Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

What is NCB? Explain its Benefits

Updated On Oct 18, 2023

What is NCB? Explain its Benefits

No Claim Bonus is known as NCB. In most cases, you can receive an NCB discount on the premium when you renew your insurance coverage. It is the incentive provided by auto insurance companies to owners of insured automobiles if they refrain from making any claims during the policy's duration. When the policy is renewed the following year, this incentive can be used as a discount on the price of auto insurance.


What Does NCB Actually Mean?

Let's use an example to better grasp this. Throughout the duration of the auto insurance policy's validity, you maintain a year of safe driving and make no claims. Your present insurance policy's term is going to end, so you need to renew it.

Your insurance provider wants to give you a discount for not making a claim because they appreciate that you drive defensively. Therefore, the discount you receive from the insurer when you renew your insurance is known as the Car Insurance No Claim Bonus.

 What is NCB? Explain its Benefits

How Can I Take Advantage of NCB?

The NCB under a comprehensive vehicle insurance policy provides automobile owners several benefits, including:

  • Discount on Premium - No Claim Bonus is recognised as proof of one's capacity for responsible driving and maintenance of the insured vehicle.

The policyholder might therefore earn rewards in the form of NCB by not making any claims during the previous period of his insurance.

  • Lower Premium - Thanks to the No Claim Bonus, a policyholder can save between 20% and 50% on the price of his auto insurance. The policyholder receives the NCB discount percent for each year without a claim. He might be able to lessen the rate he must pay when his auto insurance is renewed with the use of this discount.
  • Greater Savings - The proportion of NCB will increase if all requirements are met. Those who haven't made a claim in five years are eligible for a significant discount on their premium of up to 50% when the policy is renewed.
  • Who is Insured? It's important to keep in mind that the NCB is given to the policyholder/car owner and not the vehicle. Therefore, the NCB remains with him whether he buys a new automobile or sells his insured vehicle so long as he maintains renewing auto insurance policies. It won't stick with the car if it changes hands.
  • Transferable to Another Car/Insurer - The No Claim Bonus can be easily transferred to a new car if the policyholder changes cars. It can also be changed from one insurer to another if the owner of the car decides to obtain insurance from a different motor insurance provider. The policyholder needs an NCB Certificate from their previous insurer in order to transfer the NCB.

Important Points About NCB to Remember

Third-party auto insurance, which is the minimum legal requirement, is not eligible for the NCB discount. Third-party liability insurance premiums typically account for up to 20% of the total premium.

Therefore, the third-party responsibility premium will be deducted from the total premium to arrive at the earned NCB percentage. Understanding this is important since many auto owners frequently wonder if there has been a mathematical error after calculating the NCB on the total premium and concluding that they have received an insufficient reduction.

The outcomes could be severe, even if you transfer your insurance policies with good intentions but unintentionally enter any sum for NCB. If you declare your NCB inaccurately, your insurance provider may fully reject your motor insurance claim. If you are changing your auto insurance coverage, be sure to mention any claims you may have had with your old insurer during the preceding policy year.


It is clear that NCB is a tool that a policyholder might use to lower his future auto insurance prices from an insurance provider. When selecting a car insurance coverage, it is important to carefully assess whether this NCB option is available.

Also read: How Does Aesthetic Modelling Affect The Premium Of Car Insurance Policy?

What Are Network Garages In Car Insurance?


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.

Explore more before buying Car Insurance

    must dotmust graphics

    Why to buy from InsuranceDekho?

    • Instant policy # within 5 mins
    • More than 45 Lac happy customers
    • Claim Support available all 7 days of the week

    People Also Read