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No Claim Bonus (NCB) in Car Insurance

No Claim Bonus (NCB) in car insurance is a reward given by the insurance provider to policyholders. Under this, if a policyholder does not raise any claims during the policy tenure, the insurance provider offers a discount on the insurance premium at the time of policy renewal. It is a great way for individuals to raise awareness about safe driving and avoid unnecessary claims.

Suppose you have purchased a car insurance plan for your car. You haven’t filed any claim during the coverage period. Then, as an incentive, the insurance provider will offer a no claim bonus discount at the time of policy renewal, which lowers the insurance premium.

The no-claim bonus percentage may vary from one insurance provider to another. We at IndusInd General Insurance (formerly known as Reliance General Insurance) offer a no claim discount to policyholders ranging from 20% to 50%.

Along with this, we also offer NCB Retention Cover or Protection, which is an add-on that allows you to make up to 2 claims per year* without losing the accumulated NCB discount.

How Does No Claim Bonus (NCB) in Car Insurance Work?

The working of the no claim bonus in a car insurance policy is easy. The NCB typically accumulates over claim-free years, increasing the discount percentage on the premium with each claim-free year, up to a specified limit set by the insurance provider.

However, if a claim is made during the policy period, the NCB may be lost or reduced, depending on the insurance provider’s terms and conditions. This no claim bonus discount is specifically applied to the own-damage premium and comprehensive car insurance policies. It is not applicable to third-party car insurance.

The accumulated NCB discount is utilised at the time of policy renewal. To know the exact NCB discount, you can use the NCB calculator, which most insurance providers offer on their website.

How is NCB in Car Insurance Calculated?

The NCB in a car insurance policy is calculated based on a predefined percentage. It usually starts from the second year of the policy and increases progressively with each claim-free year. Let's examine the NCB discount percentage in a car insurance policy.

Number of Consecutive Claim-Free Years	Percentage of Discount on Own Damage Premium
1 full year of insurance	20%
2 consecutive years of insurance	25%
3 consecutive years of insurance	35%
4 consecutive years of insurance	45%
5 or more consecutive years of insurance	50%

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Features	Features
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Disclaimer: These discount percentages are subject. You can always contact us to ensure you have the most up-to-date information on your applicable discount percentages.

Example of NCB in a Car Insurance Policy

Mr. Jain can save significantly on his car insurance own damage premium through the no claim bonus system by maintaining a claim-free record.

For each consecutive claim-free year, he earns a discount starting at 20% after the first year, increasing to 25% after two years, 35% after three years, 45% after four years, and reaching a maximum of 50% after five or more claim-free years.

This discount applies only to the own damage portion of the premium and helps reduce the renewal cost. For example, with a ₹10,000 own damage premium and three claim-free years, Mr. Jain would only pay ₹6,500 at renewal.

This system rewards safe driving and vehicle upkeep, encouraging policyholders like Mr. Jain to avoid claims and benefit from substantial premium savings over time.

Features and Benefits of Roadside Assistance

Lower Car Insurance Premium

No Claim Bonus helps reduce the renewal premium significantly, starting with a 20% discount after the first claim-free year and increasing to 50% after five consecutive claim-free years. IndusInd General Insurance offers this benefit, making car insurance renewal more affordable for its responsible policyholders.

Encourages Responsible Driving

The NCB scheme encourages drivers to adopt safe driving habits, enabling them to maintain their claim-free status and enjoy premium discounts. IndusInd General Insurance supports this by rewarding customers who drive cautiously and avoid filing claims unnecessarily.

Easily Transferable

The NCB accumulated with IndusInd General Insurance is linked to the policyholder, not the vehicle, so it can be transferred when switching insurers or buying a new car under the same ownership, thus preserving the earned discounts.

Encourage Claim Avoidance

Since filing a claim can reduce or reset the NCB, IndusInd General Insurance’s policy encourages policyholders to avoid minor claims, helping them maintain their bonus and save money on future premiums.

What is NCB Protector in Car Insurance?

NCB protector, also known as NCB retention cover, is a voluntary add-on that comes with a comprehensive car insurance policy. With this add-on, policyholders can file one claim during a policy tenure without losing their accumulated NCB discount.

Usually, the NCB discount is lost if a policyholder files a car insurance claim. But there are certain scenarios where policyholders need to file a car insurance claim for the damage, and this add-on allows them to protect their accumulated bonus. At IndusInd General Insurance, we offer NCB protection cover as part of our comprehensive car insurance policy that allows up to 2 claims per year*.

For example, Mr. Sharma had accumulated a 50% NCB after five claim-free years. When his car was damaged in a minor accident mid-year, he needed to file a claim, but thanks to the NCB protection cover, he was able to claim without losing his valuable accumulated discount. This add-on ensures policyholders can protect their hard-earned NCB even when they need to claim for genuine damages.

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Who Should Buy the NCB Protector Add-on?

Those still gaining confidence and experience on the road may face a higher risk of minor accidents. This cover helps new drivers protect their discount, even if they make a claim, offering them financial relief.

It is ideal for those living in high-risk locations, such as accident-prone areas or flood zones. This add-on enables claims without forfeiting hard-earned discounts, helping to maintain affordable premiums despite the area's frequent accidents.

This add-on benefits owners of expensive cars by preserving their no claim bonus. It protects against premium hikes caused by costly repairs while ensuring long-term savings on insurance renewals.

It suits policyholders focused on maximising savings over multiple years. This add-on safeguards their accumulated discount through occasional claims, helping maintain steady premium reductions in the long run.

How to Buy Car Insurance with NCB Cover?

A no claim bonus retention cover is available with a comprehensive or own damage car insurance plan. To purchase a car insurance policy with no claim retention cover, you need to follow the steps mentioned below.

Use Calculator

Enter your car details on the calculator below to check the price.

Enter Details

Enter your car registration and mobile number on the form on top of this page.

Choose Policy

Select car make/model, then choose the car insurance plan.

Select Add-On

Include the NCB protection add-on to your car insurance plan.

Pay & Get Policy

Pay and receive your policy with the NCB cover via email.

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General Terms and Conditions of No Claim Bonus

To be eligible for the no claim bonus, policyholders must comply with the general terms and conditions set by the insurance provider. These conditions are:

If you raise a claim during the policy tenure without NCB protection, your NCB discount resets to zero.
If you fail to renew your car insurance policy during the stipulated timeframe, then the NCB bonus will be terminated and cannot be reinstated.
The NCB can be transferred from one insurance provider to another at the time of policy renewal.
The NCB bonus can be transferred from one vehicle to another, provided the policyholder remains unchanged.
If, at the time of selling your vehicle, the NCB bonus is not transferred to your new vehicle or carried forward, it will be terminated.

No Claim Bonus if Vehicle is Stolen or in an Accident

In the event of an accident, all accumulated NCB bonus or some of it will be lost unless the insurance provider is able to recover the major expenditure from the other party involved.
In the event that the car is stolen, the accumulated NCB bonus is lost as the insurance provider will not be able to recover the expenditure from the other company.

Disclaimer: For the complete list of terms and conditions, please refer to the policy wording here

How to Transfer NCB in Car Insurance?

The no claim bonus is associated with the policyholder, not with the vehicle. So if you decide to change the vehicle, your no-claim bonus will not be lost. However, if you decide to change your insurance provider, then here is how you can transfer the no-claim bonus.

Online Transfer

At the time of transferring a car insurance policy, declare the accumulated NCB discount to the new insurance provider.

Provide the details of your previous car insurance policy to the new insurance provider.

Fill out the requested details, submit all relevant documents, and make the payment.

The new insurance provider will transfer the NCB bonus from your previous policy to the new one.

Offline Transfer

To transfer offline, request that the previous insurance provider provide the NCB certificate.

Complete the information and submit all necessary documents to your previous insurance provider.

Upon verification of documents, the insurance provider will release the NCB certificate.

Submit this issued NCB certificate to the insurance provider at the time of purchasing a policy.

Documents Required for NCB Transfer in Car Insurance

Insurance Proof: Copy of previous car insurance policy, duly filled and signed the claim bonus form

Ownership Proof: Copy of buyer and seller agreement (Form 29 and 30), copy of ownership transfer certificate

Vehicle-Related Documents: Copy of booking receipt for new vehicle, receipt of car delivery for a used and second-hand vehicle

NCB & Other Details: Transfer application, Issued NCB certificate, and any other documents required by the insurance provider

Disclaimer: For the full list of documents, please refer to our policy documents or get in touch with our customer helpline.

How to Apply NCB Discount During Car Insurance Renewal?

Navigate to the form on top of this page, choose the ‘Renewal’ tab and enter your car registration number or policy number. You can also tap "InstaRenew" on the Self-i app.

Check your existing car policy details and modify coverage if needed. At this stage, you can pick new add-ons like the NCB retention add-on if you want additional coverage options.

Check your accumulated no claim bonus discount from the previous year and apply it to your premium if applicable. Then check the displayed NCB information and confirm the details.

Once you've checked your policy premium and details, make the payment online and get your policy renewed right away.

Key Takeaways

A no claim bonus is an excellent way to lower your car insurance premium at the time of policy renewal; however, the bonus will only be applicable if you have not made any claim during the policy tenure. It encourages policyholders to drive safely and avoid making claims for small incidents.

The NCB discount typically ranges from 20% for the first claim-free year up to 50% after five consecutive claim-free years, offering significant savings. NCB can be lost if you claim during the policy period unless you have purchased an NCB protection add-on.

At IndusInd General Insurance, we offer a no-claim bonus discount to all our policyholders. With this, customers can save money while renewing their car insurance plan. Furthermore, with our Self-i app, it is easy to renew a car insurance plan from anywhere.

Apart from this, we also offer NCB protection cover to policyholders to safeguard their accumulated bonus. This add-on allows you to claim during the policy period without losing your valuable NCB discount. So what is stopping you now? Enjoy the maximum benefits by purchasing our car insurance plan with NCB cover.

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Keep Your Discount Even After a Claim

Stay protected from premium hikes and keep your NCB discount for up to 2 claims with our NCB retention cover. All it takes is a few taps on the Self-i app to add this cover to your plan!

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Frequently Asked Questions (FAQs)

What is an NCB certificate?

A No Claim Bonus (NCB) certificate is an official document issued by an insurance company that certifies the number of claim-free years a policyholder has maintained on their car insurance policy.

This certificate serves as proof of the accumulated No Claim Bonus, which entitles the policyholder to a premium discount during policy renewal. It is a crucial document when transferring the no-claim bonus to a new vehicle or insurance provider.

How to check NCB in car insurance?

The no-claim bonus can be easily checked during car insurance policy renewal. Every insurance provider has an NCB slab rate based on that they offered a discount to the policyholder. For instance, IndusInd General Insurance offers a 25% discount for 2 consecutive claim-free years.

How to ensure you don’t lose NCB in car insurance?

To ensure you do not lose the NCB discount in your car insurance policy, you need to follow the tips mentioned below:

Avoid accidents by practising cautious and responsible driving, reducing the likelihood of making any claims.
For small damages or scratches, it is better to cover the costs out of pocket instead of filing a claim, which helps preserve your NCB.
Ensure you renew your car insurance policy within the given grace period to retain the NCB benefits.
Keep track of your NCB status before policy renewal to ensure you receive the correct discount.

How to Get an NCB Certificate?

To obtain an NCB certificate from the insurance provider, follow the steps outlined below.

Inform your current insurer that you require an NCB certificate, usually when you plan to switch insurers or renew your policy.
Please provide your policy details, including policy number, vehicle registration, and claim history.
Request the insurer to issue the NCB certificate, which confirms the number of claim-free years and the corresponding discount.
The insurer will verify your claim-free history and issue the certificate, typically within a few business days.
Keep this certificate safe, as it can be used to transfer or avail the NCB benefits with your new insurer or during policy renewal.

What are some myths associated with NCB in India?

There are various myths associated with the no claim bonus in India. These myths are:

If you change car insurance providers, then you will lose the no-claim bonus benefit.
The NCB is associated with the vehicle, not the policyholder, which is incorrect.
If you replace an old car with a new one, you will not lose the no-claim bonus benefit, which is incorrect.

Is a no claim bonus applicable to multiple cars?

No Claim Bonus (NCB) is earned individually for each car insurance policy and is not automatically shared across multiple vehicles. If you own multiple cars, you must have separate insurance policies for each, and you can earn and accumulate NCB on each car independently, provided you do not make any claims on their respective policies.

Can a no claim bonus be rejected at the time of policy renewal?

Yes, a no claim bonus can be rejected at the time of policy renewal under certain circumstances. These situations are:

If you provide incorrect or exaggerated information about your claim history.
If you fail to renew a car insurance policy within the stipulated grace period.
If you do not submit the required proof or certificate of NCB when switching insurers.
Lastly, if a claim was made during the previous policy period, the insurer may refuse the NCB discount.

How long is NCB valid for?

The no-claim bonus is valid as long as you renew your car insurance policy without claiming during the policy period. Typically, if you fail to renew your policy within 90 days after the expiry date, you lose the accumulated NCB.

Additionally, the NCB is cumulative and enhanced with every claim-free year, offering discounts ranging from 20% after the first claim-free year to 50% after consecutive five claim-free years.

Disclaimer: These discount percentages are subject to change based on the age of the vehicle, vehicle make and model, and your chosen plan options. You can always contact us to ensure you have the most up-to-date information on your applicable discount percentages.

Can NCB protection cover be added at the time of policy renewal?

Yes, you can easily add the NCB protection cover at the time of policy renewal. You will have to pay the marginally increased premium for this. However, this add-on will safeguard your savings and allow you to continue enjoying premium discounts, even if you file a claim for minor damages.

How many claims can I make with NCB retention cover?

With an NCB retention cover, you can usually make one approved accidental claim during the policy period without losing your accumulated no claim bonus.

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