No Claim Bonus in Car Insurance

No claim bonus or NCB in car insurance is a reward given to policyholders when they don’t raise any claim during the policy year. Insurers offer the NCB reward to car owners to encourage them to drive safely and not make any claim. You can use this NCB reward to get a discount on your own damage (OD) premium at the time of car insurance renewal.

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What is No Claim Bonus in Car Insurance?

No claim bonus in car insurance is simply a discount ranging between 20%-50% on your car insurance renewal premium. When you do not make any claim in your policy year, your insurance company gives you a no claim bonus discount of 20% on your renewal premium for the second year. This NCB discount grows every year for up to 5 consecutive claim-free years, reaching a maximum of 50% in the fifth year. However, any claim you make against your car insurance policy resets your no claim bonus to zero.

Benefits of NCB in Car Insurance

No claim bonus in car insurance offers these benefits to the policyholders:

• Significant Savings: With the no claim bonus, vehicle owners can save up to 50% on their own damage premium after 5 consecutive claim-free years.
• Transferable: Since the no claim bonus is linked to the policyholder and not the vehicle, you can easily transfer NCB when switching your car or the insurer.
• Promotes Safe Driving: By providing NCB in car insurance, insurers encourage car owners to maintain a safe driving record.

How to Calculate NCB in Car Insurance?

To calculate no claim bonus in car insurance, consider this example:

The OD premium for your 1st year car insurance is Rs. 22,000.

So, if you do not make any claim in the 1st year, your car insurance renewal premium for the 2nd year will be as follows:

Below is the table to help you understand the working of a no claim bonus calculator:

How to Transfer NCB to a New Car Insurance?

NCB transfer to a new car or insurer is an easy process that you can do both online and offline.

While renewing your car insurance online, share your previous policy number, correct NCB, and the previous insurer's name with your new insurance provider. The insurer will transfer your existing no claim bonus to your new policy, and you can continue enjoying the same benefits.

For an offline NCB transfer, simply contact your old insurer and submit the required documents. Your old insurer will provide you with an NCB certificate, which you need to present to the new insurer for the NCB transfer.

Documents Required for NCB Transfer

To transfer your no claim bonus when switching insurers or buying a new vehicle, have these documents handy:

• NCB transfer application form
• Copy of the car insurance policy
• Buyer-seller agreement (Forms 29 & 30)
• Copy of transferring old registration certificate/ownership transfer certificate (in case of sale of old car)
• Copy of delivery note (in case of sale of old car) and the booking receipt (in case of buying a new vehicle)
• NCB certificate from previous insurer

When is the No Claim Bonus Terminated?

A no claim bonus in car insurance policy can get annulled under the following situations:

• If you make a car insurance claim during the policy year.
• If you don't renew your vehicle insurance policy within 90 days of its expiration.
• If you don't transfer your no claim bonus to another insurer or a new car insurance policy within a certain period.

How to Check NCB in Car Insurance?

To check NCB in car insurance, follow these easy steps:

1. Contact Your Insurance Provider

   The simplest method to confirm your NCB status is by reaching out to your insurer via phone, email, or by visiting their branch.

2. Utilise Online Platforms

   If you have purchased car insurance online, simply log in to your account dashboard on the insurer's website or Policybazaar.com and view your NCB status.

3. Review Your Policy

   Another way to check NCB in car insurance is by going through your policy documents.

What is NCB Protector in Car Insurance?

A no claim bonus only applies for a claim-free policy year, and it becomes zero once you make a claim. With the NCB Protector add-on in car insurance, you can protect your no claim bonus even after raising a claim under your policy.

The highly useful NCB Protector add-on comes at a small extra premium. You can opt for it while buying or renewing comprehensive or own-damage car insurance.

Here is a table highlighting the features of NCB Protector add-on cover:

Terms and Conditions of No Claim Bonus

There are certain conditions of no claim bonus (NCB) transfer in car insurance that you should be aware of:

1. Ensure that you transfer no claim bonus to the new vehicle when buying a new car and selling an old vehicle. At the time of the NCB transfer process, your insurance company will issue a certificate, known as an NCB certificate. But, remember that this decision is solely at the discretion of the insurer.
2. The NCB protector add-on cover cannot be availed with a third party car insurance policy. It is only applicable to an own damage or comprehensive car insurance policy.