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Tips to Get No Claim Bonus Discounts by Driving Safe in India

Wish

Written by Sharad Bajaj

Updated Oct 14, 2023

Be rewarded with drive safe & get discounts. Know about no claim bonus discounts, which is explained below.

How to Get No Claim Bonus Discounts - As a society, we are always looking for the best bargain available, whether they be discount or offers available with any purchase. The society is getting driven by various discounts and offers on every purchase. The same holds for the vehicle industry, but to avail these discounts one needs to be a prudent driver and should have adequate coverage in their car insurance policy. This can be achieved by purchasing a comprehensive car insurance policy with extended add-on features.

Tips to Get No Claim Bonus Discounts by Driving Safe in India

There are some substantial discounts which are available in your car insurance policy and these are not gimmicks in anyways.

How To Get A Discount By Driving Safe

Car owners can avail various discounts to reduce the hefty premium amount by a certain percentage. Moreover, a car owner who is a skilled and experienced driver can cut down the premium amount by availing special discount by driving safely. One of them is referred to as No Claim Bonus, which is explained below.

What is No Claim Bonus?

No Claim Bonus (NCB) is a type of discount offered by car insurance companies for safe driving. The discount is given on the OD (Own Damage) premium for every claim free year of the insurance policy. One can avail off the discount by merely avoiding over-speeding, following lane conversion, slowing on turns and habits like these. The discount ranges between 20-50% and a policyholder can transfer the bonus from one insurance company to another at the time of policy renewal. Below is the table that explains how much NCB a policyholder can get (As per IRDAI):

Claim Free Years

NCB Percentage

1 Year

20%

2 Years

25%

3 Years

35%

4 Years

45%

5 Years

50%

Apart from the NCB, there are also several ways to get a discount on the premium amount. Some of them are:

By Becoming A Member Of The Automobile Association Of India

Members of Automobile Association of India are eligible for availing a discount on the car insurance premium amount. By mentioning the AAI membership at the time of purchasing a policy can help you to get a significant amount of discount.

By Avoiding Heavy Modifications To The Car

Car owners should avoid heavy modifications to the car if they want to avail discounts on the premium amount. Some people like to customise their vehicle by adding body kits, vibrant colours, powertrain etc. which are not accepted as per the norms. Modifying the car in this way can detain a policyholder in availing a discount.

By Installing Safety Devices Like Anti-theft Device

If a car is protected via an Automotive Research Association of India (ARAI) approved anti-theft device, the insured owner of the car can get a discount of 2.5% (up to Rs. 500) on the OD premium of the policy. The reason is, anti-theft devices make the car less liable to theft and other such risks. Thus, it also reduces the risk borne by the insurance company for the car, which in turn helps in lowering the premium amount.

By Buying NCB Protect Add-on

A comprehensive car insurance policyholder can buy NCB protect add-on, which retains the NCB discount even after the person asked for a claim in the policy tenure. By availing NCB protect add-on, a policyholder can hold the accumulated discounts on OD premium at the time of policy renewal.

Overview

To conclude, if you are looking for a discount when purchasing an insurance cover for your car make sure to follow the above-mentioned tips. The No Claim Bonus especially is an important way to receive a discount on your car insurance premium. It is given as an incentive to the policyholder for their safe driving skills. Additionally, this reward is cumulative in nature. This means that it becomes higher with every passing claim-free year. In the fifth consecutive claim-free year it reaches the maximum reward of 50 per cent. However, it is crucial to not file claims as they disable the reward no matter how small. Hence, it is best to file insurance claims only when the damage is significant. Moreover, you can also save on insurance by buying the NCB protect add-on cover, purchasing and installing anti-theft devices or if you are a registered member of the Automobile Association of India.

Disclaimer: This article is issued in 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.

Wish

Written by Sharad Bajaj

Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. Read More

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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