An insurance company will award a policyholder with a No Claim Bonus (NCB) if they maintain the status of non-claim for the duration of the policy year. The NCB, which is a concession that ranges from 20% to 50%, is given to the insured when they renew their policy. When renewing, the NCB concession is applied to the premium amount. The policyholder may still transfer this concession if they purchase a new car. *
How Is The No Claim Bonus Calculated?
The No Claim Bonus is applicable starting in the second year of the policy period. If no claims are made after the first year, your car insurance online company may give you a 20% premium reduction. This can continue for up to five years, starting in the second year. See the following table to learn how a no-claim bonus calculator operates:
| Age Of Policy | No Claim Bonus Percentage |
| After 1 one no claim | 20% |
| After 2 consecutive years of no claim | 25% |
| After 3 consecutive years of no claim | 35% |
| After 4 consecutive years of no claim | 45% |
| After 5 consecutive years of no claim | 50% |
What Is Cancellation For The No Claim Bonus Feature?
The following circumstances result in the No Claim Bonus feature ceasing to function:
- The NCB will be eliminated if a claim request is made.
- The NCB concession also expires if a policy is not renewed within 90 days of expiration. *
What Advantages Does No Claim Bonus Offer?
You can transfer a no-claim bonus (NCB) from one vehicle owned by the same person to another. NCB can also be shifted from the primary owner to a secondary one at renewal. When selling your old car and buying a new one, remember to transfer the NCB to the new vehicle. The insurance provider issues a certificate during the transfer, potentially lowering the premium. However, the final decision lies with the car insurance online company. ## *
There won’t be a No Claim Bonus available for just third-party insurance. It is exclusively available with comprehensive or personal damage insurance. Claims are subject to terms and conditions set forth under the motor insurance policy.
What Is An Add-On For No Claim Bonuses?
To preserve the NCB concession, some insurance providers have begun to offer an optional No Claim Bonus Protector add-on. With this add-on coverage, you can maintain your NCB concession up to a predetermined limit on any car insurance claim process requests made. *
How Does One Go About Transferring NCB?
The owner should retain a copy of the ownership transfer and the previous registration copy if the NCB certificate is transferred from one car to another. The insurance company will then provide the transfer certificate.
The third step is requesting that the insurance provider issue the NCB on the newly transferred policy. *
What Occurs If You Switch Insurance Companies?
When you switch, you can transfer your No Claim Bonus (NCB) to a new insurer. NCB calculation is clear and predetermined. To benefit from NCB, avoid making claims in a policy year. You’ll lose the bonus if you’ve already claimed for minor vehicle damage. Consider adding NCB protection to preserve your bonus in case of a claim. Make sure you are well aware of all car insurance claim rules. *
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*Standard T&C Apply
##All savings are provided by the insurer as per the IRDAI-approved insurance plan.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
