How no claim bonus protection works in car insurance

2 Mins read


A comprehensive car insurance package covers not only the required third-party liability insurance, but also comes with a slew of added benefits. For instance, if you do not make a claim in the previous policy year, you will receive a no claim bonus. As a result, you win a higher no claim bonus for each year you go without filing a claim.


What is a no claim bonus (NCB)

When you renew your insurance policy, you may get an NCB, which is effectively a discount on your premium. Suppose policy term is coming to a close, and it’s time to extend your coverage. In this period, you have not filed a single claim. As a result, when you renew your contract, the insurer gives you a discount. This benefit is known as a No Claim Bonus on car insurance.

How it works

NCB It serves as both a reward and an incentive to continue putting in good work. As a result of the NCB, insurers advise you to drive safely and prohibit you from filing claims. An car insurance policyholder would be more hesitant to file claims for minor problems in this manner.

How is NCB calculated?

  • You will get a 50% discount on your insurance premium if you don’t file any claims for five years in a row. There are different percentages, depending on the number of years. You can check your expected premium using this car insurance calculator.
  • On filing a claim, however, the percentage will reset to zero. 

In other words, if you do not make a claim during the preceding year of the policy, you can receive a discount on the payable premium for the following year of the policy.

NCB Add-on

Add-ons are  optional coverage options that can be purchased at an extra premium for your comprehensive or standalone car insurance policy. You can check your expected premium using this car insurance calculator.

  • NCB Add-on: This add-on lets you keep your NCB even if you have a claim on your car insurance policy. There are no restrictions on the claims you can make with this add-on- your accrued NCB discount will not be affected by the amount of claims you make.
  • Compare the add-on premium rates of various insurers when purchasing the no claim bonus insurance coverage benefit. Choose a lower-cost insurer so that you can save money on your premiums as well.

Benefits of NCB

  • Discount

NCB ensures you’ll have to pay a lower premium than you would have if you’d filed a claim during the policy era

  • High Savings

If you follow the rules, NCB increases. As a result, if you go five years without filing a claim and amend your policy on time, you will save a lot of money on your policy renewal.

  • Transferable

NCB is connected to the car owner, not the vehicle. As a result, if you intend to sell your old  and insured car and buy a new one, you will carry forward the NCB. If you want to port your policy from one insurer to another, NCB will come along.


How the efforts to support MSMEs pan out with this new wave of infections remains to be seen. A No Claim Bonus is an incentive given to a policyholder who does not file a claim. This bonus is granted in accordance with the Insurance Regulatory and Development Authority of India’s guidelines (IRDAI). You can claim the NCB accrued in your name even if you wish to purchase car insurance from a different insurer or buy another car.