No Claim Bonus (NCB) in Car Insurance

How is NCB Calculated in Car Insurance?

Here is the table that shows how the No Claim Bonus is calculated in car insurance as per the number of claim-free years:

Consider this example;

The own damage premium for your 1st year car insurance is Rs. 22,000, and if you do not raise any claims, your car insurance renewal premium for the 2nd year will be as follows:

Steps to Check NCB in Car Insurance

If you are looking for how to check NCB in car insurance, follow these easy steps:

• Contact your Insurer

  The easiest way to check your NCB status is by reaching out to your car insurance company via phone or email or by visiting their nearest branch and requesting your NCB status or an official NCB Certificate (required when transferring your NCB to a new car or switching your insurer)

• Use Online Portalsn

  Most insurers offer online platforms or mobile apps where you can view your policy details, including your NCB status. Simply log in to your account on their website or app, navigate to the 'Policy Details' or 'Renewal' section to view your NCB.

• Check Policy Documents

  Another way to check your no claim bonus in car insurance is to go through your current or previous policy papers. Look for a section that lists your earned NCB percentage (which starts at 20% for the first claim-free year and reaches a maximum of 50% for five claim-free years).

What Happens to NCB in case of an Accident or Theft?

In case your car meets with an unfortunate accident or is stolen, it also affects your NCB. Here is how:

NCB in Case of Accidents

Your final NCB status in case of an accident depends on who was at fault, the extent of the damage, and your specific policy coverage:

• If you are at Fault/Source is Unknown

  If you file an insurance claim to repair your car, your NCB immediately resets to 0%, irrespective of how small the damage was.

• If the Third-Party is at Fault

  If another driver caused the accident and your insurer recovers the entire repair cost from that driver's third-party insurance, your NCB will stay protected.

• Small Scratches or Minor Damage

  You can also preserve your no claim bonus by paying for minor accidental damages to your car from your pocket instead of filing an insurance claim.

NCB in Case of Stolen Car or Total Loss

If your car is stolen or damaged beyond repair, it is declared a total loss. In this case, you lose all your accumulated NCB because your insurer makes the claim payout (based on the car's IDV), and there is no scope for the recovery of money from a third party.

How to Transfer Your NCB to a New Car or Insurer?

You can easily transfer no claim bonus to your new car insurance using the steps mentioned below:

• 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.

Note: The NCB is transferable only if the owner stays the same while changing the car or the insurer. You cannot transfer the NCB if you sell the car. While switching the insurer, your existing insurance company will also have to provide proof of your accumulated NCB.

Terms and Conditions of No Claim Bonus

To avail of NCB in insurance, keep in mind these important terms and conditions of no claim bonus:

1. When buying a new car and selling an old one, make sure that you transfer your existing no-claim bonus to the new vehicle. During this transfer process, the insurer will issue you an NCB certificate. However, the final decision will be made at the discretion of your insurance company.
2. No claim bonus is available with own-damage or comprehensive car insurance, and not with the third-party policy.