No Claim Bonus in Car Insurance is a powerful premium-saving feature. In India, as of 2025, NCB rewards safe drivers with discounts up to 50% on the own-damage component of your renewal premium. In this guide, you’ll learn how NCB works, its benefits, transfer rules, and how to protect and leverage it better.
🟢 What Is the No Claim Bonus (NCB)?
- No Claim Bonus (NCB) is a discount offered when you don’t make any claim during your policy period.
- It applies only to the own-damage portion, not the mandatory third-party coverage ICICI Lombard jioinsure.in.
- The discount grows each claim-free year: 20% for year 1, up to 50% by year 5 without claims Digit Insurance HDFC ERG ACKO.
📊 NCB Discount Structure (Based on Claim-free Years)
| Consecutive Claim-Free Years | NCB Discount |
|---|---|
| 1 year | 20% |
| 2 years | 25% |
| 3 years | 35% |
| 4 years | 45% |
| 5+ years | 50% (maximum) |
Start saving from your very second year—consistent safe driving pays off
💡 Why Is NCB Important?
- Reduces your renewal premium by up to 50%, making comprehensive policies more affordable
- Encourages responsible driving habits.
- Makes switching insurers easier—because NCB is tied to you, not your vehicle
🔄 How to Transfer NCB to a New Car or Insurer
- Request an NCB certificate from your current insurer within 90 days of policy expiry.
- Provide it along with your RC copy and policy document to the new insurer.
- If you switch vehicles or insurers, the NCB transfer helps you retain accumulated discounts (only applicable if car class remains same) Bajaj Allianz General Insurance Company ICICI Lombard.
🛠️ What Causes NCB to Be Lost or Nullified?
- Filing any claim (even minor) resets your NCB to zero unless you have an NCB Protector add-on Policybazaar.
- Failure to renew within 90 days also leads to NCB forfeiture, even if no claim was filed
- False NCB declarations can result in claim rejection or loss of bonus
💰 How Is NCB Calculated?
- Applies only to the own-damage premium.
- Example: If OD premium is ₹10,000 and you earn 20% NCB → Discount = ₹2,000. Only ₹8,000 is payable the following year
🛡️ How to Protect NCB — NCB Protector Add-On
Some insurers offer an NCB Protector add-on (typically a 5–10% premium increase). It allows for one claim per year without losing your accumulated NCB. Ideal if you’re still cautious but want to maintain bonus earned Policybazaar.
🧠 Pro Tips to Maximize Your NCB
- Renew your policy well before expiry—never let it lapse over 90 days.
- Drive responsibly to avoid unnecessary claims.
- Keep your NCB certificate safe for transfers.
- Use PolicyBazaar or IRDAI-certified platforms to compare policies with NCB options
🧾 FAQ — No Claim Bonus in Car Insurance
Q1: Can I use NCB if I switch to a new insurer?
A: Yes. As long as you submit a valid NCB certificate within the renewal window, your bonus transfers seamlessly €citeICICI LombardPolicybazaar.
Q2: Will filing a minor claim reset my NCB?
A: Yes, unless you’ve opted for the NCB Protector add-on, in which case you can retain it for one claim.
Q3: Is NCB applicable to third-party insurance?
A: No. NCB applies only to comprehensive or standalone own-damage policies, not third-party liability
Q4: How long is NCB valid if I sell my car?
A: Your NCB is valid for up to 3 years after policy expiry and can be claimed later using an NCB certificate ICICI LombardPolicyBachat.
Q5: What is the maximum discount I can get through NCB?
A: Up to 50% discount on OD premium after five consecutive claim-free years jioinsure.in.
🔗 Useful Links
- ✅ Internal: How to File a Car Insurance Claim in India
- ✅ External: Policybazaar – No Claim Bonus Guide
- ✅ External: IRDAI Motor Insurance Guidelines
✅ Final Word
Understanding No Claim Bonus in Car Insurance can save you thousands over years of safe driving. Make your NCB work for you—drive cautiously, renew timely, and switch smartly to lower your own damage premium in India 2025.
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