In the fast-paced roads of India, owning a car isn’t just convenience — it’s responsibility. Every dent, scratch, or mishap reminds you of the importance of good insurance. But what if you drive carefully year after year without making a single claim? That’s when the No Claim Bonus (NCB) rewards you for being a responsible driver.
Let’s break down what No Claim Bonus in Car Insurance India really means and how you can make the most of it.
What is No Claim Bonus (NCB)?
- No Claim Bonus (NCB) is a reward offered by insurance companies for not making any claim during the policy period.
- It’s a discount on the premium of your car insurance when you renew your policy.
- NCB starts from 20% for the first claim-free year and can go up to 50% if you maintain a streak of five consecutive claim-free years.
Example:
If your car’s insurance premium is ₹10,000, and you have an NCB of 20%, you’ll pay only ₹8,000 at renewal.
How Does NCB Work in Car Insurance?
- Policy-Based, Not Vehicle-Based: NCB is linked to the policyholder, not the vehicle. Even if you sell your car, you can transfer the NCB to your new one.
- Lost If Claimed: The moment you make a claim, your NCB resets to zero, unless you have NCB protection cover.
- Valid Across Insurers: You can switch insurers without losing your NCB benefit, as long as you show valid proof of your claim-free history.
Benefits of No Claim Bonus in Car Insurance India
- Lower Premiums: The most obvious benefit — save up to 50% on your own damage premium.
- Encourages Safe Driving: The reward system motivates you to drive responsibly.
- Transferable Advantage: Even if you switch your car or insurer, your NCB remains valid.
- Long-Term Savings: The longer you avoid claims, the bigger your savings grow.
Tips to Maximise Your No Claim Bonus (NCB)
- Avoid Small Claims: For minor damages, it’s often better to pay out-of-pocket instead of losing your NCB.
- Opt for NCB Protection Cover: This add-on lets you retain your NCB even after making one or two minor claims.
- Renew Policy on Time: Delays in renewal beyond 90 days can result in loss of accumulated NCB.
- Drive Safely: Responsible driving is the simplest and most effective way to maintain your NCB streak.
How to Transfer NCB When You Buy a New Car
- Request an NCB certificate from your current insurer.
- Submit it to your new insurer to carry forward the same discount.
- The new insurer verifies and applies the NCB to your new car policy.
This ensures your years of careful driving still pay off — literally.
Conclusion
The No Claim Bonus in Car Insurance India isn’t just a discount — it’s recognition for being cautious and mindful on the road. By protecting and maximizing your NCB, you ensure lower premiums, better savings, and a strong track record as a responsible car owner.
So next time you renew your car insurance, remember — your NCB is not just a number, it’s your driving reputation in digits.
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