicle becomes extremely useful and almost impossible to do without. Further to this, many policyholders may choose to purchase add-on covers that strengthen their comprehensive car insurance policy coverage and provide coverage in varied and specific scenarios, giving them an overall more robust policy at an additional premium. Considering all this, the premium costs of purchasing car insurance in India can get extremely high. That is why No Claim Bonus is extremely useful.

What is NCB Protection?

NCB (No Claim Bonus) protection is a feature available in car insurance policies that offers a discount on the premium of the policy at the time of renewal. This discount is given as a reward for prudent and cautious driving, as it is offered only in cases where no claim has been raised during the policy coverage tenure. Therefore, it is a discount in reward for not raising any claim and shaves off a percentage of the premium that is to be paid on the policy at the time of renewal.

It is cumulative in nature. It is increased by 10% after each year of not making any claims. Thus, over multiple years, it can lead to considerable discounts in the premium of policy renewal and save you as the policyholder a lot of money.

It is important to note that it is applicable to you rather than the vehicle. Thus, when you purchase a new vehicle you may be able to apply your previously accumulated NCB onto it. Similarly, if you purchase a new insurance policy, you can transfer your previously accumulated NCB from a different policy. What you are unable to do is transfer it from person to person.

When Does NCB Protection Get Waived?

The scenarios in which NCB Protection would get waived and not be applicable to you as a discount are as follows:

  • When a claim is raised on the insured vehicle during the policy tenure. This would write off your cumulative NCB and you would have to start to accumulate the discount once again from zero.
  • If your policy expires. NCB Protection is only applicable at the time of car insurance renewal. Therefore, if your policy expires before you are able to renew it, you would have to purchase a new one rather than making a renewal, and the NCB protection would not be applicable to it.


NCB Protection or No Claim Bonus Protection refers to a reward given for prudent and cautious driving as it is a discount offered for not raising any claim during the policy tenure. It is extremely useful and beneficial as its cumulative nature will save you a considerable amount of money in today’s world where an increasingly high degree of insurance coverage is becoming necessary.

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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.

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