NCB or No Claim Bonus refers to the discount given in the form of a bonus for driving your car safely and not raising a claim in a policy year. You can avail this discount at the time of policy renewal and can accumulate a discount of up to 50% on your insurance premium. Below are a few important points that you must know about your No Claim Bonus-
You can earn an NCB discount of up to 50% by the end of five years of making zero claims. If you are already earning a 50% discount for not raising a single claim in the past 5 years, you cannot earn any further concessions. However, this 50% NCB continues to stay until you are not raising a claim. This is how NCB discount works in car insurance.
Remember your NCB discount is not applicable for third-party car insurance premiums, that is the mandatory cover in India. Therefore, the earned NCB percentage is calculated on only the own-damage premium. Usually, car owners get confused while calculating their claim bonus and wonder why there is an error in a discounted amount.
You can easily transfer your NCB from an old car to a new car. An NCB certificate in car insurance belongs to the car owner but not the car itself. However, the NCB certificate is not transferable from one owner to another owner of the car.
Therefore, you can easily transfer the accumulated NCB discounts on your old car to a new car and this is valid for three years.
Never write any random digit for NCB percentage while switching your car insurance policies because it can lead you into trouble. In case of incorrect NCB, your insurer can reject your claim in the future. In case you are switching your insurer, give them right correct information if you have raised a claim with your previous insurer in the policy tenure.
Your new insurer will crosscheck all the information while offering you the policy. So, there is no point in hiding it.
The documents required to submit as a proof to transfer your NCB certificate include the following documents-
The NCB is a reward for driving carefully and being safe on the road. One should always keep in mind the above-mentioned factors to retain their accumulated bonus as much as possible. When you buy four-wheeler insurance
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