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

What Is No Claim Bonus (NCB) In Car Insurance?

Published On May 07, 2021, Updated On Jul 28, 2021

Read along to know what is no claim bonus or NCB in car insurance.

The term NCB stands for 'No Claim Bonus.' It is a form of benefit offered by car insurance companies to consumers who do not file a claim during the policy year. When the insured individual renews their policies in the next policy year, they will receive a discount on their premium.

What Is No Claim Bonus (NCB) In Car Insurance?

What Is No Claim Bonus In Car Insurance?

Your car insurance provides you with a unique advantage by allowing you to cover your premium. You may wonder how it works.

It's more like a reward scheme. If you have made no claims during your first policy year, you'll get a 20% NCB discount. Because of your second consecutive year of making no statements, you continue to earn an additional 5%. This will cause a 50% decrease in your sixth consecutive year. To summarise, the better driver you are, the better you protect your car, and the better it works out in the long run for you.

Benefits of NCB 

  • Provides Positive Incentives: The NCB is nothing more than a way of rewarding you for being a successful and responsible driver and car owner.
  • Connected To You, Not Your Car: NCB is linked to you as an individual, not your vehicle. This means that no matter what car you have, as long as you have been renewing your car insurance policies before they expire, you will continue to earn a NO Claim Bonus.
  • Lower Car Insurance Premiums: Everybody loves this profit! Discounts are available! Your annual car insurance premium would be reduced by at least 20% if you have a No Claim Bonus.
  • Easily Transferable: Whether you're switching insurers or cars, converting your NCB is a quick and painless operation. The only thing you must be certain of is that you change your policy before the new one expires.

What Is The Procedure For Obtaining An NCB Certificate?

The next issue about NCB is how to receive a NCB certificate. The policyholder receives an NCB certificate after purchasing an insurance policy, and it is now up to the policyholder to determine whether to make any claims within the policy year. If he applies, he will not be eligible for the NCB benefit for the next year; but, if he does not apply for the whole year, he will be eligible.

Necessary Documents for NCB Transfer

In terms of documentation, you must apply the following documents with your application:

  • Copy of the delivery note you got for the old car's sale
  • Copy of the old car's insurance policy
  • Copy of the booking form you got when you bought the car
  • No claim bonus will be transferred to the new car after the above documents are submitted. The customer will get a discount on the insurance rate for the new car based on his or her current NCB certificate.


You may apply for a no claim incentive transfer if you purchase an old car from a dealer or a third-party and the car is qualified for NCB. In this situation, what you have to do is notify your insurance company of the sale of your old car and request that your NCB be transferred to the new vehicle.

Read More: 

Tips To Avail No Claim Bonus For A Car Insurance Policy

Benefits of No Claim Bonus Protection Add On Cover In Car Insurance

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.

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