What is NCB Protector in Car Insurance?
The reward (bonus) a car owner gets from their insurer for not raising any claim in a policy year is referred to as a No Claim Bonus. It accumulates every claim-free year, which leads to a substantial discount (up to 50%) on car insurance renewal premium the next year. However, this NCB gets nullified in case a policyholder makes a claim. To ensure that this bonus isn't reset because of a necessary claim, an NCB protector cover is required.
The NCB protection add-on cover is an additional coverage in car insurance that protects the NCB even if the insurer has made a claim during the policy year. The policyholder gets the same slab of per cent in the next year as well. This discount can be as high as 50%, depending on the number of claim-free years.
Usually, a policyholder can save his/her NCB up to 1 claim per policy tenure. Since the ncb protection is an optional cover, it can only be bought with a comprehensive car insurance policy or a standalone own-damage cover at an additional premium.
Benefits of NCB Protect Cover
The NCB Protect cover in car insurance comes with some great benefits. These include:
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Nominal Premium
An NCB Protect add-on can be purchased at a nominal premium at the time of new policy purchase or car insurance renewal. By paying a small premium upfront, policyholders can get a huge discount at the time of policy renewal without any fear of making claims.
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Discounts Intact
The reward or discount offered under NCB gets nullified once a policyholder raises a claim. However, with the help of NCB Protect cover, the policyholder can overcome this issue and keep his discount intact even after raising a claim during a policy year.
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Ease of Purchase
Purchasing NCB Protect cover online is easy and hassle-free. Moreover, if you have missed purchasing it at the time of policy purchase, you can still purchase car insurance with NCB protection while renewing your policy.
Why Opt for NCB Protect Cover?
NCB is a reward given by insurers for driving responsibly. So, if you don't raise a claim during a policy year, you become eligible to receive a discount on the renewal premium. However, accidents happen unknowingly, and in such situations, raising a claim is the only option to get covered for the damages to your car. But as soon as you raise a claim, your NCB becomes zero.
Here, the NCB Protect cover acts as a shield and protects your accumulated discount even after raising a claim. Thus, NCB Protect can be a very useful and lucrative addition to your comprehensive car insurance policy.
When is NCB Protection Cover Not Applicable?
The NCB protection cover will not be applicable in certain scenarios as mentioned below. It's important to read the fine print of any motor insurance policy to know what will not be covered.
- Exceeding the number of claims allowed under the NCB Protector add-on will make the insured ineligible for the no-claim bonus
- The car policy must be renewed within 90 days of the expiry or as stipulated, or the NCB will drop to zero.
- Mid-term inclusion or removal of the NCB protector is not allowed by most insurers
- Another scenario in which the NCB protection cover will not be applicable is if you do not get the vehicle repaired in a network/authorised garage
- The NCB will be cancelled if any fraudulent OD claims or any misrepresentation of facts regarding a claim have been made.
Please note that the extent of coverage and other benefits of NCB protection in car insurance vary from insurer to insurer. It is important to compare different policies thoroughly before zeroing in on a policy. To get a better idea, don't forget to compare different policies at Policybazaar.com.
How Much Does the NCB Protection Cover Cost?
Car owners can purchase the NCB protection cover with a comprehensive or own damage car insurance plan. The cost of the NCB protection add-on cover in car insurance typically ranges between 5% to 10% of your overall premium amount.
Remember that since the NCB protection cover is an add-on, you cannot purchase it as a standalone cover. You must carefully go through the terms and conditions of your insurer to know the exact cost of the NCB protection add-on. The price can vary depending on the insurer and your vehicle details.
Who Should Opt for the NCB Protection Add-on Cover?
You should opt for NCB protector in car insurance if you:
- Have an Accumulated NCB: It is ideal to opt for NCB protection cover if you have a claim-free record for many years, a significant accumulated NCB, and you might need to raise a claim.
- Live in an Accident-Prone Zone: If you live in an accident-prone or high-risk area with higher chances of making a claim, NCB protection in car insurance is a must-have.
- Own a Luxury Vehicle: Since high-end or luxury cars have expensive repairs or replacements, the NCB protection cover can help you retain the accumulated NCB even after you make a claim.
How to Purchase NCB Protection Cover Online?
To purchase NCB Protect cover, a policyholder can visit Policybazaar Insurance Brokers Private Limited at the time of policy purchase or renewal and follow these steps:
- From the homepage of Policybazaar.com, select the "Car Insurance"tab
- Enter your car number or select the "Brand New Car"option
- Enter your car make, model, variant, fuel type and registration year
- From the given car insurance plans, select the desired comprehensive or OD plan,
- Now, from the "Addons and Accessories"tab, select the "NCB Protect"addon
- Once you have selected the addon, your insurance premium will increase
- Now pay the premium via the online payment mode
- After premium payment, your car insurance policy document, along with the NCB addon, will be mailed to you.
