WHAT IS NCB NO CLAIM BONUS

What is No Claim Bonus in Car Insurance?

No Claim Bonus or NCB is a discount offered by the insurance company in car insurance renewal fees for each claim-free year. Accumulation of claim free years provides you with the opportunity to renew car insurance for a lesser premium. For each additional claim free year you will be offered with an additional percentage of discount in car insurance renewal premium.

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

NCB eligibility status 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.

 

No Claim Bonus Benefits in Car Insurance

Discount on Premium

Depending on the number of claim free years NCB can provide 20% to 50% discount on policy renewal.

Transferable

You can transfer your NCB discount on switching your car or car insurance provider.

Enhanced Coverage

With reducing policy renewal pricing with NCB you can afford buying more add-ons and comprehensive coverage to your vehicle.

Encourage Safe Driving

With the offer of No Claim Bonus, car insurance providers motivate drivers for safe driving which reduces the accident chances.

 

How Does No Claim Bonus Works?

The working of the NCB is similar to any other reward program. It motivates car owners to continue to drive safely. In fact, they try their best not to raise car insurance claim settlement for minor damages. This way they don’t lose their eligibility to get the NCB benefit at the time of renewal.

When the policyholder renews his/her car insurance at the end of the first year, he/she becomes eligible for a 20 percent discount in premium. As discussed earlier, the discount is applied only if the policyholder has not filed a car insurance claim during the first policy year. 

Subsequently, the car owner gains an additional 5 percent from the second no-claim year onwards. This way the discount can go up to 50 percent in the sixth consecutive no-claim year.

 

Terms and Conditions for NCB in Insurance

• You will not be eligible to avail No Claim Bonus if you have already claimed car insurance in the previous year.
• If you failed to renew car insurance policy within 90 days from the expiry date you will not be eligible for No Claim Bonus
• The NCB is not offered to third party car insurance holders and only offered with own damage car insurance or Comprehensive car insurance policy.
• The add-on covers are eligible for any NCB benefit
• If you bought NCB Protect Cover add-on with car insurance, you can retain NCB eligibility even if you file an insurance claim during a policy year.
• NCB can only be transferred within the same person’s name
• In the event of an accident or car theft, the applicability of the No Claim Bonus (NCB) depends on recovery of the expenses from the responsible party and determination of the fault.

 

How to transfer No Claim Bonus

NCB is transferable and can be transferred while switching car or insurance provider. Following below steps can help you to transfer your existing car insurance No Claim Bonus.

Step 1: Obtain NCB Certificate

Request an NCB certificate or a statement proving your claim-free history to your car insurance provider. This certificate serves as proof of your NCB entitlement.

Step 2: Purchase a New Car or Policy

When buying a new car or switching car insurance provider, inform the insurer about your existing NCB and provide the NCB certificate to transfer the bonus.

Step 3: Submit Required Documents

Submit the necessary documents, including the NCB certificate, proof of sale of your old car, and identity details, to the new insurer.

Step 4: NCB Transfer to New Policy

The new insurance provider will apply the No Claim Bonus discount to your new car insurance policy, reducing your premium for the own-damage portion of the coverage.

 

Documents Required for NCB Transfer

should keep the following documents ready for smooth transfer of NCB from one insurance provider to another or from one car to another.

• NCB Certificate
• Copy of Car Insurance
• Document Proving Car Ownership
• Transfer application
• Buyer seller agreement (Form 29 & 30)
• Ownership transfer certificate

 

FAQs on No Claim Bonus in Insurance

When Does NCB Features Gets Canceled?

NCB feature gets canceled, when you claim your car insurance or failed to renew policy within 90 days of expiry date.

 

What Happens to NCB if I Change Insurance Provider?

NCB is transferable and you can avail NCB benefits even after changing your car insurance provider.

 

Can I Use NCB on Multiple Owned Cars?

No, NCB applies to one car and cannot use on multiple cars though it is possible to transfer the NCB from one car’s policy to another.

 

What Should I Do to Retain My NCB Benefit While Selling 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.

 

What is the Difference Between NCB Protection Cover and No Claim Bonus?

No Claim Bonus is a discount provided by  insurance companies on insurance renewal premiums in exchange for a claim free year. While NCB Protection Cover is an add-on that you can buy with an insurance policy to keep NCB benefits on even after claiming insurance policy.