CIN: U72900KA2018PTC110119

What is No Claim Bonus (NCB)?

No Claim Bonus (NCB) is a reward given by insurance companies to policyholders for not making any claims during the policy term. This reward comes in the form of a discount on the premium for the subsequent year, encouraging safe and responsible driving.

NCB in car Insurance

How Does NCB Work?

NCB works on a cumulative basis, meaning the discount increases with each consecutive claim-free year. Here’s a typical breakdown of how NCB accumulates over the years:

1st year without a claim: 20% discount
2nd year without a claim: 25% discount
3rd year without a claim: 35% discount
4th year without a claim: 45% discount
5th year and beyond without a claim: 50% discount
These percentages can vary slightly depending on the insurer, but the concept remains the same.

Benefits of NCB

How to Preserve Your NCB

Impact of Claims on NCB

Filing a claim typically resets your NCB to zero for the following policy year. However, with an NCB Protector add-on, you can make a specified number of claims without affecting your bonus. This add-on is beneficial for maintaining your NCB status even if you need to file a claim.

Transferring NCB

When you switch insurers or purchase a new car, you can transfer your existing NCB to the new policy. To do this, you need to provide your new insurer with a No Claim Bonus certificate from your previous insurer. This certificate is usually valid for 90 days from the date of policy expiration.

Frequently Asked Questions (FAQs)

Is NCB applicable to all types of car insurance policies?

NCB is typically applicable to comprehensive car insurance policies. It is not applicable to third-party liability-only policies.

Can NCB be transferred to a new vehicle?

Yes, NCB can be transferred to a new vehicle as it is linked to the policyholder, not the vehicle.

What happens to my NCB if I miss renewing my policy on time?

If you fail to renew your policy within the grace period (usually 90 days), you may lose your accumulated NCB.

Can I protect my NCB even after making a claim?

Yes, with an NCB Protector add-on, you can protect your NCB even after making a claim. However, there may be a limit on the number of claims you can make under this add-on.

How do I get an NCB certificate?

You can request an NCB certificate from your current insurer when you decide to switch insurers or sell your car. The certificate will reflect the NCB you’ve earned.

Understanding and effectively utilizing NCB can lead to significant savings on your car insurance premiums over time. By driving safely and avoiding unnecessary claims, you can maximize the benefits of this rewarding feature.

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