Save up to 60% on Car Insurance
  • 3500+
    Cashless Garages across India
  • 50 Lakh+
    Happy Customers
  • 24X7
    Roadside Assistance
  • 100%
    Insurance Coverage on Service Invoice Price

We promise limited calls

*Please note that the quotes shown will be from our partners
*BY Clicking on "Compare & Save Big" you agree to our Terms of Use

No Claim Bonus- All You Need to Know!

Haven’t you wondered about the apparent injustice in a situation where both you and your friend who is a bad driver and often gets into little accidents, pay the same for car insurance? If you have, here is some great news for you. Car insurance providers reward those who don’t make claims during the year. That reward is the No Claim Bonus and it can lead to good savings.

How it Affects the Premium?

No claim bonus is the discount benefit offered by the insurer on the car insurance premium. It is applicable if the insured has not made any claim in the preceding year. The percentage of discount varies depending upon the consecutive number of years for which the claim has not been made. For better understanding let’s look at this table-

No claim made or pending during the preceding full year of insurance20%

For All Types of Vehicles

% of Discount on OD* premium

No claim made or pending during the preceding 2 consecutive years of insurance


No claim made or pending during the preceding 3 consecutive years of insurance


No claim made or pending during the preceding 4 consecutive years of insurance


No claim made or pending during the preceding 5 consecutive years of insurance


*OD= Own Damage

Is Old NCB Applicable on New Car?

If you are planning to switch your old car to a new car and concerned about the NCB you have earned for the past claim-free years; fear not. Here’s why. The NCB feature allows you to carry forward the discount from your old insurance to the new one.  An individual can either transfer it for availing discounts on the new one or ask for a refund of the same amount.

NCB discount can be transferred from one insurer to the other but the policyholder needs to be the same in both the cases.

How to Protect Your NCB?

In case your car meets with an accident and you are stuck in a situation where you have to part away with the hard-earned No Claim Bonus, then you can utilize the add-on cover. Add-on cover retains a pre-defined percentage of your no-claim bonus.

A Word of Advice:

You had a car accident and you are wondering whether to file a claim or not. Here’s what the experts say - If the repair cost adds up to a big sum, you should go ahead and file the claim. However, if your loss is petty, filing a claim might not be such a good choice after all.

Here’s why:  When you file a claim, no matter how small, it not only ruptures the No Claim Bonus you build up so earnestly over the years but also shoots up your premium substantially.

On the other hand, if you choose not to file the claim and go for self-financing the repairing amount, you get to enjoy the NCB discount on your premium which is at least 20% of your annual premium.