NCB is a discount in renewal premium that an insurance company offers to a policyholder for each claim-free year. You will lose your eligibility for a reduction in renewal premium if you file a claim during the period when the policy was in force. As such, the accumulation of NCB provides you with an opportunity to either buy or renew car insurance for a lesser premium unless you raise a claim or your base policy expires. 

The table given below shows the discounts available to you for each claim-free year:

Number of Claim-free Years

Discount on Premium

One Year


Two Years


Three Years


Four Years


Five Years


Your NCB eligibility also indicates what kind of a driver you are. If you have more claim-free years to your credit, the insurers will view you as a good and experienced driver. This motivates insurers to reward you with certain additional perks.

What is a No Claim Bonus Protection Cover?

The NCB protector in car insurance presents you with a smart option to ensure the bonuses earned remain protected even if you had to file a claim for damages caused to your car. The NCB protector is often provided to you as an add-on or a rider to your car’s base insurance policy. Among the various add-on covers that are offered by insurers, the NCB protection cover is by far the most favoured one. This is because policyholders can enjoy a reduction in renewal premiums depending on the bonus they have accumulated.

To buy the NCB protection cover, you may have to pay an additional amount to the tune of 5 percent to 10 percent of the base policy premium. Though the NCB cover costs you a little bit of money, it is worth it as the accumulated bonus helps you save a good amount.

NCB in Car Insurance – Important Things You Should Know About NCB

When renewing your policy or transferring the same to another insurer, you can claim the accumulated bonus if you have included the NCB add-on cover in your car insurance.

Even when selling your car, it is possible to transfer the car’s insurance policy to the buyer without giving off the accumulated NCB. You can keep the NCB with you till such time you buy the new insurance. This way you can continue to enjoy premium discounts. However, you have to provide the NCB retention letter to the buyer.

When you file a claim, the NCB you have accumulated will be used for settling your claim unless you have availed of the NCB protection cover.

You can lose the NCB you have accumulated if you fail to renew your car’s insurance policy within 90 days from the expiry date of the policy. If your car insurance policy gets cancelled prior to the expiry date of the policy, then you are not eligible for any NCB.

Who All Need NCB Protection Cover

The benefits of having this add-on have already been explained. Therefore, all car owners who want to safeguard their driving history and looking for discounts in renewal premiums must opt for the NCB protection cover. For expensive cars, it is imperative to add the NCB protection cover to the base policy as the premiums are often very high.

No Claim Bonus Protection Cover FAQs

Q1. Can I use my NCB on multiple cars?

No, that is not possible. The NCB applies to one car and that car’s insurance policy. You cannot use this feature on multiple cars though it is possible to transfer the NCB from one car’s policy to another.

Q2. What should I do to retain my NCB benefit when selling my car?

To retain the NCB benefit, you need to submit the No Claim Bonus retention certificate from the insurer along with the sale deed in Form 29 for ownership transfer to the Regional Transport Office (RTO) in which your car is registered.

Q3. Is the NCB Protection Cover absolutely essential?

It is not mandatory to buy this cover. If you include it in your car insurance, you will be eligible for the NCB even if you file a claim.

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